Finalizing a property purchase involves several official steps, with title deed transactions being the last stage. Verifying the absence of a mortgage on the property is essential before transferring the title deed. A mortgage secures a property as collateral for an existing or future debt. If a mortgage exists on the property you’re purchasing, you’ll become responsible for the debt after the title deed transfer. Consequently, any existing mortgage on the property during the title deed transfer could pose problems.
To check for an existing mortgage, the property owner should conduct a mortgage inquiry and provide the buyer with documents stating “no debt” for the property in question. Mortgage information is never disclosed to third parties.
There are two ways to inquire about a mortgage on a property:
1) Conduct a mortgage inquiry via the e-government portal. Visit the title deed information inquiry section on the e-government portal:
2) Visit the Land Registry Office to inquire about a mortgage.
Present your identification card and request documentation confirming the presence or absence of a mortgage on the property.
Disclosing title deed information to third parties is prohibited by law. Consequently, third parties cannot access debt or mortgage information on title deeds. It’s also legally inappropriate to inquire about someone else’s deed.
To initiate the mortgage removal process, you must first pay off the entire debt. Then, apply to the bank to request mortgage removal.
The application process for mortgage removal may vary between banks and might require waiting for certain transactions. During this time, the bank will review your debt file. If the bank approves your request, they will issue a mortgage release letter. Without this letter, the mortgage cannot be removed. The bank delivers the release letter to the General Directorate of Land Registry and Cadastre, which then processes it and removes the mortgage on the property.
A mortgage release letter is a document prepared by the bank to remove a mortgage once a borrower has fully repaid their debt. Banks usually issue these letters to borrowers in exchange for a fee.
Property tax debt information is not shared with third parties. To obtain real estate debt information, you can use the e-Government application or contact the relevant municipality. Buyers should request a “no debt” document from the seller. The previous owner is responsible for any property tax debts on sold properties. However, the law may hold the new owner liable for unpaid old property taxes on the property.
In conclusion, conducting thorough mortgage and property tax debt checks is a vital step for home buyers to ensure a smooth and hassle-free property purchase. By using available resources such as e-government portals and visiting the Land Registry Office, buyers can confirm that the property is free from mortgages and tax debts before finalizing the transaction. Being diligent about these checks helps buyers avoid potential financial liabilities and legal complications, providing peace of mind in their new home investment. Always remember to request “no debt” documentation from the seller, and be aware of your rights and responsibilities when it comes to property tax debts.