CASE LAW NO.11/2017/AL ON RECOGNITION OF THE MORTGAGE AGREEMENT ON LAND USE RIGHTS WITH PROPERTY ON

Situation 1:

A party mortgages its land use rights and the assets attached to such land lot owned by it in order to secure the performance of its civil obligations, however, there is other property owned by a person other than the mortgagor on such land; the form and content of the agreement in accordance with the law.

Solution 1:

In this case, the court must determine that the mortgage agreement is valid.

Situation 2:

The mortgagor and the mortgagee agree that the mortgagee is allowed to sell the secured assets, i.e. land use rights over a land lot having a house not owned by the land user (mortgagor).

Solution 2:

When the court settles the case, it must reserve for the owner of the house priority to receive the transfer of such land use rights if it has a demand.

Link PDF: CASE LAW NO.11/2017/AL

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