11. Purchase of an apartment with a mortgage – secondary market.

In case of buying an apartment on the secondary market, the basic step is to analyze the content of the Land and Mortgage Register, which should always be done by a real estate agency before taking any further steps regarding the offer. We are particularly interested in sections III and IV of the Land and Mortgage Register.

If the seller purchased the apartment using a loan, at Leach & Lang we always make sure that he provides a certificate from the crediting bank about the current amount remaining to be repaid. Part of the sale price will then be transferred directly to the lender so that he agrees to cancel the mortgage securing the repayment. Information on the amount of this payment is also necessary for the Notary’s Office preparing the final sale agreement, as it should describe in details the method of repayment the price.

Besides the amount of debt, such certificate should also confirm the amount of any additional fees (resulting, for example, from early loan repayment), as well as information about security take off and the date on which it will occur after the payment of the obligation. The bank is obliged to issue such certificate to the seller for the sale transaction, and once the debt is repaid, the bank grants its consent to cancel the mortgage.

At Leach & Lang, we pay special attention to loans in foreign currencies. It may happen that the outstanding amount exceeds the transaction value of the property, however, it is worth to be aware that such situation should not be the reason for resignation from the transaction. Before the final contract, the seller must settle the difference between the price paid by the buyer and the value of the outstanding amount. At Leach & Lang, we have worked on numerous transactions of this type, when a larger group of foreign investors decided to sell their residential properties through our company.

In terms of the time required to buy a mortgaged property, it does not differ significantly from the average time it takes to buy a mortgage-free property. The difference is due to the need to obtain the relevant documents from the lender, necessary to properly close the transaction in a safe way for the buyer. It is crucial that the buyer cooperates with a proven expert throughout the process, who will keep him informed about the sequence of actions, risks or benefits resulting from proposed solutions.

Because each transaction has its own characteristics and requires individually fitted actions in order to finalize it, for the benefit of both parties, consultants from Leach & Lang with many years of experience will provide you with all necessary information about the process, taking into account individual features of the offer, on the purchase or sale of a property encumbered with a mortgage.