What is the difference between a mortgage and a pledge? Can you give an example, thank you!

The mortgage is a security interest that does not need to transfer the subject matter, so it must go through registration and other formalities, and the mortgage is often applied to the immovable property, and the pledge of the object with a relatively large value is to transfer the possession of the subject matter, so there is no need to go through registration and other related procedures, the transfer of possession is quite public, and the scope of the object that can be applied to the pledge is also widerBoth mortgages and pledges are security interests. Difference Between Mortgage and Pledge:

First, the requirements for establishment and the requirements for maintenance are different. In addition to the signing of the mortgage contract, the establishment of the mortgage right is in principle conditional on the registration of the mortgage. The creation of a mortgage is not conditional on the delivery of the collateral.

The maintenance of the mortgage is also not conditional on the mortgagee taking possession of the mortgage. A registered mortgage is maintained on the condition that the existence of the mortgage registration record exists, and the cancellation of the registration means that the registered mortgage no longer exists. The creation and retention of a pledge is not the same as a mortgage.

For the establishment of the pledge, in addition to signing the pledge contract, the pledgor shall hand over the pledge to the creditor for possession in accordance with the pledge contract. A pledge cannot be established if the pledge contract is only concluded and the possession of the pledge is transferred to the creditor in accordance with the pledge contract. The continuation of the possession of the pledge of ginseng is also a condition for maintaining the pledge, and the loss of possession of the pledge by the pledgee will cause the extinction of the pledge.

Second, the subject matter is different. The subject matter of the mortgage is immovable property, usufruct of immovable property and movable property; The subject matter of the pledge is movable property and other property rights other than the usufructuary right of immovable property, including property rights such as creditor's rights, equity rights, and intellectual property rights. There is an intersection between the subject matter of the mortgage and the pledge right and the movable property.

Whether a security interest created in movable property is a mortgage or a pledge is distinguished by whether the creditor is in possession of the subject matter.

The difference between a mortgage and a pledge.

1. The conditions for establishment are different. The pledge must be transferred to possession and actually delivered to the creditor before the pledge can be successfully established. However, the creation of a mortgage does not require the transfer of possession of the collateral, and the collateral is still in the possession of the debtor;

2. The subject matter is different. The subject matter of the pledge is movable property and rights, and the immovable property can only be mortgaged, not pledged; The subject matter of the mortgage is immovable property, usufruct of immovable property and movable property;

3. The guarantee effect is different. In addition to the priority of repayment, the pledge is transferred to the possession of the creditor, so it causes psychological oppression on the pledgor to promote the repayment of the debt on schedule. The mortgage does not have such an effect because it does not transfer the possession of the collateral.

What are the requirements for the establishment of a pledge?

The following requirements must be met for the establishment of a pledge:

1. A written pledge contract must be signed between the creditor and the debtor for the purpose of securing the realization of the claim;

2. The pledge must be transferable and retainerable movable property;

3. The pledge shall be delivered to the pledgee for possession. Because the pledge contract is a practical contract, it is not necessarily established and effective after the contract is signed, and it is only established and effective when the subject matter of the movable property pledge, i.e., the pledge, is delivered.

Legal basis: Article 415 of the Civil Code of the People's Republic of China.

Where both a mortgage and a pledge are created for the same property, the proceeds from the auction or sale of the property shall be determined in the order of repayment in accordance with the time of registration and delivery.

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 fails to perform the due debt or the mortgage rights are realized as agreed by the parties, and the creditor has the right to be repaid in priority for the property.

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.