A legal hypothec resulting from a judgment is the legal privilege that allows the party having won a judgment (for example, a judgment of the Small Claims Court, the Court of Québec or the Superior Court) to use the immovable of the losing party as security for the condemnation provided for in the said judgment.
Any person duly authorized to act for a syndicate of co-owners (for example, a director or manager) may initiate proceedings to register a legal hypothec of a syndicate of co-owners against a co-owner.
The owner who has defaulted for more than 30 days on the payment of his common expenses (which also include his share of the syndicate’s contingency fund) may be charged with a legal hypothec of a syndicate of co-owners.
Article 2730 of the Civil Code of Québec sets out the procedure for acquiring a legal hypothec resulting from a judgment:
Any creditor who has been ordered to pay a sum of money by a court having jurisdiction in Quebec may acquire a legal hypothec on the movable or immovable property of the debtor.
He acquires it by registering a notice designating the property encumbered by the hypothec and indicating the amount of the obligation and, in the case of an annuity or maintenance, the amount of the payments and, where applicable, the indexation index. The notice must be served on the debtor.
Thus, a legal hypothec resulting from a judgment is acquired only upon registration in the Land Register of Québec of a “Notice of Legal Hypothec” by the creditor against the immovable of the co-owner in default.
Notice of a legal hypothec resulting from a judgment must be served by bailiff on the debtor together with a copy of the judgment concerned (or an extract of the judgment in family matters).
Ultimately, if the debtor fails to pay the condemnation, the judgment creditor can apply for forced surrender of the defaulting debtor and sell the immovable in payment of the judgment. However, considering the serious consequences for a debtor of losing his property, it is common for a judgment to be satisfied before a creditor has to apply for forced surrender.
LEGAL HYPOTHEC RESULTING FROM A JUDGMENT
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Once your file has been submitted, Hypotek will take care of the rest. All that is left for you to do is wait for the debtor to send you the payment related to your claim.
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