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So that she definitely becomes yours

Svetlana Danilchenko

paid off the mortgage and removed the encumbrance on the apartment

In 2018, I paid off the mortgage and removed the encumbrance on the apartment. Now she is completely my property. I’ll tell you what an encumbrance is and how to remove it.

What is an encumbrance

An encumbrance is a restriction on the owner's rights to use and dispose of the apartment. Imagine shackles: you can move, but with great difficulty. An encumbrance may arise by force of law or by the terms of a contract. There are many types of encumbrances, for example: pledge, arrest, lease, trust management. Each type of encumbrance limits the rights of the owner in its own way.

The encumbrance can be voluntary or forced. An example of a voluntary encumbrance: a pledge, when the owner pledges property in order to borrow money. An example of forced: arrest of an apartment for debts.

In my case, the encumbrance was imposed due to a mortgage. This meant that I could live in the apartment, make repairs in it, bring friends to visit, but I could not rent out the apartment, remodel it, or sell it without the bank’s consent. I can register close relatives (parents, children, spouse and his parents) into the apartment, but I cannot register or register other people. If I plan to go traveling for several months, I must notify the bank about this: it was written so in the contract.

In fact, I did not feel the burden of the burden. Apparently because I didn't break them.

All these restrictions on the owner are lifted when he pays off the mortgage. If you made your final mortgage payment or closed your mortgage early, you cannot be denied the lien.

I took out a mortgage in October 2013 and closed it in June 2018. I repaid the loan amount and accrued interest for less than a month. I found out the exact amount in the bank’s call center: I asked to calculate the amount of full repayment of the mortgage for tomorrow.

But repaying the loan is half the battle. Now you need to remove the encumbrance from the apartment: this does not happen automatically.

How to remove the encumbrance

There are two ways to remove the encumbrance: in person at the MFC or on the Internet through the Rosreestr website. The second method is only suitable if you have a qualified electronic signature. I don’t have such a signature, so I submitted documents through the regular MFC.

The simplified process is:

1. We collect documents: we order a loan closure certificate and a mortgage note from the bank, at home we find a certificate of ownership of the apartment (if it was issued), a loan agreement and a passport.
2. We submit all this to the MFC.
3. We are waiting for notification of repayment of the encumbrance.
4. We check everything on the Rosreestr website.
5. Let's celebrate.

Now more details.

Collecting documents

After closing the mortgage, I called the bank and asked what documents were needed to remove the encumbrance. In my case, a certificate of closure of the loan and a repaid mortgage on the apartment were required.

The certificate was made right in front of me at the bank branch the next day after making the loan payment.

At the same time, I ordered a mortgage for the apartment from the bank. A mortgage is a document that pledges property. My apartment is pledged to the bank while I pay the mortgage. The mortgage was prepared in 10 working days - that is, two weeks. This happens differently in all banks, but the essence of the process is the same.

I use the services of Raiffeisenbank, where you can call the hotline and order all the certificates and mortgages without visiting the office. At Sberbank they told my friend that you can also order by phone, but it’s better to come to the mortgage center and write an application, because “it’s more reliable”

About a week and a half later, I received an SMS about the readiness of the mortgage. It is issued at a special mortgage branch of the bank using your passport. I picked it up at the same place where I signed the mortgage agreement.

I stood in line, approached a bank specialist, they prepared my documents and sent me to the cashier. They issued a mortgage for the apartment, combined with a loan agreement, and sent me back to the first specialist. He issued a notarized copy of the power of attorney, on the basis of which the bank employee signed the mortgage. A copy of the power of attorney confirms that the bank employee had the right to sign my documents. Receiving all documents from the bank is free.

How long does it take

I removed the burden in a little more than a month. On June 21, I paid off the mortgage, and on August 6, I received a notice of repayment of the encumbrance at the MFC. You can do it faster if you do everything online or sign up in advance.

How to make sure that there is no encumbrance on the apartment

To be sure that the encumbrance has been removed from the apartment, you can order an extract from the Unified State Register of Real Estate from the MFC for 400 rubles or check it on the Rosreestr website for free. I checked on the website.

You can do this a week after the MFC has confirmed the removal of the burden. In the same way, it is checked whether an encumbrance has been imposed on another apartment.

