The most known example of a security right is the right of mortgage. The right of mortgage is usually vested on immovable real estate as a security for the repayment of a loan. When the borrower would default in paying what is due (repayment or interest), the lender (usually the bank) can invoke the mortgage which usually results in the (public) sale of the real estate. The lender will first be paid from the proceeds of the sale, which provides security for the repayment of the loan. This gives security that the loan is repaid, assuming the selling price of the real estate minus all costs is sufficient to repay the loan.
Comparable to a right of mortgage is the right of pledge. The right of pledge is vested on movable property and may also secure claims for the payment of money. If the pledgor does not meet its obligations, the pledged assets may be sold in public, unless agreement is reached on a private sale or such request has been approved by the local court.
Because it is difficult to know if an asset is pledged or not, local law provides rules and regulations for the registration of a pledge.The pledge is often used for loans regarding cars or to restaurants, pledging the car or the inventory of the restaurant.
While the right of mortgage and pledge provide for the possibility of a sale of the assets, the right of retention only allows for the retention of the asset until a claim is paid. If a car is brought to the workshop for repairs and the client would refuse to pay the invoice, the workshop may retain the car