Varuõigused

Varuõigused, often translated as "security rights" or "collateral rights" in English, are legal instruments that provide a creditor with a claim on a debtor's asset(s) to secure the repayment of a debt or the fulfillment of an obligation. These rights are established to reduce the risk for the creditor, ensuring that if the debtor defaults, the creditor has a legal means to recover their losses.

There are various types of varuõigused, including mortgages (hüpotek) on real estate and pledges (pandiregister) on movable property. A mortgage grants the creditor rights over immovable property, such as land and buildings, while a pledge involves the transfer of possession or control of movable assets, like vehicles, inventory, or financial instruments, to the creditor or a third party. The specific form and registration requirements for these rights vary depending on the nature of the asset and the applicable laws of the jurisdiction.

The creation of a varuõigus typically involves a contract between the debtor and the creditor, outlining the terms of the security. For certain types of assets, such as real estate or registered vehicles, formal registration in a public registry is necessary to make the security right legally effective against third parties. This registration provides public notice of the creditor's claim.

In the event of a debtor's default, the creditor holding a varuõigus has the right to enforce their security. This usually involves seizing and selling the secured asset(s) through a legally prescribed procedure, such as foreclosure or auction. The proceeds from the sale are then used to satisfy the debt owed to the creditor. If the sale proceeds exceed the amount of the debt, any surplus is typically returned to the debtor.