What is an encumbrance
An encumbrance is a restriction that prohibits the borrower from freely disposing of real estate that was purchased with mortgage funds and acts as collateral for the loan.
The borrower is the owner of his own square meters, which gives him the right to live on the premises and fully use utilities. At the same time, by law, the bank has the right to impose a ban on property transactions in relation to the collateral object, that is, the borrower cannot carry out sales, donations, or exchanges with the collateral.
For the bank, the collateral acts as a guarantor for the loan. Even if the client is unable to repay it, the credit institution will always be able to sell the collateral and thus compensate for its costs.
The moment of making the last mortgage payment does not mean for the borrower that after that all restrictions on the mortgaged apartment are automatically lifted.
If a person has paid off a mortgage, then the task of how to remove the encumbrance is regulated by law and after repaying the loan obligations it is necessary to complete a number of bureaucratic procedures.
It is not the bank that initiates the process, but the borrower personally. To do this, he needs to contact Rosreestr and provide a package of required documents. It is recommended to do this in a timely manner, since today it is impossible to carry out legal transactions with property under encumbrance and in the event of such a need, serious problems will arise.
Removal of encumbrances through State Services and in the MFC
Reading time: 6 minutes Russian legislation provides for restrictions on the right of ownership of real estate. In some situations, an encumbrance is placed on property, which, without depriving the owner of the right of ownership, significantly limits the ability to dispose of it.
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To sell, donate or exchange real estate, you need to figure out how to remove the encumbrance from an apartment in the MFC and through State Services. In legal terminology, the concept of “encumbrance” means that, in addition to the owner, third parties lay claim to the property for various reasons.
The following types of restrictions are distinguished: rent. If a tenant lives in the apartment, the new owner cannot make purchase and sale transactions until he evicts; rent. The agreement provides for the transfer of ownership to the new owner in exchange for assistance and provision of everything necessary to the current owner throughout the latter’s life; mortgage.
What documents are required
The procedure for removing mortgage encumbrances at Sberbank or another Russian credit institution is clearly regulated by law and internal rules of banks.
Removing the encumbrance from an apartment with maternity capital, obtained with the participation of housing certificates or purchased as part of the standard offers of credit institutions, is carried out according to one scenario. In this case, the borrower can independently choose the desired method of submitting papers to the state registration authority.
The list of mandatory documents required to be submitted to Rosreestr can be clarified at the branch of the state organization or from bank specialists. This recommendation is due to the fact that in different Russian regions the list may differ slightly.
Payment of the last payment and full repayment of loan obligations gives the borrower the opportunity to receive a certificate confirming that the individual has no debt to the bank. The document is provided after submitting such a request to the bank, where such a service is free for the client. The average time for issuing a certificate is 3 business days. Having such a document will help avoid misunderstandings in the future. In practice, there are situations when, after the bank has carried out recalculations, the client is additionally credited with pennies, as a result he falls into the unreliable category and acquires a bad credit history.
To begin the procedure, the borrower fills out an application. The document is drawn up on a sheet of A 4 format, submitted in the presence of an authorized bank specialist or by power of attorney. The sample can be obtained from the organization’s employees or downloaded from an electronic resource. The following information is required:
- personal data of an individual;
- bank details;
- information about the loan taken and the absence of mutual claims;
- request for the ban to be lifted.
The following documents will be required to remove the mortgage encumbrance in Rosreestr:
- a letter from a credit institution confirming that an individual has no debt, possibly confirmation in the form of an account statement;
- loan agreement;
- mortgage note indicating the fulfillment of obligations and the date of their repayment;
- passports of all participants in the mortgage agreement;
- documents on the right of ownership of property;
- receipt of payment of state duty.
In the event that the mortgage has ceased to be valid by decision of a judicial authority, a document from the court is additionally presented.
Through the court
Earlier we mentioned a little about the possibility of lifting restrictions through the court, now we will look at it in more detail.
This method is used if:
- The seller of the property died before the new owner was registered.
- The apartment is under arrest for outstanding debts to the bank or the state.
- After the divorce, the spouses had difficulties with the division of property.
The list of required documents is as follows:
- Claim for removal of encumbrance or seizure.
- Home owner's passport.
- A document confirming the ownership of the apartment.
- A copy of the court order to seize the apartment (if the former owner has died, then this is not necessary).
- Documents confirming the reason for the arrest or death of the seller.
Among all the listed documents, the application is the priority. It should contain:
- The name of the court, which is located in the same area as the seized apartment.
- Applicant's passport details.
- Information about the initiators of the encumbrance.
- The reason why you went to court, for example, illegal encumbrance.
- Indicate what decision you expect from the court.
- Date, signature and list of papers attached to the application.
After the court makes a decision, all you have to do is go with him to the registration authority to remove the pledge from the real estate.
A sample statement of claim for the removal of an encumbrance can be viewed here.
How can I submit documents?
Currently, an individual has several options for submitting documents to the state registration authority. Each of them has certain advantages and disadvantages. You can make a withdrawal using the following options :
- personal visit to the territorial office of Rosreestr;
- submission by sending a valuable letter;
- contacting the MFC;
- using the service of the State Services website;
- through special real estate agencies.
