When the apartment is charged with a mortgage
This requires going through additional procedures. However, this should not create a psychological barrier at the outset. If we are aware of such procedures from the beginning, it will be easier for us to get through them.
One of the first steps on the way to reaching an agreement with the crediting bank purchase transaction will be to provide the buyer with a certificate of the outstanding amount and the bank account number that should be credited with the funds from the transaction.
Such a document will be required by the notary public writing the notarial deed. He must specify the method of payment – this is a standard practice that should not surprise anyone.
The certificate should contain information
On when the bank will issue documents confirming this fact and consent to remove the mortgage from the land and mortgage register after the loan is repaid. It is worth remembering what the payment for the property will look like and in what order the loan tranches will be launched.
In the case of financing the purchase from own funds, the method of their payment is determined by the parties to the transaction. However, if the purchase is financed from a bank loan, then the bank may impose the order of proceedings in the event of a change of ownership of the apartment.
Some banks will first launch a loan tranche, intended to pay off the seller’s liability, and only then, after presenting the repayment certificate and consent to delete the mortgage, the remaining funds for the seller will be disbursed. In a few banks, this is a matter to be determined.
Is it enough to pay off the mortgage?
It is worth paying attention to the amount of debt due to the loan and the price of the property. If the debt balance is higher than the transaction price, then before selling the property, it will be necessary to overpay the loan from own funds, so that the funds obtained from the buyer will be sufficient to repay (and remove the mortgage from the land and mortgage register).
Flats and houses from the so-called primary secondary markets are a very attractive commodity for buyers. At the same time, there is a growing number of people who cannot meet their commitments to banks.
Therefore, it is worth looking for such opportunities and not be discouraged by the mortgage that these apartments are burdened with. However, we should not lose vigilance …