The issue of a mortgage on a property must be recorded in the land register. However, after paying off the mortgage, such information must be removed. This is done by certifying a special document, i.e. a letter of mortgage. What exactly does it consist in? Who can issue it?
What is a mortgage letter?
A Mazal letter is to confirm that a liability secured by a mortgage on a given real estate has been paid off. Thanks to that, the entry on that subject can be removed from the mortgage book. The owner of the property then has full rights to manage it again.
A Letter of Credit may be issued not only by a bank, although such a situation occurs definitely most often. There is also an option to create such a document by:
- the company providing the mortgage loan,
- the natural person in whose favour the mortgage is established,
- State Treasury.
Mazal letter allows you to certify that a person has paid off the loan. It is not possible to remove an entry from the land register only on the basis of a verbal assurance of the property owner. It is necessary to present evidence. The Land and Mortgage Register is kept by the Land and Mortgage Register Department, but at present it is not possible for them to check on their own whether a person has actually repaid the loan.
The mortgage expires as soon as the borrower has paid off his obligation. However, it is in his interest to remove the entry about it from the land register, which does not happen automatically. For this reason, it is necessary to provide the mazal letter to the appropriate entity that deals with updating the information related to the property.
You can find more information about the mazal letter here: https://finanse.rankomat.pl/poradniki/list-mazalny/.
What does the Mazal letter contain?
The Mazal letter must be prepared in an appropriate manner, in accordance with the current legislation. It is an official document prepared by an authorized person. It should be issued in a traditional paper form. Currently it is not possible to issue a letter online.
A Mazal letter should contain information about the property, its land and mortgage register, owner’s details and details of the repaid debt. The type of mortgage and a special statement about its cancellation are also important.
How to obtain a Letter of Credit?
In order to obtain a letter of mazal, it turns out to be necessary to submit an appropriate application. Such a document is issued only to the property owner. Therefore, if you have registered a mortgage on your apartment, house or plot of land, it is you who is the addressee of the letter of mortgage. This is not related to who exactly is paying the obligation.
Before taking out any loan, however, it is a good idea to analyze all available offers. This is a great way to see which one is the most advantageous in terms of interest rates. Currently you can do this without leaving home, using online comparison services, such as finanse.rankomat.pl. It is an easy way to compare at least several offers available on the market.