Detailed description
If you take out a loan, you can offer your property as collateral to the creditor (the person from whom you receive the money) to secure the loan amount and have a mortgage or land charge (so-called land liens) registered in the land register in his or her favor.
If you do not repay the loan, the mortgaged property can be auctioned off by way of a forced sale. Your creditor will get his money back from the proceeds.
In practice, the land charge has prevailed over the mortgage because the mortgage secures a specific claim (a specific loan), while the land charge can be used as security for new loans as often as desired, but only up to the registered amount of the land charge.
You as the owner and, for example, a lending bank therefore regulate in a further contract (the so-called security agreement) which claims are to be secured by the mortgage. Before you sign a security agreement, you should find out about its exact scope and, if necessary, seek legal advice.
Mortgages must be registered in the land register. The mortgage can be registered with a notary. You can submit the declarations required for the registration of a mortgage there. The notary prepares the documents, explains the often very complicated clauses and ensures that the entry in the land register is correct.