What Property Owners Must Know About Legal Hypothecs

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. 

Jerry Mojica

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