What are the main methods by which a real estate lender seeks to protect itself from default by the borrower?
The law grants the lender a special privilege on the immovable property in virtue of which finance is provided as long as such loan is given by means of a public deed for the sole purpose of, and is actually used for, purchasing the property. The financial institution may seek further protection through a special hypothec as well as a general hypothec on the assets of the person or corporate entity seeking finance.
