Mortgage Waiver

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bitterlemons
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Joined: 10 Jan 2008 13:05

Mortgage Waiver

#1 Post by bitterlemons » 15 Mar 2009 15:39

Hello Nigel
A friend of ours in buying an apartment in Paphos. He is coming out in 2 weeks to make final payment and take over property. We have been answering some of his concerns and previously advised him to make sure there was no mortgage on the property. He now says his solicitor (who is independent) has advised him that there is a bank waiver on the mortgage. He is happy with this as his solicitor advised him all was OK to proceed. I have never heard of this before and am curious?
Any light you can shed on this would be appreciated.



Nigel Howarth
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Re: Mortgage Waiver

#2 Post by Nigel Howarth » 15 Mar 2009 17:10

Hi bitterlemons

What may have happened is that when your friend bought the property, the land on which it was built was mortgaged. Since that time, the developer has paid off the mortgage (or possibly transferred it another piece of land) and so the bank no longer has a claim on your friend's property.

The waiver from the bank confirms this.

It could also be the case that the developer paid off the mortgage on the land before your friend bought and the bank issued the waiver at that time. (I would call this a mortgage clearance certificate)

(The problem is that if a developer is building 20 properties on a piece of land with a single Title Deed and pays off 1/20 of the mortgage when he sells a property, the Land Registry has no way of telling which piece of the land is no longer mortgaged).

Cheers,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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bitterlemons
Posts: 19
Joined: 10 Jan 2008 13:05

Re: Mortgage Waiver

#3 Post by bitterlemons » 16 Mar 2009 15:59

Thanks Nigel - very helpful and a relief. I was curious as I like to try and understand these things, if possible!



Nigel Howarth
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Posts: 2196
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: Mortgage Waiver

#4 Post by Nigel Howarth » 16 Mar 2009 16:39

You're welcome
bitterlemons wrote:I like to try and understand these things, if possible!
The thing that often confuses me is that there can be a number of English translations of the Greek original.

E.g. What we call a 'Title Deed' is more correctly called a 'Certificate of Registration of Immovable Property'. But it doesn't roll off the tongue so easily :-)

Cheers,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news

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