How is a mortgage registered?
First of all: You cannot register the land charge yourself, you have to hire a notary to do it. If you finance your property yourself – i.e. do not get a loan – you do not need to register a mortgage.
You, your bank and a notary are involved in the registration. Before you take the following steps, you should make sure that the property does not already have a mortgage. An old land charge must be deleted by the seller.
These steps are necessary to register a mortgage:
notice of conveyance: After the purchase contract has been signed, the notary issues a notice of conveyance. This makes you the future owner of the property — the seller cannot sell the property to anyone else.
Power of Attorney by the seller: At this point, you are not officially the owner of the property. You can therefore not register a mortgage. For this reason, the seller issues you a so-called power of attorney. This power of attorney entitles you to commission a notary to register the land charge.
Form for ordering the land charge from the bank to the notary: Your bank will only pay out the loan to you once the mortgage has been registered. For this purpose, the bank will issue you with a land charge order form, which you must forward to the notary.
Certification of the land charge by the notary: At an appointment with the notary you will be given a mortgage deed displayed.
Sending the deed to the land registry by the notary: Your notary will forward the deed and the power of attorney to the land registry and apply for the entry of the land charge.
The bank receives a copy of the certificate: Your bank, from which you get the loan, receives a copy of the deed and an excerpt from the land register from the notary. Now the bank has all the collateral it needs and will pay the loan to you.
