A mortgage is a real right through which certain movable or immovable property is linked to the obligations of one or more holders, which usually consist of paying a loan. The person responsible, as long as they meet the deadlines, will be the owner of said assets, which are generally real estate. However, the mortgage does not end by paying the last installment.
When the amount owed is finally repaid, and money is no longer owed to the bank or entity responsible for the loan, there is still one last step to be taken. This is the housing registration information, which shows the mortgage that has been paid.
Proceed then so that the property appears registered without charges, or else later there may be problems with the information about the property. Some problems of not modifying this data may be greater difficulties when selling the home, or if you are looking to extend the mortgage or acquire a new one.
Ask the bank to cancel the mortgage
Canceling the mortgage allows the charges to be eliminated in said registry. Although all relevant fees have already been paid, failure to act will not result in the label “free of charge”, which is detrimental for the reasons already explained. This happens like this because the Property Registry and the bank will still reflect the information about the mortgage.
So, to eliminate the registration there are two possible ways, according to the Bank of Spain. The most convenient for the user is to request said procedure from the bank. He himself cannot refuse, but nevertheless he will delegate said task to an agency. Due to this, he will be able to charge his client commissions and expenses, although he is obliged to indicate the amounts before proceeding to do so.
Cancel it yourself
The other possibility indicated is to carry out the procedures yourself, something that will not be free of costs either. According to the highest Spanish banking authority, these are the steps to follow for the registration cancellation of the loan:
- To begin with, and at no cost, you must request a “zero debt certificate” from the entity, or certificate of economic debt cancellation.
- Then, it is necessary to go to a notary and deliver said certificate, so that the notary will create the deed of cancellation. Immediately afterwards, they will contact the bank, and they will send their own representative. The first can collect the fees from him, but the other envoy cannot charge the client neither the costs of travel nor those of the procedure.
It should be added that this representative does not have a fixed term to appear at the notary, although he is obliged to “act with the utmost diligence”, according to the Bank of Spain.
- Third, and also free of charge, the person concerned will go to the regional office to fill out the “Documented Legal Acts” document.
- Finally, you must go to the Property Registry and provide the documents already obtained: debt cancellation certificate, cancellation deed and Documented Legal Acts tax. Finally, the mortgage can be canceled, although again a cost must be assumed, which in this case will be the registration fees.
