The Possessor's Liability in Mortgage Insurance - a Study in UAE Civil Transactions Law

Abstract

This research project tackles the issue of the responsibility to the holder/possessor of the mortgage insurance in maintaining the rights of creditors both before and after the payment deadlines. This is for the reason that before the deadline, the mortgaged property belongs to the holder/possessor, and is not to be confiscated. The holder/possessor has the right to use his property and exploit and manage it on condition that does not affect the mortgaged property value or subject it to destruction or damage and thereby cause damage to the rights of the mortgage. If the holder/possessor is proven to cause that and not guarantee the safety of the mortgage, the mortgagee shall have an objection to such acts and ask the court to stop it and to take all precautionary measures. But if the deadline for repayment was over, and the debtor proves incapable to pay, the creditor should have the right to deduct his debt from the price of the mortgaged property in accordance with the implementation procedures prescribed by the law. Also, he should have the right, in case mortgage money ownership has shifted to somebody else, to track the property’s ownership in order to get his money back from the price of the mortgaged property, and this is through selling it at auction.