Consequences of an unregistered mortgage at the Property Registry

Highlights

Real Estate

The Real Estate Registry is a public institution where real estate properties built in Spain are registered in order to officially establish the owner, the rights to the property and all encumbrances.

Spain has traditionally been a country where many people own real estate. Buying a home is part of many people's future plans and is one of the most significant economic investments during their lifetime. This transaction also comes with unavoidable expenses such as paying taxes, utility bills or a mortgage loan.

Mortgage is usually an integral financial product required for''buying real estate, as most people do not have the full amount needed to pay the full cost of the home, which is usually hundreds of thousands of euros, at the time of signing the purchase agreement. The banking organization provides the borrower with the loan amount in exchange for repayment of this amount together with the corresponding interest.

After repaying the mortgage loan, it is advisable for the property owner to cancel the registration of the mortgage in the Real Estate Registry. Legálitas explains the difference between repayment of the mortgage debt and its registration, how to carry out this cancellation and what the consequences may be if this is not done.

For a mortgage to be fully discharged, it is not only sufficient to complete the repayment of the debt to the bank,''the property will die, it will take more time and complexity for the heirs to remove the encumbrance.

Although the registration of mortgage cancellation should be handled by the property owner himself, he can contact the management company to have them perform all the necessary procedures.

When a person has finally paid off their mortgage debt, they must carry out a registration mortgage cancellation so that the property can be counted as free of this encumbrance.

What procedures must be followed to effect a registration deregistration?

• Ask the bank for a certificate of absence of debt - this action does not include a fee.