Encumbrances of various kinds limit the freedom of action of the owner. At the same time, they can be installed either by the owner himself or by an authorized body or court. Restrictions may arise due to various circumstances: when purchasing with a mortgage, drawing up a rental agreement, or arrest. Removal of encumbrances from an apartment, house, other living space, plot of land after payment of the mortgage, as well as shares in the right of ownership of these real estate objects, occurs depending on the method and nature of its imposition. Thus, a mortgage is based on the fact that the subject of the agreement is pledged to a banking institution until the borrower pays off the debt. Papers that confirm full repayment of the debt are presented to Rosreestr, MFC, after which the mortgage record is liquidated, the rightful owner can then dispose of his property without any problems. We will talk more about the procedure in the presented material.

Removal of encumbrance

From a share of an apartment

The legislator provided for ownership of real estate in the form of a share. A restriction in the form of alienation is imposed on a part belonging to a certain subject. The circumstances for this are exactly the same as during the registration of encumbrances on the entire residential area: arrest, pledge, rent. The process of removing the restriction on a share in an apartment is similar to the procedure for encumbering the entire residential premises. The sale of an apartment, part of which is pledged, can only be carried out with the approval of the lender.

After the mortgage

In most situations, restrictions are imposed when purchasing real estate on credit. When the debt is fully repaid, it is possible to legally formalize the removal of the encumbrance from the apartment. This problem is dealt with by the FSGR (Rosreestr) or the MFC. There you can also obtain the necessary sample application for lifting the restriction on housing.

If you do not have the time and energy to personally participate in this legal process, you have the opportunity to turn to specialists. They will perform all the necessary actions for a fee. It is not necessary to order full legal support; you can sign up for a consultation with a lawyer. In simple cases, one conversation with a specialist will be quite enough for a positive outcome of the case.

Procedure

Let's consider the procedure for removing mortgage encumbrances from an apartment in 2017. After repaying the loan, the borrower needs to perform a series of actions that complete the transaction with the financial institution. It is required to terminate the insurance contract for the living space and remove the encumbrance from it. If the employees of the creditor bank do not help you, you will have to go through the procedure yourself:

• obtain from the bank a certificate of full repayment of the debt, which should indicate that there are no claims against the borrower;
• take care of the note in the mortgage, take the loan agreement here (if necessary) and other missing documents on the mortgage;
• find out from the MFC or the territorial Rosreestr the exact list of papers required for submission, the procedure for going through the process of removing the encumbrance from the apartment and other points of interest;
• fill out the application form, pay the fee and prepare a set of documentation;
• contact the MFC or Rosreestr, submit papers to the registrar;
• wait for a decision to be made. Approximate time frame – three working days from the time of receipt of all documentation;
• receive an extract from the Unified State Register.

The main legal acts regulating the legal removal of mortgage restrictions on housing:

• Law “On Mortgage (Pledge of Real Estate)” dated July 16, 1998 No. 102-FZ;
• Law “On state registration of rights to real estate and transactions with it” dated July 21, 1997 N 122-FZ.

Documents

What documents are needed to remove the encumbrance on an apartment? After you have visited the registrar and clarified information about the upcoming procedure, it is advisable to order documentation from the bank, where they must issue you:

• A letter to the registering institution stating that the borrower has repaid the debt.
• Statutory papers.
• A document in the form of a mortgage on the completed settlement with the bank and an acceptance certificate.
• Power of attorney (under which the borrower can represent his interests in the registration authority).

List of documents for removing the encumbrance from an apartment for the borrower:

• statement;
• passports of all co-owners of property with encumbrances;
• a document establishing ownership of the living space.

The above-mentioned documents are submitted to the Rosreestr office. After studying the requirements, the encumbrance record is liquidated.

If desired, the property owner has the right to order a new document without an inscription on the restriction.

Statement

It should contain the following information:

• personal information of the applicant (passport details, address);
• name, details, legal address of the pledgee;
• information about the loan: description of the amount and term, terms of the agreement and termination date.
• indication of the absence of mutual obligations and debt.
• a request to lift the restriction to dispose of property on behalf of the owner.

An application to remove the encumbrance from an apartment is written in Rosreestr when submitting documents, a fee is paid, after which the interested person is given a receipt for acceptance of the papers. Within a couple of days, your application will be reviewed and a new document will be issued for the right to dispose of the apartment.

