Following registration of title, the owner of a real estate may submit an application to take out a mortgage over the estate, or a part thereof, for a certain monetary value. As a result of the application, a mortgage deed corresponding to the value of the mortgage is granted, which can be used by the titleholder to create a lien over the estate. The lien is created pursuant to the debtor (e.g., owner of the estate) and the creditor entering into a lien agreement, and the transfer of the mortgage deed to the creditor. Alternatively, the mortgage application can provide that the mortgage deed shall be released to a designated creditor, in which case the lien is created simultaneously with the establishment of the mortgage.
A real estate lien gives the creditor the right to receive payment for his/her debt in expropriation or execution proceedings concerning the estate. The creditor's rights are, however, restricted by the value and, when multiple mortgages exist for the same estate, order of priority of the mortgage.
The mortgage and the mortgage deed remain valid until the property owner submits a separate application for amortization. Needless to say, the mortgage holder’s (creditor’s) consent is a precondition for amortization of the mortgage.