Antichresis

Definition - What does Antichresis mean?

Antichresis is when a debtor offers up an interest in a piece of real property to a creditor as a form of security for a specific debt.

In the context of the law, such an agreement is legally binding, and if a debtor in an antichresis arrangement defaults on loan payments, the property rights can transition to the lender.

Justipedia explains Antichresis

Antichresis is often used to create a situation in which a debtor allows a lender to receive the financial fruits of a rental property in the form of rent payments for a specific period of time. For example, a debtor may allow a creditor to receive rental payments on their property for a year in lieu of the debtor making payments on the loan owed to the lender. After the year ends, then the antichresis period can conclude, and the debtor can receive the rent payments again.

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