Pignorative Contract Law and Legal Definition

Contract

This is a contract in which the seller of real property, instead of relinquishing possession of the property which is sold, gives the buyer a lien. A pignorative contract is a contract of pledge, hypothecation, or mortgage of realty. In such a contract, the owner of an estate engages it to another person for a sum of money, and grants to him and his successors the right to enjoy the same, until he shall be reimbursed that amount.