The Paulian action may be brought

This decision provides important insight into your real estate law. Here is what it changes for you.

The situation

The Paulian action may be brought by the mortgagee even where the debtor is not insolvent, provided that through the fraudulent act complained of, the debtor has reduced the value of the encumbered assets and thereby reduced the effectiveness of the security interest. This is the case where the debtor transfers to a third party a property encumbered with a charge in favour of a lender of money and a contractual mortgage, while reserving for himself a life interest of use and occupation.

What the law says

This decision confirms the fundamental principles of property law.

Key points to note

• Strictly comply with the legal time limits for appeals
• Keep all your supporting documents (title deeds, deeds, correspondence)
• Plan ahead: preventive advice always costs less than litigation

For an analysis of your situation: 30-minute consultation at €45 with Maître Zakine.