How to remove a mortgage from the land register?

What is a mortgage?

Quite often in various kinds of credit and financial guides, topics related to mortgages are discussed, but relatively rarely can we come across a mere explanation of what a mortgage even means. Many people to this day think that a mortgage is a property on which the bank has created a security, which is not an accurate statement.

In fact, a mortgage is a limited right in rem of a creditor, the purpose of which is to secure his interests in the event of non-payment of the debtor’s obligation. In the case of home loans commonly referred to as mortgages, the term mortgage means only that the bank, at the time of granting the loan, will make a security interest in the financed property, which involves the institution of an entry in the real estate register.

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If the borrower (debtor) stops paying the loan installments, or even goes into debt to other creditors, the bank will have priority on a certain asset of the debtor, in this case, precisely the property on which the mortgage was established. Thus, it will be able to seize it, sell it, and then recover the money lent to the debtor. Other creditors will be satisfied from the remaining assets of the debtor.

Who can become a mortgage creditor?

Before we get to the explanation itself of how to remove a mortgage from the land register, it is worth describing in a few sentences who can become a mortgage creditor, that is, in whose favor a mortgage can be established. This is because it is not only the banks that provide housing loans, although in fact they are the ones that most often appear in real estate registers.

A mortgage creditor in Poland can become:

• A natural person, such as a person in whose favor alimony has been ordered by the court
• Banks, Spółdzielcze Kasy Oszczędnościowo-Rozliczeniowe (SKOKs), providing housing loans
• Businesses regardless of legal form, i.e. limited liability companies, joint stock companies, limited partnerships, general partnerships, etc.
• Public administration bodies or state institutions. These include tax offices, Social Security, municipal offices, etc.

However, it should be noted that a mortgagor can become a mortgagor through an agreement with the debtor (contractual mortgage) or through a court or public administration body ruling (compulsory mortgage).

How to delete a mortgage from the land register?

In order to cancel a mortgage from the real estate mortgage book, first of all, all obligations under the contract with the mortgage creditor must be paid. Thus, in the case of home loans, this will be full payment of all loan installments and related costs.

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If you have successfully closed the outstanding debt, you should apply to the creditor for a so-called mazal letter, in which he confirms the repayment of the entire debt. The mazal letter must include:

• Details of the property,
• Details of the repaid obligation,
• Type of mortgage established (forced or contractual),
• Data of the recipient of the mazal letter,
• Confirmation of termination of obligations secured by mortgage,
• Consent to the removal of the mortgage entry from the land register,
• Signature of the person / persons authorized to issue the mazal letter.

In most cases, the bank will automatically issue such a document, but it may be necessary to request it in person.

Application for deletion of the mortgage from the land register

After receiving the mazal letter from the creditor, you must go to the relevant court department and apply for the deletion of the mortgage from the real estate register. It will be necessary to submit several important documents, which include:

• a completed WK-WPIS form;
• a statement by the creditor (e.g., a bank) about payment of the obligation and consent to the deletion of the mortgage (mazal letter);
• powers of attorney of the persons signed under the statement on the basis of which it was issued;
• proof of payment of the court fee;

After submitting the complete documentation to the court, the authority will, within the next few weeks, delete the mortgage from the land register of the apartment, house or other real estate.

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Deletion of a mortgage from the land register, if you do not see to certain issues yourself, can often take months, and the most time is usually taken just to receive a mazal letter from the creditor, i.e. a document that confirms the payment of the obligation and at the same time certifies that the creditor agrees to be deleted from the land register of the property.

It is therefore good practice to “remind” the creditor as soon as the last incumbent installment of a home loan or other obligation that we had to pay has been paid.