The property pledge can be one of the means used by a business or head of company to guarantee a professional debt. In general, the creditor go ask the debtor to provide a guarantee for to ensure payment of the debt.

Where the pledge relates to immovable property, the creditor shall obtain possession of the immovable property. In other words, it has a right of enjoyment on the building even if it does not own it. It may thus decide to lease the immovable property to a third party or to the debtor while retaining possession.

This particularity makes it possible to distinguish the property pledge from the mortgage. When a property is mortgaged, its owner retains possession and enjoyment.

The gains reported by the pledged building (e.g. rents) must be deducted from secured debt. Some of these gains can also be used for conservation and maintenance needs of the building.

The creditor loses possession of the immovable at one of the following times:

• Disappearance of secured debt : for example, the debt has been paid in full.
• Early return of the building to its owner : for example, when the creditor fails to fulfill his obligations towards the pledged immovable property.

The pledge may be given only by the person who has the capacity to dispose of the building that one wishes to pledge. The person who has a conditional right in a building may pledge that building, but the pledge will be subject to the same condition.

The pledge of a undivided building requires the agreement of all indivisaries. In other words, when a building has several owners, everyone has to agree so that the building can be pledged.

The deed of real estate pledge must be written and signed by a notary.

It must also be published. Creditor must deposit with the Land Advertising Department 2 shipments of the act:

The creditor must take care of the building conservation and maintenance came into his possession. He can use the gains (e.g. rent) he earns from the building to finance the costs of conservation and maintenance. If the owner of the property does not fulfill this obligation, he can ask for it its restitution.

In order to avoid having to bear the maintenance and preservation of the building, the creditor may renounce possession and return the property to its owner of his own accord. On the other hand, this must be the subject of a publication to the land advertising and registration service :

When the debtor fails to pay his debt, then the creditor can activate the pledge. For this, he has 2 possibilities:

• He may apply to the court for the pledged building to be given in payment. The building must be estimated by an expert. Where the amount of the immovable exceeds the amount of the secured debt, the creditor must return the difference to the original owner. If there are other creditors, that amount must be recorded by the creditor.
• He can ask for the forced sale building and get paid first on the price.

Since the immovable does not constitute the principal residence of its owner, it is possible to provide in the pledge agreement that, in the event of default on the debt, the immovable will be given to him as payment. This clause is called the“ commission pact ”.

If this clause is included in a pledge agreement when the immovable is the principal residence of its owner, the clause has no effect.

Where a debtor has more than one creditor, the creditors are settled according to the date of registration of their security rights (from the earliest to the most recent).

When the principal secured debt has been paid by the debtor, the pledge no longer exists. Thus, since the debt no longer exists, the creditor must return the property to its owner. To do so, it must request the deletion of the entry of the pledge in the land register ("release"). If he does not do so, it can be ordered by court.

The debt must have been fully paid so that the owner of the pledged building can get it back.

Where the income generated by the immovable has not been sufficient to cover the cost of the preservation and maintenance of the immovable, the debtor must reimburse the creditor for the sums paid out by the creditor.