Title II: Security interests

The property is, ipso jure, purged of the droit de suite attached to the mortgage in the cases provided for by law, in particular the sale on seizure of property, expropriation for public utility or the situations provided for in Books VI of the code de commerceor VII of the code de la consommation.

The mere publication at the service responsible for land registration of deeds transferring ownership does not purge the mortgages established on the property. The seller only transfers to the purchaser the ownership and rights that he himself had over the thing sold: he transfers them under the assignment of the same mortgages with which the thing sold was encumbered.

Where, on the sale of a mortgaged immovable, all the registered creditors agree with the debtor that the price will be applied to the total or partial payment of their claims or some of them, they exercise their preferential right over the price and they may enforce it against any transferee as well as against any creditor seizing the price claim. By the effect of this payment, the immovable is…

Failing the agreement provided for in the preceding article, the third party purchaser may, once the sale has been published, purge the property of the right of pursuit attached to the mortgage. He must, either before the proceedings, or within one month of the first summons to pay made to him, notify the registered creditors of a deed in which he states that he is prepared to pay the mortgage…

Any registered creditor may, within forty days of the notification made to him, request the sale of the immovable by public auction, provided that he outbids by one tenth on the stipulated price or on the declared value, and that he provides security to the due amount.

The claimant creditor may not by his withdrawal, and even if he offers to pay the higher bid, prevent the public auction, unless all the other registered creditors consent. .

If no creditor requests the auction within the prescribed time and form, the value of the property is definitively fixed at the stipulated price or the declared value. The property is consequently released from all mortgages by the payment of this sum to the registered creditors, or by its deposit.