Registering a mortgage in the land and mortgage register – what you should know

Buying a property, whether a flat or a house, is a significant investment. To finance such an undertaking, it is often necessary to take out a mortgage loan. As a result, the repayment must be secured by entering a mortgage in the land and mortgage register (księga wieczysta). Are you wondering how this process works? What is needed? In my article you will find comprehensive answers to these questions.

Why is registering a mortgage important?

A mortgage is a limited right in rem that encumbers a property as security for a claim. Once it has been established, the bank can be sure that if the borrower fails to meet the terms of the loan agreement, it will be able to satisfy its claims by selling the property at auction. The mortgage will encumber the property in the land and mortgage register for the entire loan period, and it will be removed after the debt has been repaid in full. The entry can be made through a notary, who will take care of the whole procedure, or independently, by submitting the appropriate application to the court.

What is the procedure for entering a mortgage in the land and mortgage register?

Entering a mortgage in the land and mortgage register requires going through several formal stages. These are:

• submitting the KW-WPIS application – this application, together with the required attachments (the bank's declaration that the loan has been granted, the borrower's declaration establishing the mortgage, copies of the powers of attorney of the bank's employees), must be submitted to the district court with jurisdiction over the property;
• paying the court fee set by law for entering a mortgage;
• assessment of the application by the court – this stage involves analysing whether the documents are complete and deciding on the entry.

Establishing a mortgage in the land and mortgage register is a process that takes time. From the moment the application is submitted to the moment of entry, it can take as long as several months. The length of the procedure largely depends on the number of cases the court has to consider.

If you want to speed up the processing of your application for the entry of a mortgage, you can submit to the court a letter requesting that the case be treated as urgent. Such a document, submitted at no additional cost, should contain your details, the case file reference number and a short justification. Under the regulations currently in force, this step is only possible after at least a month has passed since the first application was submitted.

Summary

Establishing a mortgage in the land and mortgage register is an essential part of taking out a mortgage loan. Although it may seem complicated, it is a routine step that can be carried out with the help of a notary or independently.

Are you looking for a flat or a house for your family? Do you want to buy a high-standard studio flat? Be sure to get in touch with me! As an experienced estate agent in Katowice, I will help you find the ideal home. I offer comprehensive support, from advice on choosing a property all the way to completing the transaction. Together we will find a solution that meets your expectations and needs.