How is a mortgage and a pledge different, and what is the difference between a pledge and a mortgage

Pledge means that the debtor or a third party transfers its movable property or rights to the creditor for possession, and uses the movable property or rights as security for the creditor's rights. When the debtor defaults on its obligations, the creditor has the right to be repaid in priority with the property in his possession in accordance with the law. Among them, the debtor or a third party is the pledgee, the creditor is the pledgee, and the movable property or rights transferred are the pledge.

Mortgage refers to the legal act of the debtor or a third party to the creditor with a certain property as a guarantee for the repayment of debts. The debtor or a third party who provides the mortgaged property is called the mortgagor; The mortgaged property provided is called a collateral; The creditor is the mortgagee, and therefore enjoys a right called a mortgage, which is a type of security interest. The fundamental difference between a pledge and a mortgage is whether or not to transfer possession of the secured property.

The mortgage does not transfer the form of possession of the collateral, and the mortgagor is still responsible for the custody of the collateral; The pledge changes the form of possession and management of the pledged property, and the pledgee is responsible for keeping the pledged property. Generally speaking, the mortgagor shall be liable for the damage or decrease in the value of the collateral, and the pledgee shall be liable for the damage or decrease in the value of the collateral. The creditor does not have the right to dispose of the collateral directly, and needs to negotiate with the mortgagor or complete the disposal of the collateral after the court makes a judgment through litigation; The disposal of the pledged property does not need to be negotiated or court-decided, and the pledgee can dispose of it beyond the time specified in the contract.

Pledge loans are the same as mortgage loans. Legal basis: The term "mortgage" in Article 33 of the Security Law of the People's Republic of China as used in this Law refers to the debtor or a third party not transferring the possession of the property listed in Article 34 of this Law and using the property as security for creditor's rights.

When the debtor fails to perform its obligations, the creditor shall have the right to receive preferential repayment in accordance with the provisions of this Law at the discount of the property or the price of the auction or sale of the property. Article 63 of the Guarantee Law of the People's Republic of China? The term "pledge of movable property" as used in this Law refers to the debtor or a third party handing over its movable property to the creditor for possession and using the movable property as security for the creditor's rights.

When the debtor fails to perform its obligations, the creditor shall have the right to receive priority repayment in accordance with the provisions of this Law at the discount of the movable property or the price of the auction or sale of the movable property.

The difference between mortgage and pledge is:

The subject matter of the mortgage is usually immovable property and special movable property (car, boat, etc.); Pledges are mainly movable assets.

A mortgage is only effective if it is registered, and a pledge is only in possession.

A mortgage only has the effect of a simple guarantee, while in a pledge, the pledgee not only controls the pledge, but also can reflect the effect of a lien.

The realization of the mortgage right is mainly through the application to the court for auction, while the pledge is mostly sold directly.

Mortgage means that the debtor or a third party does not transfer the possession of the property that can be mortgaged as prescribed by law, and uses the property as security for the creditor's rights, and when the debtor fails to perform the debt, the creditor has the right to be repaid in priority for the sale price of the collateral in accordance with the law.

Pledge means that the debtor or a third party transfers its movable property to the creditor for possession, and uses the movable property as security for the creditor's rights, and when the debtor fails to perform the debt, the creditor has the right to be repaid preferentially for the sale price of the movable property in accordance with the law.

Legal Analysis: 1. The concept is different.

Mortgage means that the debtor or a third party does not transfer the possession of the mortgaged property, and uses the property as security for the creditor's rights, and when the debtor fails to perform the debt, the creditor has the right to auction and sell the property in accordance with the law, and the proceeds are preferentially used to repay the debt.

Pledge means that the debtor or a third party transfers the movable property to the creditor for possession, and uses the movable property as security for the creditor's rights, and when the debtor fails to perform the debt, the creditor has the right to sell the movable property according to law, and the proceeds are preferentially used to repay the debt.

To put it simply, a mortgage does not need to transfer the collateral, and a pledge requires the transfer of the collateral. For example, our common mortgage car loan is a pledge loan, while a mortgage Huihu car loan is a mortgage loan.

2. The subject matter is different.

Mortgage: The subject matter of the mortgage is usually real estate, such as real estate, cars, etc.

3. The requirements for establishment are different.

Mortgage: The mortgage in the mortgage may not be transferred to possession, but the mortgage registration is required.

Pledge: The pledged property in the pledge needs to be transferred to possession in advance, but it does not need to be registered.

4. The effective time of the contract is different.

Mortgage: The mortgage contract is effective from the date of registration.

Pledge: The pledge contract takes effect when the pledge or pledge is transferred to the pledgee.

Legal basis: Civil Code of the People's Republic of China

Article 394:Where the debtor or a third party mortgages the property to the creditor without transferring the possession of the property in order to guarantee the performance of the debt, and the debtor fails to perform the due debt or the mortgage rights are realized as agreed by the parties, the creditor has the right to be repaid in priority for the property.

Article 425:Where the debtor or a third party pledges its movable property to the creditor for the purpose of guaranteeing the performance of the debt, and the debtor fails to perform the due debt or the pledge is realized as agreed by the parties, the creditor has the right to receive priority in repayment of the movable property.

The fundamental difference between a pledge and a mortgage is whether or not to transfer possession of the secured property. The mortgage does not transfer the form of transfer and possession of the collateral, and the mortgagor is still responsible for the custody of the collateral; The pledge changes the form of possession and management of the pledged property, and the pledgee is responsible for keeping the pledged property.

Civil Code of the People's Republic of China

Article 394.

If, in order to guarantee the performance of the debt, the debtor or a third party does not transfer the possession of the property and mortgages the property to the creditor, the debtor shall have the right to be repaid in priority in respect of the property if the debtor fails to perform the due debt or the mortgage rights are realized as agreed by the parties.

The debtor or third party provided for in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property provided for by the guarantee is the mortgaged property.

Article 425.

If the debtor or a third party pledges its movable property to the creditor for the purpose of guaranteeing the performance of the debt, and the debtor fails to perform the due debt or the parties agree to realize the pledge, the creditor has the right to be repaid in priority for the movable property.

The debtor or third party provided for in the preceding paragraph is the pledgee, the creditor is the pledgee, and the movable property delivered is the pledged property.

1. The main difference between a nuclear pledge and a mortgage is whether there is a transfer of collateral. In a pledged loan, the collateral is held by the creditor, while the mortgage remains held by the debtor.

2. The collateral is different. In principle, the subject matter of the mortgage is subject to immovable property, but not limited to movable property; The subject matter of the pledge is usually movable property and rights.

3. The scope of guarantee is different. The cost of the pledge is higher, and the scope of the statutory guarantee of the mortgage includes the main claim and interest, liquidated damages, damages and the cost of realizing the mortgage, while the pledge also includes the cost of keeping the pledge, and the pledgee has to pay the necessary fees for the management of the pledge.