ro fr
universul juridic magazin

The legal nature of the giving in payment procedure of certain immovable assets according to Law no. 77/2016

The emergence of Law no. 77/2016 on discharge of mortgage-backed debts through transfer of title over immovable property (the “Law on Debt Discharge”) aimed at balancing the contractual relationships between consumers and credit institutions, non-banking financial institutions or assignees of claims held over consumers. Since the debt discharge, as a means of discharge from the payment of an obligation, is an agreement that requires the consent of the creditor to receive another service than the one in debt, our interest in analyzing the legal nature of this particular method of debt discharge has been triggered by its binding and forced nature to the mortgage lender. The insufficient regulation of the manner in which the debt discharge should be admitted is susceptible to abuse, and the legal nature of enabling (potestative) right of the right to discharge a debt places the mortgagee in a subordinate position, disadvantageous both in relation to the consumer and to the other mortgage lenders or holders of encumbrances on the property.