Seller’s mortgage

If the seller has a mortgage on the apartment, it will usually benefit the mortgage bank. He must provide data on the amount of the mortgage and how he will remove the mortgage.

The wording of the ‘tabu’ lists details regarding the mortgage (see the chapter on the ‘tabu’ and the mortgage), such as the date on which the mortgage was registered, as well as the amount of the original mortgage or alternatively ‘unlimited in amount’.

It is very important to attach to the contract a letter of intent from the same bank addressed to the seller or buyer or to any other person because the bank undertakes to remove its mortgage if it is paid the amount that will be listed in the letter.
Lawyers tend to settle for a printout from the bank with the amount of the mortgage. This practice is problematic since there is no obligation to remove the mortgage in exchange for receiving one amount or another.
Sometimes the ‘balance to be removed is missing, and the seller may have additional debts to the bank that do not appear in the output.

However, in the same output ‘balance for removal, there are advantages that do not exist in the letter of intent. In the output, it can be seen whether the seller is repaying the mortgage in order or there are arrears.
Thus, in the same letter, you can see the division between the various components of the mortgage, the component of the principal, the interest and mortgage repayments that are paid each period, etc.
This information is important to overcome issues if the seller violates the contract and does not pay off the mortgage on time.

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