A real security, granted for

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

The situation

A real security, granted to secure the debt of a third party, not implying any personal undertaking by the grantor of that security to satisfy another's obligation, the beneficiary of such security cannot bring an action for payment against the grantor, who is not his debtor, and, not having acquired the status of creditor, he is not subject to the stay or prohibition of enforcement proceedings which, pursuant to the first of the above-mentioned texts, result from the opening of collective insolvency proceedings against the grantor. Consequently, in order to realise the immovable property subject to the security, he may pursue or commence foreclosure proceedings against the grantor, after joining the administrator and the creditors' representative.

What the law says

This decision confirms the fundamental principles of property law.

Key points to note

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

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