Cancel your mortgage in the Registry before selling your apartment and you will save money

It is common for some sellers to finish paying their mortgages to the bank, but not cancel the debt in the Land Registry. What many probably do not know is that in order to sell a house it must appear completely free of charges and, to eliminate them, you have to do a procedure called cancellation of the mortgage. The problem is that if it is not done on time, that is, before you have a buyer, it can end up being more expensive than you think. How can you cancel a mortgage in the Registry and avoid spending too much money? From the financial comparator they give the answer to this question.

Doing it on time allows you to avoid the bank

The bank with which the loan was contracted or the buyer’s entity can be in charge of doing the entire process of canceling the mortgage. That is, they can take care of requesting the cancellation deed from the notary, filling in and submitting the tax on documented legal acts (IAJD) to the Treasury and taking all the documentation to the Registry to lift the load, but for that reason banks or their collaborating agencies usually ask for a very high provision of funds.

It must be taken into account that the mortgage cancellation costs are borne by the sellers and, as a general rule, banks usually ask them to deposit a high amount of money in an account to cover all the expenses of the process ( notary and registry). To this amount are added the fees, which are also usually significant, so the total cost of paying off a mortgage with a bank can be up to 1,000 euros.

For this reason, it is recommended cancel the mortgage by registration beforetake the step of selling the apartment, in order to avoid doing it with a bank and opt for other ways. If this process is left for the last moment, the buyer’s bank may oblige the seller to do the process with his agency, because it has to make sure that the home is completely free of charges. Otherwise, your customer, who in this case is the buyer, will not be able to purchase it.

Other cheaper ways

An independent management company, that is, one that does not have any collaboration agreement with a bank, may request a much lower provision of funds. Not just because It tends to charge lower fees, but also because it also asks for less money to pay for the notarial and registration costs of themortgage cancellation process.

To get an idea, an independent agency can ask for about 180 euros to pay for the notary, about 200 euros to pay the Registry and just about 100 euros for fees. That is to say, I would charge less than 500 euros to do all the paperwork, which is in stark contrast to the 1,000 euros that the bank can charge. This route saves money and has the advantage that a professional is still in charge of carrying out the procedure.

Another cheap way to do the paperwork is do the whole process on your own. In this way, the person only has to pay the notarial and registry expenses and avoids paying the management fees. Of course, the seller must take care of all the bureaucratic paperwork: ask the bank for the zero debt certificate, go to the notary to request the preparation of the deed and then look for it, go to the Treasury to present the IAJD , present the documentation in the Registry, etc. This, with the risk of making errors due to ignorance that may delay the cancellation process and, therefore, the sale of the home.

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