The removal of the mortgage from the perpetual book becomes possible at the time of repayment of the debt or the decision to refinance the undertaking. This procedure is besides applicable in real property acquisition and sale transactions. In this article, we will discuss in item how this process takes place, how to fill in the appropriate form, who is liable for submitting it, and what costs are associated with it.
The mortgage serves as collateral for a loan, debt or another contract, charging the property. The buyer has the chance to check the existence of a mortgage in the perpetual book before buying an flat or house.
When can we delete the mortgage?
The deletion of the mortgage is possible after the last instalment of the liability has been repaid or in the case of refinancing of the mortgage, i.e. transfer to another bank in order to get more favourable financial conditions. We can besides do this before selling the property, which is essential to carry out a notarial transaction.
Who's liable for deleting the mortgage?
Both the borrower and the mortgage creditor can remove the mortgage from the perpetual book. In practice, however, it is the property owner who handles all the formalities.
Under the rules, the bank is required to cooperate with a mortgage creditor, but does not gotta apply for the removal of the property from the mortgage on its own.
Consent of the creditor to delete the mortgage
After payment of the last instalment of the loan, the bank should issue to the property owner a masal receipt confirming the repayment of the debt and thus the deletion of the mortgage. For private loans where the mortgage is collateral, notarial signatures may be required.
Costs of removing the mortgage
The issue of a matrimonial receipt by the bank may affect a fee, although not all banks collect it. The fixed cost is simply a judicial fee for deleting the mortgage, amounting to PLN 100 per owner. The fee can be paid at the court office, electronically via the gov.pl website or by conventional transfer, giving in the title “deleting the mortgage” and the number of the perpetual book.
Application for the deletion of a mortgage
In order to remove the mortgage, it is essential to submit an application to the territory court keeping the book of perpetual property. The application may be made in individual or electronically and the documentation shall be accompanied by the approval of the bank, proof of the creditor’s representation and confirmation of the fee paid.
Dear reader, we remind you that all legal matters in this substance we compose about can be complicated and frequently require the aid of a lawyer. It's worth discussing it with a lawyer before taking legal action.
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Deleting the mortgage. What is the procedure and the cost?:
