Lénaskráning

Lénaskráning, or "loan recording," refers to the process of officially documenting a loan agreement in Icelandic law. This practice is primarily associated with the recording of personal loans, particularly those secured by real estate, such as mortgages. The term originates from the Icelandic word *lén*, meaning "loan," and *skráning*, meaning "recording" or "registration."

In Iceland, loan recording is governed by the Land Registry Act (*Landsrekkjarskráarlög*), which ensures transparency and legal protection for both lenders and borrowers. When a loan is secured by property, it must be recorded in the Land Registry (*Landsrekkjarskráin*) to establish a legal claim against the asset. This prevents third parties from acquiring the same property with a superior claim, thereby safeguarding the lender’s interests.

The process involves submitting the loan agreement, along with relevant documentation such as property deeds and identification, to the Land Registry. Once recorded, the loan appears in the public registry, making it accessible to potential buyers or creditors. This step is crucial for validating the loan’s validity and priority in case of default or property transfer.

While primarily used for real estate-backed loans, lénaskráning can also apply to other secured transactions, though its most common application remains in mortgage lending. The practice aligns with broader legal principles of property rights and financial security, ensuring clarity in ownership and debt obligations.