Buying an apartment is one of the most important decisions for many of us. The very decision to take a mortgage must be well thought out because the repayment of the commitment is a prospect of many years. A mortgage – as the name implies – is a loan secured by a real estate mortgage. We can only put it on the land and mortgage register. It also allows us to determine the legal status of the property.
When we choose the location of interest to us, before making a purchase, we should carefully analyze who is the real owner, or whether the property is not, e.g. encumbered. It is also possible for us in the land and mortgage register. But what if the property we are interested in does not have it? Is a mortgage possible without a land and mortgage register?
Land and Mortgage Register – what is it?
Land and mortgage registers are one of the most important real estate documents – both apartments, houses, and plots. They contain the legal status of real estate and data, including owner or area. They consist of four chapters in which we distinguish:
- Chapter I – information about the property (area, the layout of the building, access to the parking lot, etc.)
- Chapter II – information about the owner (number of persons who can dispose of the property, users’ rights)
- Chapter III – information on rights and claims (this chapter contains data on a possible bailiff’s execution)
- Chapter IV – information on mortgages (data on mortgage encumbrance, amount of mortgage, etc.)
A flat without a land and mortgage register
Buying an apartment without a land and mortgage register should be a well-thought-out decision, requiring caution and a thorough analysis of documents, including the legal status. Although buying real estate without a land and mortgage register is much riskier, it allows us, for example, to negotiate prices.
It is worth noting, however, that such a transaction will require a much larger number of formalities, hence – the procedure will be more time-consuming.
If you want to purchase a flat with a loan, you must remember that the customer will have to bear the higher costs of bridging insurance, which is a security for the bank until it is entered into the mortgage. When this process takes longer than usual, the cost of such insurance will also be higher.
Buying an apartment without a land and mortgage register – mortgage
The vast majority of flats without land and mortgage registers are cooperative-ownership properties. Do you want to buy a private flat without a land and mortgage register, but you don’t know how to check whether the person claiming to be the owner really is? You can ask the owner for a notarial deed or use a court decision or administrative decision based on which he obtained the right to the property.
After determining who the owner is or how many of them are if the property is jointly owned, you should ask him for a certificate that will constitute the right to establish a land and mortgage register. This certificate should include the following data:
- information about the owner
- property address details
- land data (registration number)
- detailed property plan (area, number of rooms, toilets, bathrooms, information about having a parking space or garage)
- certificate of no land and mortgage register and certificate of no contraindications to its establishment (important: both certificates should be signed by a person authorized to issue such a certificate)
- certificate of non-payment of maintenance fees
- confirmation of the purpose of the certificate – information that the document will be used to establish the land and mortgage register.