How to sell a flat with a mortgage loan?
Can I sell a flat with a mortgage? Sale of an apartment with a mortgage – how to do it? Sale of an apartment with a mortgage – documents
Can I sell a flat with a mortgage?
It often happens that we want to buy an apartment, but we do not have enough cash. In order to buy your dream m4, we take a mortgage. This type of online loan is definitely different from a cash loan because it usually comes at a lower cost, but we take it for a very long time.
In a situation where our mortgage has not yet been repaid and we are forced to sell the flat, we are wondering if there is such a possibility. Despite the fact that the bank secures itself through an entry in the land and mortgage register, the owner is the person who took the loan and bought the apartment. There is a right to sell it here.
Sale of an apartment with a mortgage – how to do it?
The first step to take if you want to sell an apartment is, of course, listing. For this purpose, we can use various advertising portals that enable us to do this. The often chosen method is also to use the services of real estate agencies, which will take professional photos and look for clients.
The announcement should include information that the flat offered for sale is encumbered with a mortgage.
When the person interested in buying the property speaks to us, you should go to the bank that gave us the loan to inform you about the transaction. In such a situation, a bank employee should issue a certificate stating the amount of money remaining to be paid.
In addition, the document must contain the borrower’s details, date of granting the loan, amount of financing, current balance, technical account number, commission for earlier payments and declaration of issuing documents that allow release from collateral.
It is also important to apply for a promise, i.e. the bank’s promise that as soon as the cash is received on the account, the bank will authorize its removal from the land and mortgage register. This type of document is valid for 30 days.
Then it is necessary to write a preliminary contract. In the event that the buyer plans to buy an apartment for cash, the contract may be concluded without the participation of a notary public. If the buyer takes a mortgage to buy an apartment, it is necessary to draw up a contract in the form of a notarial deed.
The contract must include a provision on the division of the amount from the sale of real estate into two tranches. The first one goes to the bank’s account for the repayment of the remaining loan. The second part is transferred to the seller’s account and is the difference between the sale price and the amount intended for repayment of the loan.
If a preliminary contract is concluded with a notary’s office, all fees are usually paid by the buyer of the property. However, according to the Notary Law of February 14, 1991, it is possible for notary costs to be divided equally between the seller and the buyer.
After writing the preliminary contract, you should apply to the bank to remove the mortgage from the land and mortgage register. The application should be prepared on the official GFIC form and should be accompanied by the bank’s statement on loan repayment, as well as proof of payment of the court fee.
For the transaction to end, the buyer and seller of the property must go to a notary’s office. Then the final sales contract is written down in the form of a notarial deed. Also in this situation, the buyer usually bears the fees.
Sale of an apartment with a mortgage – documents
The sale of a mortgaged flat is not much different from the traditional sale of real estate. The only thing separating these two transactions is the fact that when we sell an apartment with a loan, we must provide a bank certificate on the remaining debt. The document must include:
- the entire amount, including interest, commissions and all other charges;
- other outstanding debts;
- borrower’s details;
- account number to which funds to repay the loan should be transferred;
- date of loan granting and repayment date;
- the bank’s consent for one-time repayment of receivables;
- promise valid for 30 days.
To sell an apartment it is also necessary to have a document that confirms the purchase of the property. It is also often required to submit a certificate from the housing community about the lack of arrears in fees and a certificate about the lack of persons registered in a given apartment.
If the buyer takes a loan to buy the property, it is necessary to provide a copy of the notarial deed of the preliminary contract to the bank. Thanks to this, the bank will receive information on the amount to be transferred to the bank account as part of the repayment of the seller’s credit.