Mortgage loan application – how to submit it?

One of the most important things that should be done each time the mortgage is repaid is to delete the mortgage from the land and mortgage register. In some cases, the whole procedure takes several months. The submission of an application for the deletion of the mortgage must not be forgotten – otherwise, the documents will still contain information about the debt. 

Mortgage loan – what is that?

Mortgage loan - what is that?

A mortgage is a limited property right. Pursuant to the Polish Act on Land and Mortgage Registers and Mortgage, this right was created to secure a loan or other claim that arises from a specific legal relationship between the debtor and the creditor. Translating this into Polish: a mortgage is a law that allows creditors to protect themselves against default by the debtor.

A mortgage may be established by means of a statement in a notarial deed – then it is a contractual mortgage. This type of mortgage most often occurs when a person buying a property obtains funds to purchase it under the Stage Manager loan, and the Stage Manager institution will be secured by buyers voluntarily establishing an appropriate mortgage for it. Another type of mortgage establishment is the establishment of a court order or tax authority decision. This obligation is determined by a compulsory mortgage under Polish law.

Application for mortgage deletion after loan repayment – key information

mortgage loan

Whenever we pay off your entire mortgage or loan, we must ensure that the mortgage is removed from the land and mortgage register. This is extremely important. However, this requires that you meet several important formalities and obtain permission from the creditor, i.e. the Stage Manager institution that granted us the loan. In addition, it is necessary to complete the appropriate form and pay the fee. Below, step by step, we explain how to complete a mortgage deletion application, who is required to complete it, and where and how much to pay for mortgage deletion.

As you know, a mortgage is one of the best ways to secure a loan, credit or another contract. It consists of encumbering the property – this also applies to cases when it is sold to another person. The mortgage is entered in the land and mortgage register, which is a great help. In this way, all people potentially interested in buying a specific property can quickly and easily verify that there is no mortgage on it. After paying off each mortgage, you can delete the mortgage. How to do it

Who can remove a mortgage loan from real estate?

Who can remove a mortgage loan from real estate?

Once we are able to pay off the mortgage, many people ask themselves the following question: who can remove a mortgage from the property? Will the bank take care of this matter and draw up a mortgage for us?

It is worth knowing that the bank, or mortgage creditor, is required to cooperate with the owner of the property so that the mortgage is removed from the property as soon as possible. This is indicated in art. 100 of the Act on Land and Mortgage Registers and Mortgage. However, you should be aware that no Stage Manager institution is required to submit a mortgage cancellation application to the court. Only the owner of the property is required to complete and submit to the court an application for deletion of a mortgage.

The bank must grant consent for the mortgage to be removed

Banks and other mortgage creditors must show cooperation when deleting a mortgage from the property. What does this mean in practice? That after the loan has been repaid by the consumer, the bank must issue a document (the so-called moral receipt) which will contain information that the debt secured by the mortgage has already been repaid and there are no obstacles to remove the mortgage from the property.

In the event that the mortgage was established for the benefit of the bank due to the granting of the loan, the consent to delete the mortgage does not have to have notarial signatures. It is enough for us to have a written statement issued by bank employees.

It is best to attach to such declaration documents that will confirm that the persons signed under the declaration were entitled to represent the bank. Do banks charge for issuing this document? Each bank has its own policy in this respect. Some banks issue documents free of charge, while others have their price list.

In a situation where the mortgage was intended to secure a private loan, then consent to delete the mortgage must have notarized signatures. Before creating such a letter, it is best to consult its content with an experienced notary.

To illustrate the principles of operation in such situations, it is worth using an example. The liability was secured by a mortgage on this property. At the time of repayment of the last installment of the loan, Jan must contact the bank’s consultant and ask him to issue a maze letter, i.e. the creditor’s consent to remove the mortgage from the property. For issuing this document, the bank may require a payment from us in accordance with its price list.

The creditor does not agree to the mortgage being deleted

In some situations, it happens that creditors do not agree to remove the mortgage from the property. Many people wonder what they can do in this case. A much longer procedure will be ahead of us. It is necessary to submit a lawsuit to the court to reconcile the content of the land and mortgage register with the current legal status.

It is our duty to prove in court that the debt secured by the mortgage has already been repaid. When a final and favorable judgment is issued, it will act as the creditor’s consent to remove the mortgage from the property.