Buying a mortgaged apartment

Posted: August 15th, 2013 | Author: | Money

Buying an apartment that is mortgaged for some people has terrible connotations.  At the end of the purchase of real estate, which has already been imposed debt seems to be risky. In practice, however, if we approach things properly, then there’s no too much risk and everything goes smooth as butter.

woodleywonderworks / photo on flickr

woodleywonderworks / photo on flickr

First of all, the debt must be repaid and the mortgage removed from the land register (it is in the fourth section of that). Creditor can pay the property owner or the person who buys it. In the first case, it should be ensured that the debt has been repaid, and the entry removed before we purchase the property. Most, however, the amount of debt is so large that the landlord pays it off with the money that he obtained from the sale of the property. Since this situation is the most common is worth discussing.

First of all, do not believe that the seller pays the debt as soon as you buy back the property. Maybe not everyone is a thief, but it is not worth risking. To do this, draw the appropriate agreements and instruments, taking into account the fact that the buyer pays the claim. The seller is obliged to submit a document from the creditor, which indicates the exact amount of the debt and the bill for what it is to be repaid, as well as a very important agreement on the cancellation of a mortgage lender after the full repayment of the debt.

The buyer in this case is divided into funds for the purchase of two parts, one of which goes to the account of the creditor, and the other on account of the seller. After repaying the debt the creditor shall issue a certificate which allows the deletion of a mortgage. This certificate shall be attached to the conclusion that we send to the court land and mortgage. The cost of such an operation is currently 100 pounds and is borne by the seller. The decision of the court gets a new owner via email. Address for service is taken from the deed.

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