The Eurohypothec can be defined as a "common mortgage for Europe"; that is, a common

mortgage A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any pu ...

instrument to secure loans transnationally and European-wide. Another (but improper) way in calling it is "Euromortgage". It is currently a research project undertaken by several researchers European-wide. The Eurohypothec has appeared for the first time in an official document of

the European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...

in the Green Paper about the Mortgage Credit in the EU and has found a degree of acceptance among the European mortgage market stakeholders, scientific authors and authorities.

History

The Eurohypothec idea was already conceived by Prof. Claudio Segré during the 1960s and was further developed by other institutions like the International Union of Latin Notaries, until our days in which researchers like Dr. Wehrens and Dr. O. Stöcker have pushed forward the idea.

Objectives

The objective of the Eurohypothec is to create a pan European, flexible and secure mortgage instrument that allows as many businesses as possible in a trans-national way: syndicated loans, securitisation, efficient covered/mortgage bonds business, etc. It also brings advantages to mortgagors, who would be able to change their credit institutions more efficiently, fast and cheaply.

Model

The model has been developed by a pool of researchers and practitioners, mainly devoted to

private law Private law is that part of a civil law legal system which is part of the ''jus commune'' that involves relationships between individuals, such as the law of contracts and torts (as it is called in the common law), and the law of obligations ( ...

matters and the result was condensed in the so-called "Basic Guidelines for a Eurohypothec", which were published in Warsaw in 2005. Its main features are: * Right

in rem ''In rem'' jurisdiction ("power about or against 'the thing) is a legal term describing the power a court may exercise over property (either real or personal) or a "status" against a person over whom the court does not have ''in personam'' jurisdi ...

to secure one or more obligations/loans between the borrower and the same or different lenders. * It does not substitute national mortgages. * No need of obligation/loan to exist. * It may secure as many obligations/loans as mortgagor and mortgagee want to. * Contractual relationship between the mortgage and the credit/loan through a so-called "security agreement" The Basic Guidelines model has helped to develop the changes in mortgage law legislation in France (2007) and the Law Project in Spain (2007). Related instruments to the Eurohypothec are the Eurotrust and the Eurotitle.

References

* NASARRE-AZNAR, Sergio, "Eurohypothec & Eurotrust. Two instruments for a true European mortgage market after the EC White Paper 2007 on the Integration of EU Mortgage Credit Markets", Zentrum für Europäische Rechtspolitik, University of Bremen (Germany), 200

* NASARRE-AZNAR, Sergio, “The Eurohypothec: a common mortgage for Europe”, The Conveyancer and Property Lawyer (

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...

), Thomson-Sweet & Maxwell, January–February 2005, pp. 32 a 52. * NASARRE-AZNAR, Sergio and STÖCKER, Otmar, “Eurohypothec and Eurotrust. Future elements of a pan-European mortgage market” in “Innovation in securitisation. Yearbook 2006”, Jan Job de Vries Robbé and Paul Ali (coords.), The Hague, 2006, Ed. Kluwer Law International. * NASARRE-AZNAR, Sergio, "Looking for a model of the Eurohypothec", European University Institute, 200

{Dead link, date=August 2019 , bot=InternetArchiveBot , fix-attempted=yes * SOERGEL/STÖCKER, “EU-enlargement in

Eastern Europe Eastern Europe is a subregion of the Europe, European continent. As a largely ambiguous term, it has a wide range of geopolitical, geographical, ethnic, cultural, and socio-economic connotations. The vast majority of the region is covered by Russ ...

and dogmatic

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questions – Causality, accessoriness and security purpose, Notarius International 2002. * STÖCKER, Otmar, "The Euromortgage - does Europe need just one mortgage collateral? Mortgage Finance Gazette, 2005. * WATT, Gary, "The Eurohypothec and the English mortgage", (2006) 13(2) Maastricht Law Journal 173-193. Mortgage Economy of Europe