Selling a flat with a mortgage — step by step

Repaying a mortgage takes many, many years — and a lot can happen in that time. Circumstances may force us to move and sell the flat. What then? What conditions must we meet to sell a flat encumbered with a loan, and what must we remember before closing the transaction? Let's find the answers to these questions!

Can we sell a flat encumbered with a mortgage?

Let's start at the beginning. Although some may think otherwise, selling a property with a loan secured on it is possible. On the seller's side, such a transaction involves only a few formalities, which we can handle without difficulty with the help of a notary and the bank where we took out the loan.

The only obstacle that can really prevent us from selling the flat is… trouble finding a buyer! Many people looking for a new home are wary of properties encumbered with a mortgage — even though in reality it means no additional costs for them. In such a situation it is worth turning to an experienced estate agent in Katowice, who knows how to dispel prospective buyers' doubts!

A certificate of indebtedness — without it there is no question of a sale!

If we have decided to sell our property, we need to obtain all the information about the loan agreement we concluded to buy it. To do this, we should visit the branch of the bank that granted us the mortgage. Its representative will issue a certificate with precise details of the obligation — its amount, interest and repayment terms. It will also contain information the buyer needs, such as the account number to which they will pay the money to repay the loan, or information about additional amounts due.

Be sure to also ask for a consent letter (promesa) — the creditor's (the bank's) consent to repayment and to the deletion of the mortgage encumbering our property. It will be valid for only 30 days — so let's use that time to conclude the preliminary agreement (umowa przedwstępna)!

The notarial agreement? There are a few catches here

With the certificate of indebtedness and the consent letter in hand, we can go to a notary to have the preliminary agreement drawn up. Why is it necessary in such a transaction? It lets us use the consent letter received from the bank, and for the buyer — it will certainly come in handy when applying for a loan!

However, the preliminary agreement is only the beginning — the most important thing for us is drawing up and signing the notarial deed (akt notarialny) of the sale agreement. How the procedure leading up to signing it goes depends on how the future owner of the property will repay the mortgage.

Most often the buyers themselves take out a loan to buy our flat. The bank may grant it on the basis of the preliminary agreement — but before the sale agreement is drawn up. After the buyer is granted the mortgage, the notary will file an application for changes in the land and mortgage registers (księgi wieczyste) of the property. Only then will the bank (the buyer's lender) transfer the money to the account of the other bank (the seller's creditor) and to the seller themselves, if the sale price is higher than the debt being repaid.

The matter is much simpler when the buyer finances the purchase from their own funds. In that case, they can transfer the appropriate amount directly to the bank's account, and any surplus (that is, our profit) - to our account.