Civil law · Supreme Court of Oman

Mortgaging land does not transfer ownership to the bank

A mortgage of land to a bank does not affect ownership and is not, by itself, a means of acquiring title.

CourtSupreme Court of Oman
DivisionCommercial Department
Challenge№ 209/2019
Session dateAugust 17, 2020
Material formatPublished legal principle

01

Legal issue

A mortgage of land to a bank does not affect ownership and is not, by itself, a means of acquiring title.

02

Published principle

The Arabic text published by the Supreme Court is the primary source. The English translation was published by the Technical Bureau; Russian and Chinese are unofficial Smart Global Capital editorial translations.

This is a published legal principle—an extract selected by the Supreme Court of Oman Technical Bureau—not the full text of the judgment.

Mortgaging a plot of land to a bank does not alter ownership of the land and does not constitute an independent means by which ownership is acquired.

03

Applicability

The principle distinguishes security from title; it does not prevent lawful enforcement after default. Registration, priority, notice and the foreclosure procedure must be checked in the particular case. This is an account of the published principle, not a full judgment translation.

04

Related instruments

  • Commercial Law — mortgage provisions
  • Real Estate Registration Law

05

Official source

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