The mortgage agreement is characterized not only by the provision of financing by the bank but also by the transfer of an apartment as collateral from the owner of the property.
When you make a loan agreement for the purchase of the real estate, encumbrance is imposed on the subject of a pledge. In this article, we will look at how the procedure for removing mortgages on mortgages takes place, where to apply and in what time frame it is possible to carry out.
What is a burden and why take it off
Encumbrance on real estate creates a ban on registration actions. Housing remains the property of a bank borrower, but it cannot fully dispose of it without the consent of the bank. Encumbrance displayed in Rosreestre. The following restrictions apply:
- a ban on the sale;
- change of ownership;
- alienation, donation;
- renting out;
- the implementation of redevelopment;
- transfer of real estate as collateral to third-party banks.
Payment of debt under the loan agreement does not mean automatic removal of encumbrance. This procedure requires the submission of a package of documents to Rosreestr or through specialized multifunctional centers.
Therefore, after the closure of the loan agreement, it is important to know how to remove the burden of a mortgage by virtue of the law. Otherwise, to use your own real estate in full will not work.
In which cases the encumbrance of a property is imposed
Encumbrance is a restriction in the rights of the owner of the property. The most common case is when an apartment is in a mortgage and acts as a collateral. For example, the buyer will not be able to purchase an apartment, which is pledged to VTB 24, without a permit for such a transaction from the bank.
Here, of course, various solutions are possible with the early repayment of the loan or with the transfer of mortgage obligations to the buyer, but it will not be possible to register the housing for the new owner of the mortgage apartment without the knowledge of the banking organization.
You can check the availability of encumbrance by contacting the Regpalatu – the registration office of the Federal Registration Service for Real Estate Rights.
In addition, the burden may arise as a result of an arrest by a court decision. Also, if one of the owners is a minor child or an incompetent person. There is a separate type of burden that is called “life annuity”.
This is when the ownership of the apartment is transferred to the renter, who undertakes to pay a certain fixed amount, not lower than the subsistence minimum, in favor of the renter on a life-long basis. Thus, full property rights are transferred after the death of the recipient.
Burden is also a lease agreement. According to the law, those who rented it have the primary right to live in an apartment. And the new owner is obliged to comply with the terms of the lease agreement on the same conditions and terms, agreed with the previous owner.
Procedure for removing mortgage charges in the GFI
Multifunctional centers are a convenient way to communicate with government agencies and individuals. If the GFI operates in a particular locality, then there is no need to apply to the regiment hall independently. All documents can be transferred and received through such a center. Stages of action will be as follows:
- pay off the debt to the bank. And in the case of early closing of the mortgage, write the appropriate statement about the cancellation of the entire amount sufficient to complete the transaction;
- wait until the contract is canceled, and go to the office to get a certificate that the obligations have been fulfilled;
- obtaining a mortgage with the signature and stamp of the bank;
- collecting the rest of the documentation;
- appeal to the GFI to file an application for the removal of encumbrances;
- waiting for 3 working days to complete the transaction.
After that, the owner of the property will be able to dispose of it at their discretion. In this case, the banking company will no longer be able to influence the actions of the former borrower. If a third-party person acts on behalf of the client, then he must perform all procedures by proxy, notarized.
If the contract is refinanced, the housing is saved in the pledge, but the burden is transferred to another bank. The client does not have to contact the GFI directly, legal entities will independently re-execute the pledge agreement with a sufficient number of documents that the borrower transmits when refinancing in a bank.
Collection and submission of required documents
To remove the real estate under the mortgage contract will need a certain set of documents that can be appointed by the state structure, depending on the situation. From the standard list of documents can be listed:
- certificate of closing the loan agreement;
- account statement of cash flow, which shows the last receipt and write-off of money;
- statements from the bank and the owner to remove the encumbrance. A sample can be provided by the GFI as well as a bank;
- passports of owners;
- mortgage from the bank in the original with information on the fulfillment of obligations in full;
- mortgage agreement and payment schedule;
- sales contract or other title documents;
- Receipt of payment of state duty.
If part of the documentation is transmitted electronically through the website of public services, then a digital signature is required. Documents transmitted through the GFI must have stamps and signatures of the responsible parties.