Deadlines

The date of removal of the restriction from the apartment corresponds to the moment the information was entered into the register. As a rule, the period for making an entry is 3 days, with a power of attorney on behalf of the borrower - 5 days from the time of registration of the application. At the MFC, the review period is extended by another 2 days. Since it takes about 2 more weeks (based on the rules in force in the institution) to request documents from the mortgagee, the total period can be increased to 3 weeks.

State duty

According to the law, before removing the mortgage restriction, a fee must be paid. It is small, and the registration authority will not accept the paper without the receipt provided. The owner finds out the amount of the amount and receives a receipt form from Rosreestr, then pays it at the post office or a branch of Sberbank of the Russian Federation. Next, he gives the registration institution a receipt for payment or a photocopy of it. In 2017, the amount of state duty to remove the encumbrance from an apartment is 350 rubles.

How can you find out if there is an encumbrance on an apartment?

In anticipation of purchasing an apartment, you need to independently find out its legal status and carefully consider the papers on the right to own the property. To obtain information about the presence of restrictions, you need to request an extract from the Unified State Register for living space. A convenient option when checking an encumbrance is to visit the Rosreestr office itself or use state portals - the official website of the FSGR and State Services. In the issued statement, if there are no restrictions on housing, you will see the phrase “not registered.” If there are encumbrances, the detailed circumstances of their occurrence are indicated.

To avoid problematic situations, before closing a mortgage loan, contact the bank and find out the procedure. If you want to pay off the balance of your debt, don't forget about the interest accrued for the period between the day the money is deposited into the account and the date it is recorded as the last payment on the loan. Controversial issues often arise on this matter, but the credit institution is right in this case. The required payment of the full amount of insurance may also be an obstacle. In a situation where a banking institution refuses to repay a mortgage debt, for example, illegally demanding to pay an additional amount or making claims without grounds, then the problem is resolved in court, a statement of claim is filed to remove the encumbrance from the apartment.

By contacting the lawyers of our site, you will get rid of existing obstacles without wasting effort and money. We will help you file a claim and collect the necessary papers to remove encumbrances from your apartment. Consultation can be obtained by phone or online on the website.

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The first question that arises for the happy owner of his own living space after paying off his mortgage loan.

According to standard mortgage lending conditions, the mortgaged apartment is the property of the borrower (mortgagor), but with limited rights to dispose of this property. The pledge as an encumbrance is registered in the Unified State Register of Rights (USRE). In fact, restrictions on the disposal of an apartment cease to apply after the mortgage is repaid, but in order to officially remove the encumbrance, it is necessary to make an appropriate entry in the Unified State Register and receive an extract from the register (you no longer need to obtain a new Certificate of Entitlement, it is not issued). Carrying out this procedure is the task of the borrower or the owner of the property if the borrower and the mortgagor are different persons.

Despite the fact that today the procedure for removing the encumbrance from an apartment that was the subject of collateral has been seriously simplified - this can be done through the local multifunctional center (MFC), some problems still arise. They are, as a rule, due to difficulties in resolving credit issues with the bank, since without official confirmation of the repayment of the mortgage, the entry on the mortgage of real estate will not be excluded from the Unified State Register.

General procedure for removing encumbrances

The procedure for removing the encumbrance from a mortgaged apartment (clearing the registration record) is determined by the Mortgage Law:

1. The encumbrance is lifted based on the following:

• joint application of the bank and the mortgagor (borrower);
• or statements from the mortgage holder;
• or an application from the mortgagor (borrower) accompanied by a mortgage note containing a note from its owner regarding the repayment of the obligation;
• or a court decision according to which the mortgage is terminated.

1. Repayment of a military mortgage record is carried out on the basis of an application from the government agency through which the program is being implemented.
2. If the mortgage arose in accordance with the Law on Shared Construction, an application from the developer is required, accompanied by permission to put the facility into operation.

