Legal Glossary
A
Address for Service (Art. 3062)
(1) A requirement that the mortgagor and mortgagee, upon request by an interested party, provide an address for legal service at the court’s location. (2) If they fail to do so within one month, the court designates a valid service location.
Assignment of Right (Art. 3127)
A restriction prohibiting the creditor from leasing the immovable or transferring their antichresis rights to a third party without the consent of the person who created the antichresis.
Assimilation to Suretyship (Art. 3090)
A rule allowing the acquirer of a mortgaged immovable to invoke the rights of a guarantor under the Title of this Code on “Contracts in General” in their dealings with the mortgagee.
C
Capital of Claim (Art. 3076)
A principle ensuring that the mortgage secures the mortgagee’s preferential payment of the registered principal amount of the claim, giving them priority over other creditors in the distribution of proceeds from the mortgaged immovable.
Claim Secured by Mortgage (Art. 3046)
(1) The debt or obligation a mortgage secures, which can be existing, future, conditional, contingent, or embodied in a negotiable instrument (e.g., to order or bearer). (2) It represents the financial commitment the mortgage protects.
Conditions for Creating Mortgage (Art. 3049)
(1) The legal prerequisites for a valid mortgage, allowing creation by the debtor or a third party. (2) The creator must have disposal rights over the immovable—for consideration if securing their own debt, or gratuitously if securing another’s.
Consent of Creditors to Payment (Art. 3070)
(1) A requirement that all registered mortgagees must agree before insurance, expropriation, or damage compensation is paid to the mortgagor. (2) The mortgagor must inform all registered creditors of the compensation details and payer. (3) Creditors are deemed to consent if they do not object within 30 days of receiving this information.
Contract Relating to Land (Art. 3126)
A rule granting the creditor direction over agricultural works on land secured by antichresis, unless the contract specifies otherwise.
Costs of Attachment Proceedings (Art. 3079)
A rule ensuring the mortgagee’s preferential repayment, ahead of other creditors, for standard costs arising from legal proceedings they initiate to attach the mortgaged immovable.
Costs of Registration (Art. 3054)
(1) The fees and expenses of mortgage registration, borne by the debtor. (2) Advances for useful purposes by another party must be reimbursed by the debtor.
Costs of Sale by Auction (Art. 3103)
(1) A provision assigning auction costs to the purchaser if the sale price exceeds the offered amount by 10 percent. (2) Otherwise, rejecting creditors bear the costs.
Creation of Antichresis (Art. 3118)
A principle stating that, unless modified by Art. 3119, the rules for creating mortgages in this Title apply to establishing an antichresis contract.
Creation of Rights in Rem (Art. 3088)
(1) A rule permitting the mortgagor to establish additional rights in rem (e.g., usufruct, servitudes, or further mortgages) on the mortgaged immovable. (2) Any provision prohibiting this is ineffective.
Creditor Preventing Subrogation (Art. 3113)
A provision allowing cancellation of a mortgage registration on an immovable not owned by the debtor if the creditor’s actions prevent the owner from being subrogated to the creditor’s rights.
Creditors Registered on Same Day (Art. 3082)
A provision stating that creditors whose mortgages are registered on the same day share equal priority and receive payment from the proceeds in proportion to the amounts of their claims.
Curator Appointment (Art. 3063)
A provision allowing the court, upon an interested party’s request, to appoint a curator for a creditor whose identity or residence is unknown, when their presence is legally required for urgent decisions.
D
Definition of Antichresis (Art. 3117)
A contract whereby the debtor agrees to deliver an immovable to the creditor as security for fulfilling their obligations, allowing the creditor to use the property in lieu of interest.
Delivery of Immovable (Art. 3121)
(1) A requirement that the person creating the antichresis deliver the immovable and its accessories to the creditor or a designated third party. (2) Until delivery or after return, the antichresis has the same legal effects as a mortgage.
Differences for Guarantor (Art. 3108)
(1) A limitation preventing the guarantor from suing the seller for warranty if the immovable is attached in their hands. (2) The guarantor cannot demand discontinuation of attachment proceedings against them. (3) They are also barred from offering to redeem the mortgage.
E
Effect of Cancellation (Art. 3115)
(1) A rule stating that cancellation benefits creditors with registrations subsequent to the canceled entry. (2) The owner cannot create a new mortgage to replace the canceled one.
Effect of Registration (Art. 3058)
(1) The legal enforceability of a mortgage registration, lasting ten years from the entry date. (2) Renewal before expiration extends its effect, with a new ten-year term starting from the renewal entry date.
