Financing a property is a complex process that involves numerous technical terms. Key among these are the _land register_, _land charge_, and _mortgage_, which play a central role in property financing. Although often mentioned together, they have distinct meanings. This article explains these important terms in home financing for you.

1. Land Register

The land register is a public record maintained by the local court. It contains all essential information about a property, such as ownership details, encumbrances, and restrictions (e.g., easements), as well as mortgages and land charges. Each property has its own land register sheet, divided into several sections:

• Section I: Lists the property owner(s).

• Section II: Includes encumbrances and restrictions, excluding liens.

• Section III: Contains liens such as mortgages and land charges.

2. Land Charge

A land charge is a type of lien used to secure loans. Unlike a mortgage, it is not tied to a specific debt. This means the land charge remains in effect even after the loan is repaid and can be reused for another loan. A specific monetary amount is registered in the land register, for which the property serves as collateral. If you default on payments, the creditor has the right to enforce the sale of the property to recover their claim.

3. Mortgage

A mortgage is also a lien but is directly tied to a specific debt. This means the mortgage automatically expires once the associated debt is fully paid. The mortgage provides the lender with security, allowing them to claim the property in case of payment default. Due to its strict link to the debt, mortgages are less commonly used in practice than land charges.