Amendments to the Mortgage Law
Amendments to the Law on Mortgage, which entered into force on 1 October 2015, as published in the Official Gazette No. 83/2015, primarily seek to align the Law with the Constitutional Court Decision Ref NoIUz 799/12 ruling that a provision of the Mortgage Law, which disallows a complaint against the second-instance decision on mortgage foreclosure sale is inconsistent with the Constitution.
Essentially, under the recent amendments, the creditor acquires the right to extrajudicial sale from the day administrative appeals are no longer available against it (“konačno rešenje”). Earlier, another, higher, level of decision finality was required, involving unavailability of both appeals and recourse to the Administrative Court (“pravosnažno rešenje”). Consequently, other elements of mortgage procedure are now linked to the moment the decision becomes “merely” non-appealable (“konačno rešenje”).
In addition, the provision disallowing either a complaint or remedy against a second-instance decision was deleted. In this way, the Law was aligned with other regulations governing administrative procedure and work of real estate cadastre services, where requests relating to the same case are decided upon in the order of their submission and no new request can be taken into consideration before the previously filed request has received a non-appealable decision (“konačno rešenje”).