How to sell a flat with a mortgage? Part 2

In the previous part we presented the individual stages of selling a flat with a mortgage. Today we continue the topic, looking at completing the transaction and how it proceeds depending on whether the buyer needs a loan or not. After reading today's article, selling a flat with a mortgage will hold no secrets for you.

Completing the transaction

The last stage of selling a flat with a mortgage is a joint visit by the owner and the buyer to the notary and the drawing up of the sale agreement in the form of a notarial deed (akt notarialny).

Once the agreement is ready, the buyer can pay for the property. Part of the money must be transferred to the bank that granted your loan, and the surplus is transferred to your account.

If the buyer also needs a loan in order to pay for the property, they must deliver a copy of the sale agreement to their bank. In this way their bank will know that part of the money must be transferred to your bank's account and the remaining amount to your account.

Remember also to ask your bank to issue an instruction for full repayment of the debt. Until you do, the bank will not be able to settle the loan.

Once both you and the bank have received the buyer's transfer, go to the bank for a certificate confirming that the debt has been settled, as well as for consent to the deletion of the bank's mortgage. Hand the document to the buyer, who should take care of the formalities connected with removing the bank from the land and mortgage register (księga wieczysta).

When the buyer does not need a loan

In such a situation the whole procedure becomes much simpler. As the seller, all you need to do is draw up a preliminary agreement (umowa przedwstępna). Then, together with the buyer, you must prepare the sale agreement at the notary's office. In the next stage the buyer completes the transaction by transferring part of the money to your bank's account in order to repay the loan, and the remainder to you. The last step is to go to the bank for a certificate allowing the bank's mortgage entry to be deleted.

What if the loan is in Swiss francs or another currency?

In the case of a foreign-currency loan, the bank will convert your debt at the current exchange rate, but you must repay it in the currency in which it was taken out. In such a situation it may turn out that the amount of the loan exceeds the price of the flat. It is therefore worth considering whether selling the property is still profitable.

Selling a flat with a mortgage is a fairly common procedure. Although at first glance it may seem complicated, it really requires only a few additional formalities. If you do not feel confident enough to carry out such a sale yourself, it is worth using the services of an estate agency, which will give you comprehensive information about the whole process and support you at every stage.