Whether the House Situated on a Mortgaged Plot of Land is Subject to Handling if the Land is Handled
Will the house on the mortgaged land be processed if the land is foreclosed? When does the mortgage end?
Dear Sir/Madam, I have an issue that needs clarification. I own a piece of land, and on this land, there is a Level 4 house of mine. Over the past few months, my business has suffered losses, so I intend to mortgage the land but not the house. Could you please advise me whether my house will be processed along with the land if I fail to repay the mortgage? I look forward to your response. Thank you very much.If the mortgaged land is handled, will the house on the land be handled accordingly?
Article 325 of the Civil Code 2015 stipulates the case of mortgaging land use rights without mortgaging assets attached to the land as follows:
In the case of mortgaging land use rights without mortgaging assets attached to the land, and the land user is also the owner of the assets attached to the land, the assets to be handled include both the land and the assets attached to the land, except where otherwise agreed.
In the case of mortgaging land use rights where the land user is not simultaneously the owner of the assets attached to the land, when handling the land use rights, the owner of the assets attached to the land is allowed to continue using the land within the scope of their rights and obligations; the rights and obligations of the mortgagor in relation to the owner of the assets attached to the land are transferred to the transferee of the land use rights, except where otherwise agreed.
Based on the above regulations, if both the land and the house belong to you, when the land is handled, your house will also be handled according to the land, except where you and the lender have otherwise agreed.
When does the mortgage of assets terminate?
Article 327 of the Civil Code 2015 stipulates the cases in which the mortgage of assets terminates as follows:
The mortgage of assets terminates in the following cases:
The obligation secured by the mortgage terminates.
The mortgage of assets is canceled or replaced with another security measure.
The mortgaged assets have been handled.
According to the agreement of the parties.
The mortgage of assets will terminate in the cases stated above according to the regulations.
Sincerely!
