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How to sell a property encumbered with a loan or a bailiff?

Selling a property requires finding a party that would like to buy it and then going through a formal transaction process. It is necessary for the seller and the buyer to visit a notary public, where the notarial deed is drawn up. However, how to carry out the entire procedure for selling the property if it is burdened with a loan or a bailiff?

Sale of an apartment with a loan

In many cases, we buy flats or houses with a mortgage loan. Over time, we may want to get rid of such a property and there is such a possibility, even when the obligation has not been fully repaid. To be able to carry out such a transaction, you must obtain the consent of the mortgagee, i.e. the bank.

In formal terms, the borrower remains the owner of the flat, although the bank is listed in its land and mortgage register as a mortgage creditor. That is why we are able to freely dispose of our real estate. After finding a potential buyer for an apartment, we must go to our bank for a certificate of the loan amount and a promise, i.e. the institution's promise to cancel the mortgage after paying off the liability.

The next steps when selling a mortgage-backed flat or house to the bank for the loan taken out are as follows:

  • Conclusion of a preliminary real estate purchase and sale agreement with the buyer.
  • Completion of formalities related to the financing of the purchase of an apartment by the buyer - these may include taking out a mortgage from a bank.
  • Signing a notarial deed for the sale of real estate.
  • Applying by a notary public in court to make changes to the land and mortgage register.
  • Payment to the bank account of the bank selling the property, the equivalent of the loan, and the remainder to the seller's bank account.
  • Applying at the bank for approval to release the mortgage and transfer it to the buyer.

Thus, it is possible to sell an apartment with a mortgage, step by step, even if the buyer also buys it with financing through such a commitment.

Property with a bailiff - how to sell it?

The bailiff's seizure of real estate may take place due to unpaid debts by its owner. Then the bailiff, acting in accordance with the law, may auction the property to cover the owner's debt from the amount obtained from its sale. However, an apartment or a house put up for a bailiff's auction is sold at a lower price than the market price. All because the starting price in the first term of the bailiff's auction is oszac of the estimate price, and if no sale is made, the second date of the auction is set, in which the starting price is only 2/3 of the estimate price.

If bailiff enforcement is entered in the third section of the land and mortgage register with the bailiff, then you can also try to sell the house or flat. First, however, you must obtain the consent of the creditor, i.e. the bank, to delete the entry. For this purpose, it is necessary to sign a preliminary contract with a potential client. The bank may also require us to make an advance payment for the purchase of the encumbered property. In other cases, it may be enough to present a signed preliminary contract.

The bank may send a letter informing about the completion of the proceedings to the bailiff and the property owner. After about 14 days from receiving the feedback from the parties, we can go to the bailiff for the validity stamp of the decision enabling the deletion of the bailiff proceedings from the third section of the land and mortgage register. With such a document, we go to the land and mortgage register department in the court and delete the bailiff's enforcement there, for which you can wait up to 6 months. You have to pay PLN 200 for deletion.

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