Registered security over movables

Entries on registered securities over movables can be made in the traffic register.

A registered security over movables is a restricted real right (like for example a mortgage in the case of immovable properties), on the basis of which the person for the benefit of whom the registered security over movables has been established has the right to the satisfaction of the claim secured by the pledge on the account of the pledged item (motor vehicle). A registered security over movables can be established on a motor vehicle if it has been entered in the traffic register. In order to establish a registered security over movables, change its content or terminate it, an entry is made in the traffic register on the basis of an application for entry submitted by the owner of the vehicle. An application for entry may also be included in the pledge contract.

The following is entered in the traffic register: the pledgee’s name and date of birth, registry code of the legal person, monetary value and ranking of the registered security over movables.

Submission of application

 

An entry is made in the traffic register about a registered security over movables on the basis of a written application of the person who has been entered in the traffic register as the owner of the vehicle, to which a written agreement on the establishment of a registered security over movables (pledge contract) has been added. In order to make a corresponding register entry and submit the application and other source documents, it is necessary to turn to a service bureau of the Estonian Road Administration or send the required documents in electronic form, i.e. digitally signed documents to the e-mail address of the Estonian Road Administration info@mnt.ee.

State fee

 

The state fee must have been paid before the submission of an application for entry. The state fee for an entry on a registered security over movables is paid on the basis of § 343 of the State Fees Act. The state fee for the registration of a pledge contract is paid in accordance with Annex 2 (PDF) to the State Fees Act. Requisite information on payment of state fee.

Omissions in application for entry

 

If an application for entry contains any omission that hinders making the entry or if a required document is missing (e.g. the state fee has not been paid, a notation concerning a prohibition on disposal has been entered in the register with regard to the vehicle, the vehicle has not been registered to the name of the pledger in the traffic register, etc.) and it is possible to eliminate the omission, the Estonian Road Administration will set a term for the elimination of the omission(s). If the omissions are not eliminated within the set term, the application for entry will not be satisfied.

After satisfaction of an application for entry and making an entry in the register, the Estonian Road Administration will inform interested people of making the entry by sending an e-mail to the address indicated in the application for entry. All entries on a registered security over movables can be checked in the e-service of the Estonian Road Administration.

In respect of which vehicles is it not possible to make an entry on a registered security over movables in the traffic register? It is not possible to make entries on a registered security over movables in respect of watercraft (recreational craft, ships of an overall length of less than 12 metres, jet skis) in the traffic register. Watercraft may be encumbered only with a possessory pledge (see § 281 et seq. of the Law of Property Act).

It is not possible to establish a combined registered security over movables on vehicles either. This means that if a contract covers more than one vehicle, the parties have to agree in the contract on the separate monetary amount of the registered security over movables in respect of each vehicle. In such a case the state fee is paid on each vehicle separately.

A registered security over movables extinguishes by agreement between the owner of the encumbered object (vehicle) and the pledgee and upon the deletion of an entry made on the registered security over movables from the register. In order to amend or delete an entry made on a registered security over movables, the written consent of the pledgee must be submitted to the Estonian Road Administration.

A registered security over movables is not a notation concerning a prohibition on disposal, i.e. it does not prohibit performing any other acts, incl. changing ownership, with the vehicle. Data about a registered security over movables as entered in the traffic register are public and, in order to examine them, it is sufficient enough to know the registration number of the vehicle or the name of the owner entered in the traffic register. Nobody may excuse themselves for not knowing the data entered in the traffic register about a registered security over movables.

Before buying a vehicle, it is certainly worth checking whether the vehicle has been encumbered with a registered security over movables and whether any notations concerning a prohibition on disposal have been entered in the register in respect of the vehicle. Go to e-service.

Issues related to a registered security over movables are first and foremost regulated by §297 to 303 of the Law of Property Act and § 176 to 183 of the Traffic Act.