EVERLEGAL successfully defended its client's interests in a mortgage dispute
EVERLEGAL successfully defended its client's interests in a mortgage dispute
The EVERLEGAL team successfully defended the rights of its client, who had lawfully acquired ownership of mortgaged property but was unable to exercise this right for an extended period due to the borrower's unlawful registration of minors at the mortgaged address.
Case Summary
The courts found that, after signing the mortgage agreement, the mortgagor—while not actually residing at the mortgaged property—registered their own residence and that of their underage children at the address of the mortgaged property.
At the time of concluding the mortgage agreement, however, the mortgagor had provided written assurance that the mortgaged property was not the only available place of residence for them or their family members.
The complexity of the case lay in the need to determine an effective legal remedy based on the actual nature of the disputed legal relationship, which did not involve eviction claims.
In March of this year, the Supreme Court issued a final ruling in the case, upholding the conclusions of the lower courts that there were sufficient grounds to satisfy the claims for termination of the right to use the property due to the unlawful acquisition of such right, and for deregistration of the place of residence. The Supreme Court confirmed the validity of the plaintiff’s chosen legal remedy and stated that the courts had correctly and effectively protected the plaintiff’s violated rights.
Importance of the Case
This case is significant in light of the recurring instances where borrowers and/or mortgagors engage in clearly bad-faith actions aimed at avoiding responsibility for failing to fulfill their obligations.
In this case, the Supreme Court once again emphasized that the registration of individuals in mortgaged property—if they were not registered at the time of the mortgage agreement and without the consent of the mortgagee—constitutes a violation by the mortgagor. Such actions should not restrict the rights of the mortgagee or create any legal rights for the newly registered individuals in relation to the mortgaged property.
EVERLEGAL team on the case includes counsel Yuliia Vorontsova, senior associate Anna Dvornikova, and former associate Maryna Dankevych.
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