REAL ESTATE LIENS AS SECURITY FOR CROSS-BORDER PROPERTY FINANCE THE EUROHYPOTHEC – A SECURITY INSTRUMENT WITH REAL PROSPECTS.

Abstract

Complex property transactions and financing - e.g. portfolio finance and structuring - require flexible modern real estate liens. This is certainly the case at national level, but even more so in cross-border transactions. The expansion of pan-European diversified mortgage credit portfolios - and their transfer to other banks or refinancing vehicles - is a huge challenge that unfortunately is all too often not mastered at all, or at least not at reasonable expenses. The Eurohypothec and the Eurotrust might be a feasible means of doing this. The first concrete proposals are already on the table. Academics and practitioners in Europe are being called upon to participate in this work. Although it might take some time for such legal instruments to be developed at European level the work is certainly not being done in vain. Work done on the principles of mortgage law in Europe can at least make a definite contribution towards improvements at national level, as demonstrated by some encouraging examples in Central and Eastern Europe.