The cancellation of a mortgage usually requires a notarial procedure.

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The mortgage is a guarantee in favor of a creditor. The creditor – generally a financial institution – can foreclose when the lender defaults on the obligation to pay the loan. Once the obligation is fulfilled, the debtor has the right to cancel the guarantee, that is, to cancel the mortgage. How do you cancel a mortgage when the creditor is a bank.

The cancellation of a mortgage is an operation that usually requires a notarial procedure.

There are several ways:

  • The most general way is to ask the bank for cancellation. The bank usually charges a commission and management and registration expenses. From the notary Bosch & Bages of Barcelona We can manage to contact the bank and grant the cancellation deed. This procedure is cheaper than if you decide to go to the bank and ask the bank to do it for you. At the end of this process, the notary authorizes the deed signed by the bank where it gives a letter of payment of the loan and raises the mortgage on the property. Once the deed is signed, it is settled as exempt from the Tax on Patrimonial Transmissions and Documented Legal Acts and is registered in the Property Registry, completing the process with the liquidation of the provision of funds to the client. In this case, it can be stated that the cancellation requires a notarial procedure.
  • Exceptionally, the public deed is not necessary since Article 82 of the Mortgage Law when “the period indicated in the applicable civil legislation for the prescription of derivative actions” of the mortgage guarantee has elapsed. The term is 20 years. How is the term counted? The starting day is “the day on which the service whose fulfillment is guaranteed should have been fully satisfied according to the Registry.” In other words, the amortization date foreseen in the contract. Are there any exceptions to this count? Yes, provided that within the following year it does not appear from the Registry that they have been renewed, the prescription interrupted or the mortgage executed. In this case, it is not necessary that the notarial deed of mortgage cancellation be granted since it is considered that for the years that have elapsed it is not necessary.
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The cancellation of a mortgage is an operation that usually requires a notarial procedure.

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