Esihüpoteek

Esihüpoteek, often translated as "pre-hypothec or prior mortgage" in English, is a legal concept primarily found in the civil law tradition, particularly in some European countries. It refers to a mortgage or charge that is established over a property before any other subsequent mortgages or claims are registered. This pre-existing charge holds priority over any later encumbrances, regardless of when those later claims are formally recorded.

The core function of an esihüpoteek is to secure a debt or obligation. If the property owner defaults on the secured debt, the holder of the esihüpoteek has the primary right to be satisfied from the proceeds of the sale of the property. This means that if the property is sold to cover debts, the esihüpoteek holder will be paid in full before any other creditors with later registered claims receive any funds.

The establishment and nature of esihüpoteek can vary significantly depending on the specific jurisdiction's property and mortgage laws. It is a crucial concept for understanding the order of priority in real estate transactions and the security of different types of creditors. When acquiring property or lending money secured by real estate, it is essential to be aware of the existence and implications of any esihüpoteek.