What Property Owners Must Know About Legal Hypothecs
The majority of people know what real estate mortgages are, whether or not they own a home. For a lot of them, getting a mortgage is an important step to property ownership. However, there are various kinds of mortgages that can be explored. Sometimes, a property can be subject to a hypotheque legale Nord Est without the consent of the owner. Read on to learn more about this:
Kinds of Legal Hypothecs
Under the law, the following are the different kinds of legal mortgages:
- Legal hypothec of the state. This type of legal mortgage is meant to recover some claims, including tax-related sums. For instance, homeowners who fail to pay their taxes can expect a legal hypothec filed by Revenue Quebec on their property.
- Legal hypothec of construction. This is for people who take part in the renovation or construction of a home. It applies when a materials supplier, workers, or contractors add capital gain to the building.
- Legal hypothec from the syndicate of co-owners. This applies if a homeowner failed to pay their condominium fees. In this case, their syndicate can register a legal hypothec notice against the unpaid fraction.
- Legal hypothec that results from a judgment. This kind of legal hypothec can be registered against a property if the owner fails to comply with a court order asking them to pay their creditor a certain amount of money or support.
Common Consequences of a Legal Hypothec for the Owner
If a legal hypothec is registered against a property, lenders may not refinance the property unless the charge is written off by the owner. Also, it may not be possible to sell a home charged with this. With a traditional mortgage, a legal hypothec stays attached to the property even after it has been sold. Lastly, there is a risk of eviction. Creditors may go to court to have the property in question sold by a bailiff. In this case, the property owner will only have sixty days to leave their home.
How a Homeowner Can Protect Themselves Against a Legal Hypothec
To make sure the government, a creditor, or a condo syndicate does not charge a legal hypothec on a property, any amount due should be paid on time. Those who cannot pay their debts can refinance their property or take out a loan. Also, some creditors accept payment agreements. No matter the chosen payment solution, homeowners must keep up with their financial commitments like mortgage installments.
