When can a mortgage be deleted from the land and mortgage register?

The mortgage entry does not disappear from the Land and Mortgage Register automatically. Failure to do so may make it difficult to sell your property or charge you another loan. So it’s good to know when you can plot a mortgage from your land and mortgage register and how to do it.

Who can delete a mortgage from the land and mortgage register?

bank

In principle, the owner of the property is obliged to make or delete entries in the land and mortgage register. If the mortgage is removed from the land and mortgage register, it is in its best interest to meet the obligation. Only who is the obligated person?
In many cases, the property remains jointly owned, e.g. by spouses. In this situation, they may enter the book together and so should be the application for deletion of the mortgage.

However, it is exceptionally worth submitting an application on your own or bringing a case to court, e.g. when a co-owner refuses to cooperate, although the claim has actually been repaid.
On behalf of the enterprise or organization, a relevant application may be submitted by a person authorized to manage the enterprise – the owner, the management board, and if so follows from the articles of association, also a proxy or president/member of the management board alone.

There may also be legal situations in which a person who is not an owner but has limited property rights to real estate, will apply for the removal of the mortgage. These will be, for example, persons with cooperative ownership rights to the premises, or (until the end of the year) perpetual users.
In exceptional cases, the court may decide on the removal of the mortgage.

When can a mortgage be deleted from the land and mortgage register?

When can a mortgage be deleted from the land and mortgage register?

The answer is very simple. A mortgage may be removed from the book after the liability it has secured has been settled. Earlier, this is impossible unless the court finds the commitment invalid. Theoretically, however, there is no time limit within which a mortgage entry should be deleted once the debt has been settled.

What does it take to delete a mortgage from the land and mortgage register?

The application for deleting an entry must be supported by proof of repayment. Banks issue standard Debt Repayment Certificates. The same document may be issued by any other creditor, but they must include:

  • land and mortgage register number in which the mortgage was entered,
  • debtor’s data (name, address and tax identification number in the case of companies, and in the case of natural persons: registered address, social security number, name, and surname),
  • Mortgage title, along with an indication of the amount of debt,
  • Confirmation of the total repayment of the mortgage-secured debt,
  • Consent to delete the mortgage entry from the land and mortgage register.

The issuing of such a certificate is the creditor’s responsibility and he should not charge any fees for it. It is worth remembering that such a certificate should be notarized, which may already involve fees for the notary.

Problems with mortgage deletion

Problems with mortgage deletion

In most cases, deleting a mortgage is just a formality that needs to be completed. However, there are cases when it is much more difficult.
For example, if we are dealing with several co-owners, the lack of signature of one of them may prevent the mortgage from being deleted. This happens in the case of divorced marriages, but also the departure of one of the co-owners abroad and payment of the liability by the others.

In the event that the commitment was met several years ago and the owner has not yet thought about deleting the entry, it may be even more difficult. For example, there may no longer be a creditor who would sign a certificate of repayment (the natural person may have died and the legal entity may have been dissolved), or documents confirming the commitment and its repayment may have been destroyed.