Parate executie
Extrajudicial enforcement
Parate execution is the right of a mortgagee or pledgee to sell the collateral upon default without obtaining a prior court judgment.
Parate execution enables a creditor, upon the debtor’s default on its obligations, to proceed directly to the enforcement sale of the collateral, such as a dwelling or movable property. This right arises from a mortgage deed or pledge agreement and dispenses with the need for judicial proceedings.
The mechanism facilitates the efficient recovery of claims under Dutch law, particularly for banks and other lenders. The debtor retains protection through statutory requirements governing the sale procedure, including reasonable time limits and the availability of opposition or annulment in cases of abuse.
“The bank proceeded to parate execution of the property after the mortgagee defaulted on the monthly instalments.”
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