In practice, given the massive scale of bank mortgage lending, in most cases, in order to remove the encumbrance, a joint application of the bank and the borrower (mortgagor) or an application of the latter with a note from the bank on the mortgage to repay the mortgage is provided. From the point of view of the law, any of these statements is sufficient to clear the entry in the Unified State Register. However, often the registration authority requires an expanded package of documents, the list of which must be clarified with the creditor bank, MFC or Rosreestr. In particular, they may be required to provide an identification document of the mortgagor, a loan agreement, a mortgage, an apartment purchase and sale agreement and a certificate of state registration of property.

Since cancellation of a record is considered a service, a state fee of 350 rubles is required (the amount may vary by law).

How to remove the encumbrance

As soon as you have paid off your mortgage in full, it is advisable to contact the bank to obtain a document confirming the repayment of the loan. At the same time, you will be able to get advice on the procedure for removing the encumbrance - as a rule, bank employees do not refuse this. Moreover, many banks actively help clients in resolving the issue of repaying the registration record - up to the preparation of all the necessary documents, sending it to Rosreestr and informing the borrower about the place and time of receiving an extract from the Unified State Register.

If the creditor bank does not provide assistance to borrowers in removing encumbrances from real estate, you will have to go through the procedure yourself:

1. Receive a certificate from the bank about full payment of the mortgage loan and the absence of claims, make a note on the mortgage, and if necessary, take here the loan agreement and other mortgage documents that are not in the borrower’s hands.
2. Check with the MFC or your territorial division of Rosreestr for the list of documents required for submission, the procedure for completing the procedure and other questions of interest.
3. Prepare an application for cancellation of the registration record, pay the state fee and create a package of documents.
4. Contacting the MFC is the easiest and most convenient option; if it is not available, contact the territorial unit (office, official representative) of Rosreestr.
5. Wait for a decision to be made. The standard period is 3 working days from the date of receipt of all documents.
6. Upon completion of the procedure, receive an extract from the Unified State Register.

What difficulties may arise: typical problems and solutions

Typically, difficulties in resolving the issue of removing the encumbrance arise due to some features of banking procedures and possible disputes regarding the full repayment of the mortgage. Banks are guided by their own regulations and often immediately tell the client that they will have to wait about a month before receiving all the documents required for submission to the Russian Register. As a rule, this period is used to verify the borrower’s fulfillment of all obligations, conduct reconciliations and resolve some organizational issues.

It is worth noting that when repaying a mortgage early, the termination period will be calculated on the date of the next periodic payment, and not on the day the funds are deposited into the borrower’s loan account. A prerequisite for correct accounting of early repayment is the borrower submitting an application for this 30 days before the planned full payment of the loan.

To avoid all sorts of problems, before closing your mortgage, visit the bank and personally clarify all the nuances of the procedure. If you intend to repay the balance of your debt ahead of schedule, be sure to take into account the interest that accrues for the period between the date the money is deposited into the account and the day it is recorded as the last payment on the loan. Disputes often arise about this, but the bank is right in this case. The need for a full insurance settlement may also become an obstacle.

If the bank refuses to terminate the mortgage, for example, illegally demanding additional amounts or making unfounded claims, the issue is resolved in court.

Is it really all over, and the heavy burden of repaying the loan no longer chafes your shoulders? This is great, but the state does not know about the repayment of the mortgage, and the right to the apartment is still encumbered by the mortgage. What to do after paying off the mortgage, how to remove the encumbrance - let's look at it step by step.

The concept of encumbrance of rights

An encumbrance on the ownership of real estate may arise for the owner due to legally significant events and acts. The imposed encumbrance does not allow the owner to fully dispose of the apartment. Information about the existence of an encumbrance is recorded in the Unified State Register. What causes the grounds for encumbrance of rights?

Mortgage

The most common encumbrance is a mortgage. As a rule, this is a pledge of real estate in order to obtain a mortgage loan for its acquisition (construction). When we don’t have enough funds of our own to buy an apartment, we borrow from the bank.

Insuring against the risks of loan non-repayment, the bank takes the apartment purchased by the borrower as collateral. And until the loan is repaid in full, the owner is partially limited in his rights to it. Its alienation, long-term lease, reconstruction cannot be carried out without the consent of the lender.

We will consider below how to remove the encumbrance from your home when paying off your mortgage.

Rent

The use of someone else's property for a fee is called renting. In relation to residential real estate, the word rental is used. A lease agreement can also become an encumbrance on the right. If it is concluded for a period of one year or more, then it is subject to mandatory state registration with the entry into the Unified State Register of Data on the encumbrance of the right in favor of the tenant.

