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1. The subject matter of the dispute is the recognition of ownership of an apartment, the recovery of property from another’s illegal possession, the recognition of a mortgage agreement as invalid, and the cancellation of decisions of state registrars.
2. The court considered the application of Articles 1281, 1282 of the Civil Code of Ukraine in the event of the death of the mortgagor (property guarantor) who is not the debtor under the main obligation. The court concluded that these articles do not apply to legal relations related to the inheritance of property that was mortgaged to secure the obligations of a third party. In such a case, the mortgage remains valid for the heir who acquires the status of mortgagor, and these relations are governed by the Law of Ukraine “On Mortgage.” The court noted that the mortgagee is not a creditor of the mortgagor who is not a party to the main obligation, since the latter is not a debtor. The court also took into account that in the situation of a mortgage guarantee, the property is obligated, not the person. The court indicated that the heirs of such a mortgagor inherit not a debt, but only an encumbrance that follows this property.
3. The court partially satisfied the cassation appeal, amending the appellate court’s ruling, stating its reasoning part in a new wording, and departed from the legal position stated in the decision of the Supreme Court of Ukraine dated 08.04.2015 in case No. 6-33cs15 and in the ruling of the Supreme Court as part of the panel of judges of the Commercial Cassation Court dated 25.08.2020 in case No. 905/1959/19.