Any individual or legal entity may pledge as collateral land they own or possess. If the land was transferred to an individual or a legal entity based on a valid legal agreement, the person receiving such rights has the ability to legally pledge those rights so long as the legal claim to the land rights remains valid. Registration of a pledge of land will require presentation of documentation including the cadastral, and a copy of the land ownership, possession, or utilization certificate along with the pledge agreement.
A bank or a person authorized to conduct credit activities may also receive a pledge to land based on rights granted by a loan agreement. Such rights may be registered by the bank or creditor as pledgee as with any pledge.
Land may be pledged separately from the buildings that are constructed on it, or even which are in the process of being constructed. A pledge agreement must stipulate the land and buildings may not be pledged separately, if this is the intention.
In case of disagreement between a pledgee collecting on pledged rights to land, and an owner of buildings on the land, parties should seek to reach a mutual agreement between themselves, or in extreme cases seek resolution at court.