Börsenlexikon: Mortgage

A property or co-ownership share can be encumbered with a mortgage, so that a certain sum of money is to be paid from the property to the entitled person (mortgagee) on account of a claim to which he is entitled when the security event occurs. The heritable building right can also be mortgaged. The mortgage does not grant a right of possession to the property; it is strictly accessory, i.e. it always presupposes the existence (value date) of the claim which it is intended to secure. The mortgage debtor and the debtor of the secured claim need not be identical. The mortgage is created by agreement between the creditor and the owner of the property and entry in the land register.