Article 8. Consequences of violation of the rules on alienation of mortgaged immovable property of the Law on Mortgage of Immovable Property

Home / RLA / Article 8. Consequences of violation of the rules on alienation of mortgaged immovable property of the Law on Mortgage of Immovable Property

1. In case of alienation of immovable property pledged under a mortgage agreement in violation of the rules contained in paragraph 2 of Article 315 of the Civil Code of the Republic of Kazakhstan, the mortgagee has the right, at his discretion, to demand:

1) recognition of the transaction on alienation of mortgaged immovable property as invalid;

2) early fulfillment of the main obligation and foreclosure of mortgaged immovable property, regardless of who owns it.

In the latter case, if it is proved that the acquirer of the mortgaged immovable property at the time of its acquisition knew or should have known that the immovable property was being alienated in violation of the rules, such acquirer bears responsibility within the limits of the value of the specified immovable property for non-fulfillment of the obligation secured by the mortgage jointly with the mortgagor.

2. When the mortgagor issues a mortgage certificate, alienation of mortgaged real estate is not allowed.

Upon alienation of immovable property by him, the consequences provided for in paragraph 1 of this Article shall occur.

The Law of the Republic of Kazakhstan dated December 23, 1995.

President

Republic of Kazakhstan

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