How to check whether the flat we want to buy has any debts?

When preparing to buy a property, you have to bear in mind all the matters that need to be seen to. Among other things, it is essential to check the documentation. By studying it, we will find out whether there are any third parties with rights to the house or flat we are buying. Once we have done that, we should take one more important step – check the debts on the flat we plan to buy. We explain what you need to do.

• Debts on the flat being bought – check the land and mortgage register
• "Notes" – why should they be checked?
• No land and mortgage register – what then?
• Documentation available online
• Additional information

Debts on the flat being bought – check the land and mortgage register

A great deal of important information about the property being bought, from both the primary and the secondary market, can be found in the land and mortgage register (księga wieczysta). That is where all the data that will certainly interest us is recorded. We will gather information about the owner of the flat and whether it is free from third-party rights. To check whether the flat is encumbered financially, let us go through Section IV. Its title – "Mortgage" – suggests what information is recorded in it. By analysing it, we will find out whether the property is encumbered with a mortgage. We will also check what kind of mortgage we may be dealing with, how much it is for and in what currency. We will also find the creditor's details and verify to whom the debt is owed.

"Notes" – why should they be checked?

When going through the entries in the land and mortgage register, it is worth looking at the column "Notes in Section IV" ("Wzmianki w dziale IV"). It contains entries, marked with a specific date and time, stating that the district court that keeps the register has received an application awaiting consideration. It is worth verifying an entry of this kind as soon as possible. It usually relates to properties with a history on the secondary market. Let us add at the same time that under the so-called Developer Act we have the right to check the developer from whom we want to buy a unit on the primary market. Polish law makes it possible to ask for access to its financial statements for the last two years.

No land and mortgage register – what then?

Not every property has to have a document in the form of a land and mortgage register. This applies mainly to the acquisition of a cooperative ownership right (spółdzielcze własnościowe prawo do lokalu). In this case the owner is the housing cooperative. You should contact its representatives with a request to issue a certificate stating whether there are any debts on the unit.

Documentation available online

The land and mortgage register of a building, if one has been established, can be found by visiting the relevant district court, but we can also review it online. The Ministry of Justice has prepared a special website, ekw.ms.gov.pl. By entering the register number there, we will obtain all the necessary data. This is the most convenient way to check the documentation.

READ ALSO – SELLING A FLAT OCCUPIED BY A TENANT

Additional information

When going through the documents, it is a good idea to check whether the previous owner has paid the charges for perpetual usufruct (użytkowanie wieczyste) and property tax. At the municipal office, in turn, you should check whether anyone is registered as resident in the unit whom the seller did not mention. To make sure of this, you should visit the residence registration department of the city or municipal office. If the seller is a business owner, let us find out whether they have settled their arrears with the Social Insurance Institution (ZUS) and the Tax Office. Let us ask for the relevant document confirming this.

Checking whether a flat has any debts is an important step that should be taken. It helps avoid unnecessary problems and reassures the buyer that they will not have to deal with unexpected difficulties. It is worth remembering this so that the purchase goes smoothly. To obtain additional information on this subject, it is a good idea to contact the professionals at the REMAX Gold estate agency.