Upon expiration of the lease term, the encumbrance does not automatically disappear. According to the Civil Code of the Russian Federation, a contract is considered extended for an indefinite period if the parties continue to fulfill their obligations after its termination. Therefore, to remove the encumbrance upon expiration of the lease term, the parties must submit an application to Rosreestr.

Arrest

The apartment is seized by decision of the judicial authorities. Until the arrest is lifted, the owner will not be able to make transactions to alienate the apartment (sell, donate, bequeath, exchange).

An arrest is imposed in the event of property disputes, overdue debts, etc. The interested party goes to court, and if a decision to arrest is made, a corresponding entry is made in the Unified State Register of Real Estate.

The cancellation of such an encumbrance record can only be lifted on the basis of a court decision.

Trust management

Housing can be transferred by the owner to a third party for trust management for various reasons arising from the owner.

Under a trust agreement, the owner's trustee manages his property, and the owner receives a certain portion of the profit from commercial income.

The trust management agreement is concluded for a long term and is an encumbrance of the ownership right with a registration entry being made in the Unified State Register of Real Estate. It can be removed upon termination of the trust management agreement.

Life annuity

Often single elderly citizens are ready to bequeath their apartment to strangers. In return, they take on the responsibility of maintaining the homeowner for the rest of their lives. Based on a lifetime annuity agreement, the apartment will be encumbered in favor of the person maintaining its owner. The encumbrance is removed after the death of the annuitant based on an application accompanied by the necessary documents.

Grounds for removing mortgage encumbrances

So, the apartment is pledged to the bank, how to remove the encumbrance? What are the grounds for paying off the mortgage registration record in the Unified State Register of Real Estate?

The encumbrance can be lifted if the following grounds exist:

• full repayment of the mortgage loan by the buyer;
• based on the application of the mortgagor, for example, when selling the collateral with the consent of the bank with subsequent repayment of the debt;
• physical loss of the collateral (burnt), and the balance of the loan debt was reimbursed to the bank by the insurance company;
• by court decision;
• on other grounds provided by law.

Let us consider in detail how the encumbrance is removed after the borrower has fully repaid the mortgage loan.

Procedure for removing the encumbrance when paying off a mortgage

How to remove the encumbrance from an apartment after paying off the mortgage? If the borrower has fully paid the bank under the mortgage agreement, this does not mean that the encumbrance on the apartment is automatically removed. The bank does not notify Rosreestr about the repayment of the loan, so the borrower himself has to perform a number of actions.

These actions are performed in the following order:

• clarification with the bank of the amount of the last loan payment (down to kopecks) and payment of the required amount;
• meeting with a loan officer to discuss the procedure for removing the encumbrance;
• obtaining from the bank the necessary documents to pay off the mortgage record;
• contacting the MFC with an application to make changes to the Unified State Register (sometimes together with a representative of the creditor);
• make sure that the encumbrance on the ownership of the apartment is removed.

Procedural Features

How does the bank remove the encumbrance from the apartment after repaying the mortgage? The procedure for removing the encumbrance differs little from bank to bank. It is quite standard (see procedure above). Differences may arise due to some nuances, such as:

• whether a mortgage was issued;
• will a bank employee submit documents to the MFC together with the borrower;
• Does the bank provide paid services for the removal of encumbrances?

This is shown in the following diagram.

VTB (VTB 24) can be found by calling the hotline.

We remove the encumbrance

If the procedure and timing of applying to the MFC are agreed upon between the bank and the borrower, then the actual procedure for submitting documents to remove the encumbrance from the apartment after full payment of the mortgage to the MFC follows.

Theoretically, documents for mortgage removal can be submitted to the local branch of Rosreestr, but in practice in 2018 everyone is sent to the MFC.

Reducing the number of contacts between Rosreestr specialists and applicants is aimed at reducing the number of employees.

What you will need when submitting documents

According to the changes made to the Mortgage Law, the set of documents for removing a mortgage depends on whether the loan was drawn up when the loan was issued.

If it exists, then the following documents will be required:

• a common statement from the borrower and the bank holding the mortgage;
• the mortgage note itself or the account statement if an electronic mortgage note was issued.

