When can you remove the mortgage from your apartment?
Encumbrances on mortgaged real estate can only be removed by the territorial department of state registration, cadastre and cartography. When the mortgage loan is fully repaid, the apartment owner can contact the MFC and send an application to Rosreestr to remove the encumbrance from the purchased property. The registration state agency must make a corresponding entry on this issue.
When removal of encumbrance is allowed:
- All encumbrance restrictions on real estate are automatically lifted if the creditor provides Rosreestr with documents confirming the seizure of collateral real estate from the debtor.
- The borrower and the lender provide the Companies House with a written mutual agreement to lift the restrictions.
- If housing was purchased under the military mortgage lending program, then an application for withdrawal is submitted by the relevant government agency.
- The banking organization sends documentation to Rosreestr confirming that the borrower has fulfilled its debt obligations in full.
- The registration authority has been provided with written consent from the borrower and the lender, confirming that all terms of the loan agreement have been fulfilled.
All these situations make it possible to remove the lien from the purchased property. Removing restrictions will allow the owner to freely dispose of real estate, including donating, selling, exchanging, etc.
For Sberbank's mortgage clients, the system for removing encumbrances has been greatly simplified. When the borrower makes the last payment to the account, Sberbank independently launches the procedure for removing restrictions from the real estate.
The borrower does not have to go anywhere and write an application - the entire procedure is carried out automatically. The borrower learns about the beginning of the removal of the encumbrance by an SMS message that is sent to his phone number the next day after making the last mortgage payment.
Sberbank clients often leave reviews on this issue, noting the convenience of the automatic mortgage removal service.
Registration of removal of mortgage encumbrance
The state body that registers the removal of mortgage encumbrances carries out the procedure free of charge . Self-registration of the repayment of the pledge record does not require additional costs from the applicant.
State duty
If the applicant, after registering the “redemption” of the pledge record, wishes to receive a “clean” extract from the Unified State Register or a new Certificate without a mark on the encumbrance, then such actions are subject to a state duty. Its size is 350 rubles. It is paid before submitting an application for an extract.
What documents may be needed
To cancel the encumbrance, you will have to collect an impressive set of papers. Immediately after making the last payment on the mortgage loan, the client must contact the lender's organization to obtain a certificate confirming full repayment of the debt. Typically, at this stage, the bank employee additionally consults the person on the procedure for lifting restrictions.
When contacting the MFC, you need to make a request, where the citizen indicates his full name, passport and address information, necessary details and information on the property for which restrictions must be lifted. The advantage of contacting the MFC is the fact that local employees help to draw up an application. A package of papers is attached to the application.
To cancel encumbrances you will need:
- a certificate confirming the absence of debt (production takes up to 30 days);
- a bank letter indicating the repayment of all debt obligations under the mortgage loan is sent to the address of Rosreestr;
- statement of credit account;
- a joint application of the borrower and the lender to lift restrictions on the mortgage, certified by a banking specialist;
- mortgage contract;
- passports for all owners who are required to be present when submitting the application in full;
- a certificate certifying ownership of the apartment;
- a receipt confirming payment of the state fee for an extract from the Unified State Register of Real Estate on the removal of mortgage restrictions;
- a court decision if the mortgage is terminated by court.
Not all papers listed above may be needed. A complete list of documentation should be found at the MFC. Sometimes additional certificates or extracts are required. If it is not the applicant who will submit the documents, then a notarized power of attorney will be required.
Package of documents for removal of encumbrance, how and where to submit
The legislation establishes an exhaustive list of documents required to remove the encumbrance after repaying the mortgage:
- statement of the mortgage holder;
- an application from the borrower with the attachment of the bank's mortgage, which contains an inscription indicating full repayment of the mortgage debt;
- a joint statement signed by a representative of the credit institution and the borrower;
- in case of litigation ─ a court decision to terminate the mortgage and remove the encumbrance from the property.
In accordance with the law, when applying to remove the encumbrance from your apartment, the applicant must provide the documents listed in the law, and only for one of the points. However, in reality, registration authorities ask to supplement this list with other documents.
We submit documents to Rosreestr or MFC
Before submitting an application to the registration authority, it is better to consult with employees of the credit institution, since they have information about the requirements of the territorial office of Rosreestr.
You can clarify the list of required documents directly from the Rosreestr authority or the MFC at your place of residence. The package of documents submitted to these organizations is similar.
Often, in addition to an application from the borrower (or jointly with the lender) and the mortgage, employees of the registration authority require a full package of documents:
- civil passport of the borrower and all co-owners;
- mortgage;
- certificate of state registration of property rights;
If the application is submitted with a representative of a credit institution, you will need to provide documents confirming his authority (order, power of attorney, passport, charter).
Package of documents for the bank
One of the rare times when a borrower happily makes a mortgage payment is the final payment.
Before paying off the last installment, you must contact the bank to clarify the amount of payment.
After closing the mortgage, you need to receive from the bank employee all the documents to remove the encumbrance:
- If a mortgage has been issued, you need to put a note from the bank about the repayment of the mortgage debt (the original document is issued within a 10-day period).
- Application from the bank with a request to remove the encumbrance.