Effect on Original Debtor (Art. 3086)
(1) A provision stating that transferring the mortgaged immovable does not alter the original debtor’s obligations. (2) The original debtor is released if the new owner assumes the debt, unless the mortgagee notifies them in writing of continued liability within one year of learning of the agreement. (3) Failure to notify within this period forfeits the mortgagee’s right to hold the original debtor liable.
Extinction of Antichresis (Art. 3130)
A rule applying the Title’s provisions on mortgage extinction and registration cancellation to the termination of an antichresis contract.
Extinction Principle (Art. 3109)
(1) A principle stating that a mortgage ceases to exist when its registration is canceled in the registers of immovable property. (2) Cancellation follows the procedures outlined in the Title of this Code on “Registers of Immovable Property” (Art. 1630–1636).
I
Immovable Mortgage Specification (Art. 3048)
(1) A detailed identification required in the mortgage act, clearly specifying the immovable involved. (2) It must include the commune, nature of the property, and, if applicable, its cadastral survey number, or at least two boundaries in non-cadastral areas.
Increase of Claim (Art. 3056)
(1) A prohibition on increasing the secured claim amount through correcting the original entry. (2) A new registration is needed for any additional amount not initially covered.
Indemnities Charged by Mortgage (Art. 3069)
(1) A principle extending the mortgage to insurance compensation or damages for loss or deterioration of the immovable. (2) It also covers compensation for expropriation of the immovable.
Indivisibility of Mortgage (Art. 3087)
(1) A principle declaring that a mortgage remains whole and indivisible. (2) If part of the immovable is sold or divided, each portion continues to secure the full debt amount.
Improvements and Buildings (Art. 3066)
A principle extending the mortgage to any improvements, buildings, plantations, and crops added to the mortgaged immovable after its creation.
Instrument Creating Mortgage (Art. 3045)
(1) The written legal document required to formalize a mortgage, detailing its terms to be effective. (2) It must specify the claim amount in Ethiopian currency to be valid.
Interest on Claim (Art. 3124)
(1) A rule stating the creditor pays no rent to the creator of the antichresis. (2) The creditor’s use of the immovable and its fruits or profits substitutes for interest on the secured claim. (3) Any clause allowing additional interest is void.
Interest Secured by Mortgage (Art. 3077)
(1) A rule providing that the mortgage secures the mortgagee’s preferential payment of interest on the claim at the rate specified in the mortgage registration. (2) This preferential right extends to an amount not exceeding two years’ interest. (3) The registration cannot stipulate a longer interest period for preferential payment.
Irrevocability of Offer (Art. 3100)
(1) A rule binding the acquirer to their redemption offer for 60 days. (2) Withdrawal within this period requires consent from all recipients.
Intrinsic Elements and Accessories (Art. 3064)
(1) A rule stating that a mortgage encompasses the mortgaged immovable, its intrinsic elements, and accessories. (2) Objects explicitly listed as accessories in the mortgage act are deemed as such. (3) This presumption can be rebutted with evidence.
J
Judicial Mortgage (Art. 3044)
(1) A mortgage created by a court or arbitration tribunal to enforce its judgments, orders, or awards, attaching to one or more immovables owned by the debtor. (2) The judgment must specify the secured claim amount and the affected immovable(s).
Jurisdiction for Legal Proceedings (Art. 3061)
A provision assigning exclusive jurisdiction over actions related to mortgage registration or the sale of a mortgaged immovable to the court in the location where the immovable is situated.
L
Legal Interest (Art. 3080)
(1) A principle that interest at the statutory rate accrues on the amounts specified in Art. 3076–3079 (capital, interest, expenses, and costs) from the date the immovable is attached. (2) The mortgage secures this interest payment until the immovable is sold by auction following attachment.
Legal Mortgage of Co-Partitioner (Art. 3043)
(1) A statutory mortgage granted to a co-partitioner on immovables allotted to other co-partitioners under a partition act. (2) This secures cash compensation or other payments owed, including for dispossession of property allocated during partition.
Legal Mortgage of Seller (Art. 3042)
A statutory mortgage automatically granted to the seller of an immovable, securing the payment of the agreed purchase price and any other obligations outlined in the sale contract.
Liability for Loss or Deterioration (Art. 3092)
(1) A provision exempting the acquirer from liability to the mortgagee for loss or deterioration of the immovable. (2) Liability arises only if the loss or deterioration results from the acquirer’s fault or negligence after notification of attachment proceedings.
Loss or Deterioration by Guarantor (Art. 3107)
(1) A provision allowing the mortgagee to demand new securities if the guarantor intentionally or negligently reduces or endangers the mortgaged immovable’s value. (2) This right extends to cases where a third party acquiring the immovable from the guarantor causes such reduction or endangerment.