• borrower's application;
• a paper mortgage note, with a note from the bank indicating full fulfillment of obligations to repay the loan.

If the borrower did not issue a mortgage to the bank, you will need:

• general statement of the borrower and the lending bank;
• or:
• application only from the creditor bank.

Also, when submitting documents to the MFC, the applicant(s) must have:

• identity document and SNILS;
• a power of attorney issued in the prescribed manner to a bank employee with the right to submit documents to the MFC;
• a power of attorney issued by the bank to the borrower for submitting an application with documents to the MFC (if a bank representative is not present when submitting documents);
• a statement from the federal executive body if the apartment was purchased by a military member participating in the NIS.

Other documents from the parties to pay off the mortgage record are not required by law.

Government services to help us

Is it possible to remove the encumbrance from an apartment through government services? Yes, an application for repayment of a mortgage record can be submitted through the public services service on the Rosreestr portal. But only holders of an electronic signature can do this.

On the Rosreestr website, in the electronic services section, select “Submit an application for state registration of rights”, then “Registration of encumbrances of rights” and finally, “Repayment of a mortgage registration record”.

For advanced users it will take no more than 15 minutes. You need to have on hand:

• your passport;
• SNILS;
• purchase and sale agreement with a note on mortgage registration;
• scans of documents (mortgage note with bank mark) in pdf format;
• power of attorney (if the application is submitted by an authorized person);
• file with the applicant's electronic signature.

State duty

There is no state fee for repaying the mortgage record in the Unified State Register of Real Estate. There is an explanatory letter on this subject from the Ministry of Finance of the Russian Federation dated December 21, 2007 N 03-05-06-03/96.

Paragraph 12 of Article 53 of the Law on State Registration No. 218-FZ emphasizes that the repayment of the mortgage record and the entry into the Unified State Register of data on the termination of the mortgage are not state registration of rights, that is, there is no reason to collect a state fee.

Also, the state duty for removing a mortgage is not provided for by the Tax Code.

Application processing time

An application for repayment of a mortgage record in the Unified State Register is considered within 3 working days from the date of receipt of the application by Rosreestr. Exactly to Rosreestr! But documents are submitted through the MFC. Therefore, you should add one day for the transfer of documents from the MFC to the territorial department of Rosreestr.

The period is slightly longer (5 working days) in the case of purchasing an apartment using borrowed funds to participate in the shared construction of an apartment building.

What do we get as a result?

The result of the legal examination of documents submitted to Rosreestr may be:

• repayment of the mortgage registration record, removal of encumbrances from the apartment, cancellation of the mortgage or return it to the borrower (if there is his request);
• suspension of actions to remove encumbrances. In this case, the applicant will be notified of the reasons for the suspension by telephone and by registered mail. The reasons for the suspension must be eliminated within 3 months.

These reasons are usually trivial and most often easily corrected. These are: errors, clerical errors, misprints in documents, or there is no mark on the mortgage regarding the fulfillment of financial obligations secured by the mortgage, etc.

How to find out about the removal of the encumbrance

After Rosreestr performs actions to remove the encumbrance, the owner of the property is not issued any document in confirmation. How can you make sure that the apartment is “clean”?

It's pretty simple. 5-6 days after submitting the application, we go to the official website of Rosreestr.

In the online reference information about real estate, we specify the cadastral number of the apartment or its address. In a few seconds, information about the desired apartment will appear. Almost at the very bottom of the table there are the words “Restrictions and Encumbrances”. We open it and see “Not registered,” which means the encumbrance has been lifted.

Such reference information is publicly available. And any buyer can protect himself in this sense by simply checking the information about the presence of encumbrances.

If you want to receive an official document confirming complete ownership, you should order an extract from the Unified State Register of Real Estate. They are different. You will need a Statement of Basic Characteristics and Registered Rights. You can order it through the Rosreestr website or at the MFC. You can receive it in the form of an electronic document (cost in 2018 - 250 rubles), or in paper form (cost in 2018 - 400 rubles). After this, the owner will be calm about the completeness of his rights to the apartment.

The purpose of the article was to answer the question: “Have you paid off your mortgage, how can you remove the encumbrance?” All aspects and nuances of this topic were disclosed as fully as possible in the article and updated as of June 2018.