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GlossaryCredit

Mortgage

Short definition

Legal guarantee taken by bank on real estate to secure credit repayment.

Detailed definition

Mortgage is real security guaranteeing credit repayment. If borrower defaults, bank can auction property to recover. Mortgage registered at Land Conservation (public service). Registration fees ≈ 1.5% of credit amount. Doesn't prevent use or sale (bank agreement required).

Concrete example

800,000 MAD mortgage: mortgage fees ≈ 12,000 MAD to pay to notary at signing. Registration valid 20 years, renewable.

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