Pandiõigust

Pandiõigust, meaning mortgage law or pledge law in Estonian, refers to the legal framework governing the creation, registration, and enforcement of mortgages and pledges in Estonia. It is a significant part of Estonian property and civil law, providing security for creditors by allowing them to take possession of specific assets belonging to a debtor if the debt is not repaid.

The core of pandiõigust lies in the concept of collateral. This collateral can be various types of property, including real estate (such as land and buildings), movable property (like vehicles or machinery), or even intangible assets like intellectual property rights. The specific rules and requirements for creating a valid pledge vary depending on the type of asset being pledged.

For real estate, pandiõigust is closely tied to the Estonian Land Register. A mortgage over real estate is established by registration in the Land Register, making the security interest publicly known and legally binding. This registration provides the creditor with a priority claim over the property in case of default.

When a debtor fails to meet their obligations, the creditor can, according to the terms of the pledge agreement and the law, initiate enforcement proceedings. This typically involves selling the pledged asset to recover the outstanding debt. The procedures for enforcement are regulated by law to ensure fairness to both the debtor and the creditor.

Pandiõigust plays a crucial role in facilitating credit transactions, enabling individuals and businesses to access financing by offering security. It contributes to the stability of the financial system by providing a reliable mechanism for creditors to protect their interests. The legal framework aims to balance the rights of creditors seeking security with the rights of debtors regarding their property.