In today’s stressed economic climate, especially after the COVID-19 pandemic, it has become increasingly difficult for purchasers to secure finance from financial institutions, leaving few options available to them. the property is mortgaged in favour of the party who has advanced the money to the purchaser. This type of bond must be registered simultaneously with the registration of the transfer of the property to secure the mortgagee for payment of the purchase price with the property as the mortgagee’s security, i.e. However, the mortgagee may need to become a registered credit provider, and the seller may experience frustration due to delayed receipt of the full purchase price. Advantages of using a Kustingsbrief include the opportunity for a purchaser to buy a property without loan approval, the ability to negotiate the interest rate, preferential claim for the mortgagee in case of the purchaser's insolvency, and the possibility of being registered as a first bond.The traditional form of a Kustingsbrief was registered in favor of the seller of the property, but in modern practice, it can also be registered in the name of any third party who lends money to the purchaser.It is registered simultaneously with the property transfer and provides security to the party that has advanced the money. A "Kustingsbrief" is a mortgage bond used to secure the purchase price or balance of a property when a purchaser is unable to obtain financing from a financial institution.
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