Creditor benefits:
- out-of-court and court settlement of mortgage competition Article 20, paragraph 3,4
If the enforcement proposal is filed after the decision on the registration of the mortgage sales record has been issued, the enforcement creditor shall be deemed to have waived settlement by applying the mortgage.The enforcement officer, when submitting the enforcement proposal for the purpose of recording the entry in the real estate cadastre, will also, ex offo, order the deletion of the mortgage sale record.
- 72h dedline for cadastre to record the entry without exceptions, Article 155.
If the cadastre does not enter the record of the enforcement decision, it considers that the record has been entered within 72 hours from the receipt of the request.
The authority managing the cadastre of real estate after the expiry of this deadline can no longer decide on the request for entry of the record.
The provisions of other laws providing for derogation from this rule shall have no legal effect. This prevents the detrimental effect of certain provisions of special laws derogating from the 72-hour fiction rule.
- Lease agreement termination, Article 161.
The real estate lease agreement, which has not been entered in the real estate cadastre, after the sale of that real estate in the enforcement procedure shall be terminated, unless the lease agreement is written form of contract with notarized signatures, and dated before the earliest execution decision is issued.
- the debtor can no longer interfere with sightseeing of property, Artile 163.
if the debtor is not present or interferes with the viewing of the property, then the enforcement officer may open the locked room in the presence of two witnesses, and police assistance may be requested if necessary.
- Article 193.
thebuyer acquires the property right on the real estate on the day of the conclusion of the surrender (the original aquisition)
- movable items can be sold in public auction before enforceability of enforcement order Article 237.
it is stipulated that movable items may be sold before the enforceability of the enforcement order if the items are subject to rapid deterioration, or if there is a risk of a significant decrease in the value of the item. It is no longer required that the enforcement creditor lodge a guarantee for the damage that the enforcement debtor may suffer as a result of the earlier sale.
- Excerpts from the pledge register as an executive document is enforcable as any other executive document 255a
on the basis of excerpts from the pledge register as an executive document, the court may issue an enforcement decision. in that case, enforcement will be carried out on the pledged movable property to settle the monetary claim, in which case the execution shall be carried out in accordance with the provisions of the Law on Securities regulating execution for settlement of the monetary claim on movable property. Earlier jurisprudence had interpreted that only enforcement to seize liens could be enforced on the basis of this executive document.
- Electronic Public auction due dates, Article 394.
Starting March 1st 2020, public auction for the sale of immovable and movable property may also be organized in the form of electronic public bidding. Starting from September 1st 2020, public auction for the sale of immovable and movable property must be organized exclusively in the form of electronic public auction.
- Interest in executive document is included in enforcement procedure
if the executive document contains a decision on the costs of that procedure without interest, then the interest is implied in the enforcement, at the request of the creditor, from the date of enforcement of the executive document until the day of collection.
- Voluntary settlement procedure
A voluntary settlement procedure has been introduced, initiated at the proposal of the creditor, an executive or authentic document must be provided, which the enforcement officer will present to the debtor and indicate to him the benefits of voluntary debt settlement. If, within 60 days, the debtor does not respond, he is deemed to have refused to voluntarily repay. This procedure is not a prerequisite for initiating enforcement; there is an interruption of the limitation period within 60 days during the procedure
- The proportionality principle, article 151a
the proportionality principle requires the enforcement officer, ex officio or at the proposal of a party,to order the enforcement to be transfered on another real estate or other object of enforcent, if there is a clear disproportion between the amount of the claim of the enforcement creditor and the value of the real estate proposed by the enforcement creditor in the enforcement proposal and the other real estate, are sufficient to settle the enforcement creditor’s claim within a reasonable time.
For any additional questions regarding amendments to Law on Enforcement and Security, please contact Tihomir Vlaović, Živković Samardžić Dispute Resolution Associate , or any of your regular contacts at Živković Samardžić.