Under the law, if an owner is at least three months in arrears with common costs, the general meeting may decide to register a mortgage in favour of the condominium on the debtor's separate property and the related share of common property as security for the debt. This requires a general meeting resolution; it is not an automatic legal consequence, the condominium has to initiate it actively.
Registering the mortgage does not in itself mean the condominium can immediately enforce the claim against the property; that still requires a final payment order or judgment and then enforcement proceedings. The practical value of the mortgage lies in securing the claim against other creditors: if the owner sells the flat or another creditor starts enforcement, the registered mortgage takes priority in ranking from the date of registration.
From the owner's perspective this is a serious warning sign: a mortgaged property is harder to sell or pledge, because the debt is visible to buyers and banks in the land registry. In many cases the mere fact of registration, or the prospect of it, provides enough motivation to settle the arrears before matters escalate.
The registration is deleted once the debt is fully paid, again at the land registry, and the condominium must issue a declaration to that effect. It is important that the representative does not skip this step, as a registration left in place despite a settled debt unfairly hinders the owner's future transactions.
In practice a mortgage should be treated as the last, genuinely serious step of the escalation chain rather than the first instrument used, as it would be disproportionate at 30 days of arrears and would needlessly damage trust with the owner.
If your building is considering such a step, Merbo together with its legal partners assesses precisely when this route is worthwhile and when a payment order alone is enough.