M
Manner of Registration (Art. 3053)
(1) The prescribed procedure for entering a mortgage in the registers, per the Title on “Registers of Immovable Property” (Art. 1587–1601). (2) Corrections or alterations follow the same Title’s rules (Art. 1621–1627).
Mortgage Creation (Art. 3041)
The process of establishing a legal claim on an immovable as security for a debt or obligation, which may arise from statutory law, a court judgment, or a contractual agreement between parties.
Mortgage of Bare Ownership (Art. 3072)
A rule stating that a mortgage on the bare ownership of an immovable extends to full ownership upon the extinction of any usufruct, enhancing the mortgagee’s security.
Mortgage of Usufruct (Art. 3111)
(1) A right for any interested party to demand cancellation of a mortgage on a usufruct when the usufruct expires. (2) The usufructuary cannot renounce the usufruct to the detriment of the mortgagee.
N
No Duty to Furnish Premises (Art. 3125)
A provision relieving the creditor of any obligation to equip or furnish the immovable while in possession under the antichresis.
O
Offer to Redeem (Art. 3099)
A requirement that the acquirer intending to redeem serve a document on registered creditors and the seller, specifying: (a) their title and registration date; (b) immovable details; (c) purchase price or estimated value if gratuitous; (d) an offer to pay this amount; (e) a list of mortgages, creditors, amounts, and dates; and (f) an address for service at the court’s location.
Ownership Evidenced by Title Deed (Art. 3051)
(1) A rule validating a mortgage when created by the immovable’s owner as evidenced by a title deed from competent authorities. (2) It holds even if the underlying act is invalidated, unless bad faith is proven, with compensation from an insurance fund funded by title deed fees.
P
Preferential Rights Principle (Art. 3059)
(1) A principle granting the mortgagee priority over other creditors to be paid from the proceeds of a mortgaged immovable’s sale when attached by the mortgagor’s creditors. (2) If the mortgagor sells the immovable, the mortgagee can attach it in the hands of a purchaser whose rights were registered after the mortgage. (3) The mortgagee retains all rights of an ordinary creditor in addition to these preferential rights.
Prior Rights of Contractors and Suppliers (Art. 3067)
(1) A provision granting contractors and suppliers who contributed to improvements, buildings, plantations, or crops priority over mortgagees for sale proceeds covering their costs. (2) Disputes over amounts are resolved by the court, which also determines distribution among them if necessary.
Prohibited Provisions (Art. 3060)
(1) A rule voiding any contractual clause allowing the creditor to appropriate or sell the immovable without legal formalities after the debt is due, even if agreed post-mortgage creation. (2) However, provisions may permit the mortgagor to transfer ownership to the mortgagee after the debt matures.
Property Liable to Mortgage (Art. 3047)
(1) The immovable property designated as security for a mortgage, excluding movables unless permitted by specific provisions of this Code or special laws. (2) Only immovables are typically subject to this restriction.
Presumption of Limited Liability (Art. 3105)
A presumption that a guarantor who mortgages their immovable to secure another’s debt is not personally liable beyond that immovable unless otherwise specified.
R
Ranking of Multiple Creditors (Art. 3081)
(1) A rule establishing that when multiple creditors hold registered claims on the same immovable, their priority is determined by the date of registration of their respective mortgages. (2) The dates when their claims became certain or enforceable are irrelevant to this ranking.
Reduction in Value Due to Mortgagor (Art. 3073)
(1) A provision allowing the mortgagee to demand new securities if the mortgagor intentionally or negligently reduces or endangers the immovable’s value. (2) If the mortgagor fails to provide these within a reasonable time set by the mortgagee, the latter may demand partial debt repayment.
Reduction in Value Due to Third Party (Art. 3074)
A rule permitting the mortgagee to exercise the same rights as in Art. 3073 against the mortgagor if a third party acquiring the immovable from them reduces or endangers its value.
Reduction in Value – Other Cases (Art. 3075)
A limitation preventing the mortgagor from demanding new securities or partial debt repayment when the immovable’s value reduction or risk stems from causes unrelated to the mortgagor’s or a third party’s actions as per Art. 3073 and 3074.
Reduction of Claim (Art. 3055)
(1) A debtor’s right to update the mortgage entry when one-fourth of the debt is repaid, with creditor consent required. (2) Partial repayment does not release any portion of the immovable.
Redemption of Mortgage (Art. 3098)
A right for the acquirer, if not personally liable for the debt, to redeem the mortgage by paying off the secured claim to free the immovable.
