Selling a flat with a mortgage

Investing in the property market requires considerable knowledge. Are you wondering whether selling a flat with a mortgage is possible? Freedom of action is then limited, because the bank is entered in the land and mortgage register (księga wieczysta). Learn the details!

Can you sell a flat with a mortgage?

If we decide to buy a flat using our own funds, we have full control over the property. We can therefore sell it at any time without the consent of other bodies. Many people ask estate agencies how matters stand in the case of a residential flat encumbered with a mortgage. This form of loan does not make a sale impossible. The bank is entered in the land and mortgage register, but you are the owner of the flat. You can therefore carry out the sale, but you are obliged to inform the bank of your plans.

How to sell a flat encumbered with a loan?

If you want to sell a property encumbered with a mortgage, inform the potential buyer of the situation. A bank employee can issue a certificate with information on the part of the debt that still has to be repaid. That document should also contain:

• the borrower's personal data
• the date the loan agreement was concluded
• the amount of financing
• the current balance
• the technical account number
• the early repayment fee
• a declaration that documents allowing the security to be released will be drawn up.

It is your duty to inform the bank of the early repayment of the debt. Ask about the fees connected with this. The buyer of the flat should transfer the remaining amount of the mortgage to the bank's account, and the surplus to your account. A confirming certificate should be drawn up, containing the loan number and the number of the account to which the buyer should send the payment.

What is a "promesa"?

A "promesa" is a declaration by a bank branch stating that if the bank receives the appropriate loan repayment amount, it will issue consent to the deletion of its entry from the land and mortgage register. The promesa is valid for thirty days. It is an excellent solution that allows a preliminary agreement (umowa przedwstępna) to be drawn up. This does not require a visit to the notary. You can read more about this document in the article devoted entirely to concluding a preliminary agreement.

Selling a flat with a mortgage – completion

The final formalities connected with selling a flat encumbered with a loan must be completed at the notary's office. They do not differ from a transaction involving a property without a loan. The sale agreement takes the form of a notarial deed (akt notarialny). An instruction for full repayment of the debt must be submitted to the bank so that the loan can be settled. We also deliver a copy of the notarial deed to the bank.

Want more information about selling a flat with a mortgage? Please contact the estate agents of REMAX Gold.