Important: often happy borrowers forget to order a certificate from the bank confirming the absence of debt and full repayment of the loan amount, which is often useful.
Withdrawal period
The encumbrance is removed within 3 days, as provided by law. However, the multifunctional center acts as an intermediary between applicants and government agencies, and therefore the time frame for providing services increases. The MFC needs time to send the documentation to Rosreestr.
On average, it takes about 5 days to send, process papers and remove the encumbrance through the MFC. If the owner orders a new title document, the period will increase to 10-14 days.
State duty amount
Removing the encumbrance for Russians is a free service; you will only have to pay for an extract from the Unified State Register, which will cost the applicant 400 rubles. If you order an electronic version of the document, the cost will drop to 250 rubles. A repeated certificate of state registration of property rights is not issued.
Each property owner will have to pay such a state fee.
There is no need to draw up a new document, since both in fact and in law, real estate, after the restrictions are lifted, acquires a status free from the rights of third parties. But in the old certificate of state registration of rights there will be an entry about the encumbrance.
If the owner wants to update the document itself so that it does not contain records of mortgage liens, then he needs to order a new certificate. For its production you will have to pay an additional state duty of 2 thousand rubles. About 10-14 days are allotted for the production of such documentation.
Step-by-step instruction
To remove the encumbrance from a mortgage at the MFC, you need to figure out what documents are needed and what this procedure looks like in practice.
Step 1. Collect a package of documents
You must first contact the bank and obtain a mortgage note, which will indicate full repayment of the debt. In some cases, banks send their representative to the MFC along with the applicant. Therefore, it is better to clarify the procedure in advance.
Along with the mortgage, you will need other documents:
- passport;
- an application, the form of which will be issued on the spot;
- notarized power of attorney (if his representative applies instead of the owner).
Important! On the mortgage there should be o. The document is provided in the original, signed by a bank employee and stamped.
Step 2. Make an appointment at the MFC
You can get an appointment at the MFC on a first-come, first-served basis or make an appointment in advance on the website or by calling the hotline. For example, in Moscow it is, in St. Petersburg it is +7 (812) 573 90 00. The employee will give you a 4-digit code that must be entered in the terminal (at the MFC office) no earlier than 15 before the appointment.
After this, you must provide all documents and fill out an application. The registrar will make copies and return the originals, and will also issue a receipt confirming acceptance of the application. It will indicate a number by which you can track the status of the review.
Step 3. Pick up an extract from the Unified State Register: deadlines
Removal of the encumbrance on the MFC mortgage is carried out within the standard time frame: up to 30 working days. This is due to the fact that the application is sent to Rosreestr, which makes the appropriate decision. After approval, the applicant receives an SMS stating that he can come to the MFC again and receive an extract from the Unified State Register. It will differ from the previous document in the absence of a mark on the encumbrance of the property.
Refusal is possible only in cases where not all documents have been submitted or they contain errors. In other situations, Rosreestr must remove the restriction of rights, after which the applicant will become the full owner of the apartment or other real estate.
How to find out readiness
If the documentation was sent to Rosreestr through a multifunctional center, then you can check the status of the application using the receipt number received at the MFC when accepting the application. To check, you need to go to the center’s website, find the appropriate tab and enter the registration number in the field that opens. The system will display the readiness status result.
If the regional MFC does not have such an opportunity, then you can find out the status of the request by calling the hotline number. The operator needs to dictate the number indicated on the receipt, and he will provide the necessary information.
The most common reasons for refusal
In some situations, an applicant may be denied the removal of restrictions on a mortgaged property. Such situations include:
- Providing an incomplete package of documentation. If the apartment has several owners, then everyone will have to write an application, as well as collect a package of papers.
- If loan obligations are not fully repaid and the banking organization refuses to issue a mortgage. If funds are deposited into the loan account on time, the borrower should check the latest payments. A technical error cannot be ruled out due to which the payment is delayed.
- If the application is submitted from a third party, and not from the owner of the apartment. If the owner cannot submit an application on his own, then he will have to issue a power of attorney for a loved one. Based on the document, the authorized person can submit an application without the owner.
If the bank that issued the mortgage loan is liquidated, then difficulties may also arise with the removal of the encumbrance. In such a situation, you need to find out which credit institution transferred the borrower’s debt, and apply for a mortgage and a certificate of repayment there.
Removing a mortgage encumbrance through the MFC is convenient because it saves a lot of time and simplifies writing an application. Registration takes a little longer, but not much, only 2-3 days difference. If deadlines are not important, then registration through the MFC is the best and most convenient option for removing mortgage restrictions from a purchased apartment.
Is the encumbrance extinguished upon liquidation of the bank?
If the bank ceased to exist as a legal entity or went bankrupt, the borrower must fill out an application form and submit it to Rosreestr. In this case, an extract from the Unified State Register of Legal Entities confirming the liquidation of the creditor must be attached.
In such cases, it is usually possible to trace the path of the mortgage if the right of claim to the collateral property or the rights under the mortgage agreement were assigned to other persons. Payment of the loan and receipt of a mortgage note with a mark will be carried out by the next mortgagee, the legal successor of the previous lender.
