The Bona Fide Purchaser of Mortgaged Property: Striking a Balance Between the Stability of Civil Turnover and the Protection of the Creditor

The article addresses one of the most pressing issues in contemporary civil law – the relationship between the rights of a bona fide acquirer of mortgaged property and the rights of the mortgagee. The relevance of the study is determined by the increasing number of judicial disputes, the lack of legal clarity in applying the provisions of the Civil Code of Ukraine and the Law of Ukraine “On Mortgage,” as well as the need to ensure a balance between the stability of civil circulation and the effectiveness of the mortgage institution. The purpose of the article is to develop a scientifically grounded model for the interaction of these legal mechanisms, which would harmonize the interests of creditors, debtors, and bona fide acquirers. The study employs a combination of general scientific and specialized legal methods, including normative-legal, dogmatic, and comparative-legal approaches. The analytical method was applied to examine judicial practice, revealing trends in law enforcement and challenges in the implementation of legal norms. The comparative-legal method was used to juxtapose Ukrainian regulations with approaches in Germany, Poland, and France. The integration of analytical-synthetic and logical-legal methods enabled the generalization of results and the formulation of scientifically substantiated conclusions. The study finds that the absence of a unified position of the Supreme Court regarding the preservation of mortgage rights for a new owner creates a conflict between the principle of public trust in the real property register and the principle of the accessory nature of security interests. The article substantiates the necessity of introducing unified criteria for determining the bona fide status of an acquirer, clearly delineating circumstances under which a mortgage is preserved, and establishing compensation mechanisms in the event of errors in state registration, in line with European practices. The proposed model aims to achieve a balance between the protection of creditors’ rights and guarantees of stability in civil circulation, strengthen trust in the state register, and enhance mortgage security. This article will be of interest to scholars, practicing lawyers, judges, and legislators involved in the reform of property and obligation law.