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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