Paying off a mortgage completely does not automatically make the burden of the Property Registry disappear. The loan is settled financially, but the owner must then carry out the registration cancellation if they want the property to be listed without that mortgage.
The difference can go unnoticed for years because having finished paying prevents the bank from claiming new installments.
The problem usually arises when the owner wants to sell the property, request another loan secured against it, or prove that it is completely free of charges.
First step: request the zero debt certificate
The entity must issue a zero debt certificate free of charge that certifies that the loan is fully paid.
The bank cannot charge for issuing it. It also cannot require the client to provide a simple note from the Registry as a prerequisite for providing the certificate.
Second step: go to the notary
With that document, the public deed of cancellation must be formalized.
The owner has the freedom to choose the notary. The entity must appear to grant the cancellation and cannot charge the client for the signature of its representative or for their travel.
Third step: settle AJD, even if there is no payment required
The mortgage cancellation requires presenting the corresponding document of the Tax on Documented Legal Acts to the regional tax administration.
The operation is exempt from paying the tax, but the presentation procedure remains necessary.
Fourth step: go to the Registry
With the cancellation deed and the tax documentation, the removal of the charge from the Property Registry is finally requested.
There are indeed registration fees, the amount of which depends on the mortgage and the applicable regulations.
It can be done on one's own
It is not mandatory to hire a management company.
The owner can request the certificate, go to the notary, present the tax, and personally register the cancellation.
If they delegate the entire process to the bank or a management company, they will have to pay the corresponding expenses and fees, but the entity must inform them in advance of the amount.
Since 2021, there is also the possibility of carrying out part of the procedure electronically through the Citizen Notarial Portal.