A mortgage is a means of securing a claim by encumbering immovable property. Simply put, if you owe someone 10,000 GEL and do not have the funds to satisfy this claim, under the existence of a mortgage, your counterparty will seek to protect their interests by acquiring ownership of your immovable property or by selling it—the mortgage right entitles them to do so.
The mortgage right is widely used in relationships between banks and individuals. When you take out a large loan from a bank, the bank typically requires financial guarantees from you. One such financial guarantee is the encumbrance of your immovable property (land and/or structures located on it) with a mortgage right.
