Elimination and Registration of Pre-Notice and Mortgage through Mediation: A Practical Solution for Lawyers

The registration and elimination of pre-notation and mortgage are a daily matter of concern for lawyers, especially in cases of bank loans, repaid debts or arrangements with funds. Traditionally, the elimination of these real encumbrances required either a court decision or a notarial deed, procedures that were often time-consuming and expensive. The introduction of mediation in Greek law with Law 4640/2019 and the subsequent amendments to the Civil Code have created a new, extrajudicial and particularly effective way out.

Registration and elimination of mortgage pre-notation

The mortgage pre-notation, as a temporary security measure, is traditionally registered only following a court decision (e.g. interim measures). Accordingly, its elimination required a subsequent court decision or a notarial deed with a declaration by the lender.

With him Law 5095/2024 Article 1274 of the Civil Code was replaced, which now explicitly states that title for registration and elimination of a mortgage pre-notation is provided not only by the court decision and the payment order, but also by mediation protocolWith this provision, mediation is introduced for the first time institutionally into the core of real collateral. Thus, the mediated settlement acquires the same weight as the court decision or the notarial deed.

In practice, this means that when the lender and the debtor reach an agreement in the context of mediation (e.g. due to repayment or restructuring of the debt), the minutes that are drawn up are filed with the competent Court of First Instance and can be immediately registered in the Land Registry as a title to eliminate the pre-notation. Neither a notarial declaration nor a new court decision is required.

This is a significant development that reduces the time and cost of procedures, while strengthening the role of lawyers in managing such disputes.

Registration and elimination of a mortgage

The mortgage, unlike the prenotation, constitutes a full real burden. Traditionally, its elimination required a unilateral notarial declaration by the lender under article 1325 of the Civil Code or a final court decision.

THE Law 4640/2019 introduced a section in the provision of article 8 par. 5, according to which the mediation report, from the moment it is filed with the competent court, “may be used as a title for the registration or elimination of a mortgage”, assimilated to a notarial document or a court decision. Thus, the lender's consent to elimination can be reflected through an agreement drawn up before a mediator, with binding force.

Case law has already confirmed this practice. For example, the Hellenic Land Registry Decree 5009/2024 ruled that the Land Registry Office is obliged to register a mediation report and to correct inaccurate entries, without checking the substantive validity of the title or the validity of previous acts. The competence of the Land Registry Office is limited to a formal check of legality and not the substance of the agreement.

It is worth noting that, when one of the parties is the State, a local authority or a legal entity, it is not possible to eliminate a mortgage through mediation. In such cases, a judicial or notarial procedure is required.

Advantages

Choosing mediation to eliminate a mortgage or foreclosure provides multiple benefits:

Speed

The procedure can be completed in one session, as opposed to the longer time required by other options.

Economy

The cost does not depend on the amount of the claim, while registration in the Land Registry is treated as a court decision with a fixed fee.

Reducing bureaucracy

No supporting documents are required, such as ENFIA and tax/insurance information, as in the case of notarial deeds.

Strengthening contractual freedom

The parties determine the content of the solution, ensuring enforceability.

Mediation is now emerging as an essential tool for lawyers in the elimination, but also in the registration, of both pre-notations and mortgages. With the institutional recognition of the mediation practice as a title equivalent to a court decision or notarial deed, the procedures are simplified, accelerated and become more economical.

This practice is not limited to dispute resolution, but also offers a new model of cooperation between lawyers and mediators, strengthening the position of the former as strategic advisors in real relationships.

OR elimination of pre-notation and mortgage through mediation It is, ultimately, a real innovation that deserves to be actively integrated into legal practice.

Colleagues, The elimination/registration of pre-notation and mortgage through mediation is no longer a theory, but a new reality, with a clear legislative basis and already applied in case law. A lawyer has already addressed our organization requesting guidance on a specific case, highlighting the practical importance of the issue, which we thank.

Here, then, we have before us a new tool, which can drastically reduce time and cost, offering immediate solutions to our clients.

We invite you to take advantage of this opportunity with the support of startADR, for information, guidance and practical steps, so that you can integrate it into your daily legal practice.

Dr. Ria Papadimitriou
General Manager startADR