Registration Necessity (Art. 3052)
A requirement that a mortgage be recorded in the registers of immovable property at the property’s location to have legal effect against third parties, regardless of its origin.
Rejection of Offer (Art. 3102)
(1) A rule mandating a public auction of the immovable if a creditor rejects the redemption offer. (2) Rejecting creditors must advance the auction costs.
Relations Between Parties (Art. 3120)
A provision applying, unless otherwise specified, the Code’s rules on lessor-lessee or lessor-farmer-tenant relationships to the interactions between the debtor and creditor under an antichresis contract.
Relations with Third Parties (Art. 3129)
A provision applying the Title’s rules on mortgage registration and effects to the interactions between the antichresis creditor and third parties.
Renunciation of Mortgage (Art. 3112)
(1) A rule requiring the mortgagee’s renunciation of the mortgage to be explicit and in writing to be effective. (2) Unless otherwise agreed, this renunciation does not imply the mortgagee relinquishes their underlying claim.
Repairs Under Antichresis (Art. 3123)
A provision exempting the person creating the antichresis from any obligation to perform repairs on the immovable during the creditor’s possession.
Right of Mortgagee to Attach (Art. 3085)
A rule allowing the mortgagee, who registered their mortgage before the transfer of ownership was registered, to attach the immovable in the hands of the new owner to enforce their claim.
Right to Transfer Ownership (Art. 3084)
(1) A principle preserving the mortgagor’s right to transfer ownership of the mortgaged immovable despite the mortgage. (2) Any contractual provision restricting this right is void.
Rights of Creditor Over Subsequent Rights (Art. 3089)
(1) A provision ensuring that rights in rem registered after the mortgage do not impair the mortgagee’s rights. (2) The mortgagee can force the sale of the immovable as if these later rights did not exist. (3) Upon attachment, a beneficiary of a prior-registered right in rem can claim its value ahead of creditors with later-registered mortgages.
Rights of Mortgagor to Compensation (Art. 3071)
(1) A right for the mortgagor to claim compensation up to 1,000 Ethiopian dollars without restriction. (2) They may claim any amount if they commit to using it to rebuild or repair the immovable, providing sufficient sureties or securities. (3) Alternatively, they can request payment to a court-appointed trustee.
Rights of Third Parties (Art. 3065)
(1) A limitation preventing the mortgagee from enforcing rights on intrinsic elements or accessories separated from the immovable and transferred to a third party. (2) In such cases, the mortgagee may only pursue rights under Art. 3073, 3074, and 3107.
Rent Under Mortgage (Art. 3068)
(1) A rule applying the mortgage to rent accrued from the mortgaged immovable starting from the date of its attachment. (2) Lessees and farmer-tenants cannot validly pay rent to the owner after attachment notification.
S
Sanction for Invalid Mortgage (Art. 3050)
(1) The consequence rendering a mortgage void if created by someone without disposal authority under Art. 3049. (2) It remains invalid even if authority is later acquired and is ineffective for future immovables.
Special Rules for Antichresis (Art. 3119)
(1) A rule limiting antichresis creation to contracts only, excluding statutory or judicial origins. (2) It cannot secure claims embodied in negotiable instruments (e.g., to order or bearer). (3) A bare owner of an immovable cannot create an antichresis.
Subrogation by Payment (Art. 3083)
(1) A right allowing any mortgagee to pay off a higher-ranking creditor, either with that creditor’s consent or without it if the immovable is attached at the latter’s request. (2) The paying creditor is then subrogated to the rights of the creditor they paid, inheriting their priority position.
Subrogation Rights (Art. 3095)
(1) A provision granting the acquirer subrogation to the mortgagee’s rights if the immovable is attached in their hands. (2) This subrogation cannot harm third parties who acquired immovables for consideration from the debtor or guarantor to secure the debt.
T
Time for Making Entry (Art. 3057)
(1) A deadline rendering a mortgage entry void if made after a third party not liable for the debt registers their rights. (2) It is also void post-attachment registration or mortgagor bankruptcy.
Time for Making Offer (Art. 3104)
A restriction prohibiting a redemption offer after attachment proceedings are initiated and recorded in the registers of immovable property.
U
Unilateral Termination of Antichresis (Art. 3128)
(1) A right for the creditor to renounce their antichresis at any time. (2) Unless otherwise agreed, the creator can terminate it by fulfilling the secured obligation at any time.
W
Warranty Against Defects (Art. 3122)
(1) A rule stating the immovable is delivered in its condition at the contract’s formation. (2) The creator provides no warranty against defects. (3) Liability arises only for undisclosed defects known at the time that seriously endanger the life or health of the creditor, their household, or employees.