The most common is a personal application by an individual to Rosreestr and direct interaction with specialists of the territorial office. The advantage of this method is the absence of intermediaries. The disadvantage is associated with the need to spend personal time visiting the Federal State Registration Service.
Individuals can send documents by valuable mail. In this case, notarization of signatures on applications will be required. Valuable cargo is sent with the preparation of an inventory of the contents and receipt of notification of delivery of the valuable parcel. This method is the longest of all existing ones, since it requires time to visit the notary and the post office. In this case, the personal presence of the borrower when receiving the papers is considered mandatory.
In recent years, the method of processing documents through MFC services has become increasingly popular. Similar centers today operate in many Russian regions and with their help you can obtain various government services. Currently, this method of removing encumbrances from collateral is the simplest and fastest.
The ban can be lifted through the use of Internet technologies. In this case, the person does not even need to leave the house. Submission of documents for withdrawal in this case is carried out through the State Services website, but to use this opportunity you must first register, have a personal account and the right to electronically sign. If such requirements are met, an individual can submit documents online. If it is not possible to put an electronic signature, the borrower can use the website service to obtain a coupon to visit Rosreestr at a time convenient for him.
In the real estate market today there are many agencies specializing in document preparation. If desired, an individual can contact such intermediaries to carry out the procedure. Consultations and work of specialists will need to be paid at the company’s rates, but the client receives qualified assistance.
How to remove an encumbrance from an apartment through the State Services Online portal
» Author Anton Velichko Reading time 4 min.
Published 10/25/2018 How to remove the encumbrance from an apartment through State Services Online and quickly, step-by-step instructions for former mortgagees. Having paid off the mortgage, every owner asks the question of how to quickly remove the encumbrance from the purchased home, and this is not easy to do, especially when there is sorely not enough time to physically visit the Rosreestr Office or the MFC.
The State Services website comes to the rescue, where you can remove the encumbrance from your apartment without leaving your home or office.
A small educational program: when purchasing an apartment in a new building or the secondary market using borrowed funds from a credit institution, two entries are made in the Unified State Register of Real Estate:
- imposition of an encumbrance on property by force of law and in favor of the bank that issued the loan.
- about the fact of acquisition of property rights;
The presence of a second entry deprives the new owner of full disposal of the acquired real estate.
When to go to court
In a number of cases, using the standard procedure for lifting the seizure of residential real estate is impossible, since there is no consent of the mortgagee. In this case, the borrower has only one option: going to court. Such situations include:
- bank closure;
- absence or death of the creditor;
- unwillingness of the creditor to give voluntary consent.
Such a procedure is always lengthy in terms of time and amount of effort expended; proceedings regarding seized property can take several months. A complete list of documents regarding mortgaged housing must be submitted to the court. All checks, receipts and other payment documents are used as attachments. The beginning of the procedure is initiated by the borrower filing a statement of claim with a full description of the circumstances of the case. It will take some time to consider the situation and make a decision and generate a notification.
If a positive decision is made, an application, a list of required papers and a document with the court decision are submitted to the registration authority.
What encumbrances are imposed on the apartment?
Encumbrances on an apartment come in the following forms:
- rent;
- easement;
- seizure of the apartment;
- trust management of the apartment;
- annuities with life maintenance;
- guardianship; mortgage of an apartment;
- belonging of the building in which the apartment is located to the fund of cultural or historical monuments.
Encumbrances restrict any actions with the property. They can be imposed upon concluding a contract or by a court decision.
For example, due to the registration of a mortgage. Any form of encumbrance must be registered with the cadastral chamber.
You can get information about the encumbrance of your home while at home, simply by using the Internet. You just need to visit the official website of Rosreestr and fill out the appropriate application.
Feeding algorithm
Removing a mortgage encumbrance is a clearly regulated process consisting of several successive stages. The procedure is as follows:
- personally contact the bank to obtain the necessary original documents and make copies of them;
- payment of state duty;
- taking an electronic coupon to make an appointment with Rosreestr;
- filling out a joint application with an authorized bank employee, transferring a package of documents to a specialist for verification and receiving a receipt from him.
After this, the client is informed about the date of possible receipt of documents. On average, the period for removing an encumbrance in Rosreestr takes 1 month; in some cases, if additional checks are necessary, the process may take 2 months.
Remove mortgage encumbrance through government services
We invite you to read the article on the topic: “remove mortgage encumbrances through government services.”
The article contains comments from professionals. You can ask the lawyer on duty all your questions. Contents It’s not enough just to get a positive decision from the bank and repay the debt on time; you should take a responsible approach to the issue of removing seizures from real estate. It is necessary to apply and remove encumbrances at the Federal Service for State Registration, Cadastre and Cartography.
Let’s look below at how to remove an entry in Rosreestr online and study in detail the instructions for all the borrower’s actions.
Features of the mortgage procedure No matter what the bank client went through in the past, be it buying an apartment on the secondary market or purchasing living space in a new building, two entries were made in the Unified State Register for the transaction. The first talked about the emergence of ownership rights to the purchased property, but the second confirmed the actual seizure of the property, where a financial organization became the mortgagee.
