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Is a Car Considered Real Property?

1 Answers

McHaley

07/30/25 7:06am

Automobiles are classified as movable property. Below are relevant explanations regarding movable property: Establishment of Pledge Rights: The creation of a pledge on movable property. The establishment of a pledge on movable property requires the execution of a written contract. The pledge contract takes effect upon its valid formation, and the pledge right is established when the pledgor delivers the pledged property. The pledge contract is prohibited from containing clauses on forfeiture. If the pledged property is ambiguously described in the pledge contract, or if the described pledged property does not match the actually delivered property, the property actually delivered and possessed shall be considered the pledged property. If the pledgor holds the pledged property on behalf of the pledgee, the pledge contract does not take effect. Components of a Mortgage: A movable property mortgage is a mortgage with movable property as the subject matter. Therefore, the establishment of a movable property mortgage must specify movable property as its subject scope. However, this does not mean that all movable property can serve as the subject matter of a movable property mortgage; only specific movable property can be designated as the subject matter for establishing a movable property mortgage.

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