Three reasons to cancel a mortgage on the property register

The end of a mortgage is one of the most desired moments for most Spanish citizens. Once the mortgage has been finalized, it is necessary to proceed with the registration of its cancellation, an important step that many people skip.

The end of the mortgage is the moment when you no longer have to pay the mortgage installments every month, which means a significant economic relief. Once the mortgage is finalized, it is necessary to begin recording its cancellation, which many people skip over.

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It is important to understand the difference between economic cancellation, when the mortgage ends, and registration of cancellation, when the Registry of Real Estate determines that the property no longer has a mortgage. Just as it is necessary to register the signing of a mortgage,''It is also necessary to register its cancellation. This procedure is very important because even if the mortgage is paid, it will still appear as an encumbered dwelling in the Simple Extract from the Real Estate Register.

Although cancellation registration is not compulsory, Registrars in Spain point out its importance for three reasons:

It frees the property from encumbrances, allowing a new mortgage to be concluded;
the value of the unencumbered property, in terms of property value, is higher than that of the property encumbered with a mortgage;
and if the property is sold, the buyer will require that it be free of encumbrances and mortgages;