Jelzálogjoggal

Jelzálogjoggal refers to a form of security interest in Hungarian law. It is a right granted to a creditor over a debtor's property to secure the fulfillment of an obligation. This means that if the debtor fails to repay the debt, the creditor has the right to enforce their claim against the specific property that serves as collateral.

There are two main types of jelzálogjoggal: ingatlan-jelzálog (mortgage) and ingó-jelzálog (pledge). An ingatlan-jelzálog is typically established over real estate, such as land or buildings. An ingó-jelzálog, on the other hand, is established over movable property, like vehicles, machinery, or inventory.

The creation of a jelzálogjoggal requires a formal agreement between the debtor and the creditor, often documented in a written contract. For real estate mortgages, registration in the Land Registry is usually necessary for the security interest to be legally effective against third parties. For movable property pledges, possession of the asset by the creditor or registration in a specific registry may be required depending on the type of property.

The purpose of jelzálogjoggal is to provide the creditor with a stronger position and reduce the risk of loss in case of default. It allows creditors to lend money more readily, as they have a tangible asset to fall back on. The debtor, in turn, can use their property to secure financing that they might otherwise not be able to obtain.