What is antichresis?

The word antichresis designates the contract that is made when a real estate and that acts as a guarantee of a future payment. The property of the asset passes to the creditor, allowing him to receive the use and exploitation income corresponding to the asset. The duration of the antichresis is extended until the borrower complies with the due. Once this has happened, the good is returned to the debtor.

Antichresis is based on the agreement between the parties and on the delivery of real estate from one party to another. When debt disappears between debtor and creditor, the real estate must be returned.

Characteristics of anticresis

The main characteristics of antichresis are:

  • We are talking about a real guarantee: you agree to pay your obligations with a real estate.
  • The participants are: antichresist (gives up possession of the property) and antichretic (uses the property).
  • To recover the property, the outstanding debt between both parties must be settled.
  • Antichresis is an accessory right, serving as a means to ensure payment of the obligation and the interest generated.
  • It will only be possible to deliver the same asset to a single creditor, making it impossible to do so with several at the same time.
  • The antichresis contract disappears once payment of the obligation has been made and the debt has been paid. But, in addition, it can also be extinguished when the property is destroyed or expropriated, or the creditor renounces the antichresis. If the antichresis is waived, the lender must justify the reason why this will happen (it does not generate sufficient resources or similar to the required income), requiring that the debt be paid in a different way.

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