Definition : Immovable hypothec (conventional)

Guarantee taken by a creditor, affecting immovable property and granting him certain specific rights upon such property to secure the payment of a debt. The immovable hypothec ensures, without limitation, that the creditor is to be preferred over certain other creditors of the debtor and that he will be able to exercise a hypothecary remedy, even if the property changes hands. It must, under pain of absolute nullity, be granted by notarial act en minute and it must be published at the registry office to be set up against third persons. It is usually granted by a financial institution (the creditor) to allow a buyer (the debtor) to acquire an immovable (e.g. a condominium or a house).

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You move into your new condo. A few weeks later, a bailiff knocks on your door and serves upon you a notice of preservation of a legal hypothec of construction. He also served all your neighbors. Reading this document, you learn that a dispute remains unresolved between the contractor and a supplier (or subcontractor), concerning work performed or materials furnished that have not been paid by the contractor. Often, these problems are resolved through the developer. But sometimes, a co-owners must institute legal proceedings for the cancelation of a legal hypothec from his title.  
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