Chattel mortgage

Chattel mortgage – within the Property Law in most jurisdictions this term refers to an attachment in the form of legal burden to the movable property. Its role is to allow on a later stage selling it via public auction and paying-off the creditor. When an interest is given in writing on moveable property other than real estate (in which case it is usually a “mortgage”), it is a pledge – to guarantee the payment of a debt or the execution of some action. Chattel mortgage is automatically becomes void when the debt is paid towards creditors, but usually requires certain actions like lodging an application at the Land Register, in order to get it removed. The term origins from the word “chattel” which literally means moveable property; movables. Itself it origins from “cattle”, being the most valuable movable asset instead of real estate.

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