MORTGAGOR’S LIABILITY FOR THE PRESERVATION OF THE VALUE OF A MORTGAGED REAL ESTATE
MORTGAGOR’S LIABILITY FOR THE PRESERVATION OF THE VALUE OF A MORTGAGED REAL ESTATE

Summary/Abstract: In this paper, the authors analyze the civil law liability of a mortgage debtor (mortgagor) in cases where the debtor breaches the obligation of treating the mortgaged real estate in compliance with the legal standard of acting with due diligence of “a good host” or “a good businessman,” and thus depreciates its value to the extent that jeopardizes the possibility of enforcing the claim. Given the accessory nature of mortgage which is aimed at securing the claim as the primary right, this form of civil liability and the corresponding rights of the mortgage creditor (mortgagee) are applicable before raising the issue of traditional civil law liability, which implies the maturity of the receivables and compensation for the damage sustained by the creditor. This form of civil liability may also be used preventively when there is a real risk of causing damage to the mortgagee. The relationship between civil law liability and the insurance of the mortgaged asset implies that they do not exclude but complement each other.

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