In Québec, what is the fundamental legal distinction between a 'hypothec' and a 'mortgage' in the context of Canadian real estate law?

Question: In Québec, what is the fundamental legal distinction between a 'hypothec' and a 'mortgage' in the context of Canadian real estate law?

Answer options: ✅ A hypothec is specific to Québec civil law, creating a real right on the property without dispossession, while 'mortgage' is a common law term for a transfer of title as security.

• A mortgage always involves a transfer of title to the lender, whereas a hypothec is merely a contractual agreement.
• There is no practical difference; 'hypothec' is simply the French translation of 'mortgage'.
• A hypothec always requires a public deed before a notary, while a mortgage can be a private agreement.

Correct answer: A hypothec is specific to Québec civil law, creating a real right on the property without dispossession, while 'mortgage' is a common law term for a transfer of title as security.

Explanation: Article 2660 of the Civil Code of Québec defines a hypothec as a real right on an immovable or movable property, making it an accessory obligation to a debt, which is distinct from the common law concept of a mortgage involving a conditional transfer of title.