The Civil Code of Quebec considers the hypothec as an accessory to the loan. The hypothec is a mechanism by which the borrower offers, in general, to the lender a property as security. This property given as security assures the lender that he will be repaid because, in case of non-payment, he will have the right to seize and sell the property in question in order to pay himself.
The immovable hypothec is the most known of hypothecs, but it is not the only one. It obeys in addition to certain particular rules.
The Civil Code of Quebec provides in particular that the immovable hypothec must be obligatorily created by a notarial act in minutes to be valid. Some financial institutions separate the deed of hypothec and the loan agreement, others merge them into a single document under the title of "hypothecary loan".
This browser does not support this kind of file. Please download the file to view it: Download the file