The Law on Amendments to the Law on Mortgage August 17, 2015 On July 07, 2015 the National Assembly of the Republic of Serbia adopted the Law on Amendments to the Law on Mortgage. The adopted amendments regulate the issue of extrajudicial sale of mortgaged property, which provides either public auction or sale of real estate through direct settlement. It is anticipated that the real estate, can be sold by direct negotiation, before publishing a call for holding the auction, but for a value that cannot be lower than 90 percent of the estimated value. Among the adopted amendments there is one that stipulates that the creditor has the right to require additional collateral of a similar level of security from the debtor if the value of the mortgage is reduced due to the behavior or actions of the owner, and in the event that the debtor fails to provide additional collateral, the creditor is entitled to demand payment of the entire receivables from the value of the real estate without delay. Particular reasons for amendments to the Law on Mortgage are: Uneven practices concerning judicial and material jurisdiction for the enforcement on the basis of executive extrajudicial mortgage The lack of reliable and quick extrajudicial sale of mortgage real estate Different interpretation of the provisions of the Law on Mortgage in 2005 Obsolete need for provisions governing the Central Registry of mortgages. The reason for the adoption of this law is a need to raise a higher degree of legal and economic security in the area of securing claims by placing mortgage on real estate as well as all participants (both during establishing, as well as during the eventual realization of mortgage). The proposed amendments allow equal treatment of both lawful procedure for the protection of the creditor and the enforcement of their claims (trough court as well as amicably).
