First and foremost, stay calm. The presence of a mortgage on a property being sold in Poland is a common situation and nothing to worry about, as long as you approach it correctly. Any property owner with an active mortgage has the right to sell it, using the proceeds from the transaction to repay the loan. To do so, the seller provides the notary with a certificate from the bank indicating the amount of the outstanding debt and the bank account number for repayment.
If the buyer also uses a mortgage loan to purchase the property, the procedure may vary depending on the lending bank’s requirements. In some cases, the mortgage loan is disbursed in tranches: the first tranche is used to cover the seller’s debt, and the second is transferred to the seller after the bank receives confirmation of the mortgage repayment, loan closure, and submission of an application to the court to remove the mortgage from the Land and Mortgage Register.
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This is a document that confirms the repayment of the mortgage loan. The bank issues it approximately 14 days after the full repayment of the debt, depending on the specific institution’s procedures. This document is the basis for the property owner to submit the appropriate application to the Land and Mortgage Register department of the court to remove the mortgage.
If ownership has already been transferred, meaning the notarial purchase agreement has been signed, only the new owner of the property or their authorized representative can submit the application to remove the mortgage.
The standard cost of removing a mortgage is PLN 100. However, if the purchase of the property was financed by a mortgage loan, the bank often requires the new mortgage to be registered in the Land and Mortgage Register in place of the old one. In such cases, the cost increases by an additional PLN 100. If two mortgages are listed in the Land and Mortgage Register, the fee is doubled. The payment can be made online or at an automated payment terminal in the courthouse.
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A common question is whether the court can reject an application to remove a mortgage. The court may only refuse if:
In case of documentation deficiencies, the court sends a notice indicating that the process has been paused and sets a deadline to provide the missing documents. If the deficiencies are not corrected within the specified timeframe, the case will be closed, and the documents will be returned.
Sometimes, after purchasing a property with personal funds, the buyer forgets to remove the former owner’s mortgage. This issue typically comes to light during the next transaction, such as selling the property, when the encumbrance is still listed in the documents.
There are no time limits for removing a mortgage as long as you have the release letter and any required attachments. However, if the documents are lost, reconstructing them may be challenging, especially after a long time.
With the right knowledge and cooperation with experts, you can avoid problems and successfully complete the entire process of removing the former owner’s mortgage from the Land and Mortgage Register.