Loan for an apartment
Home equity loans that we carry out in the area of our operations is a financial product entirely finalized with non-bank capital. Receiving this kind of loan and the process of analyzing the client as a potential borrower differs from banking analysis and is based mainly on the client’s financial capabilities, on his needs, the purpose of the loan and the plan for repayment of the mortgage contract.
We distinguish two types of apartments:
- cooperative ownership right to the premises
- ownership of premises with a partial share of land under the building
The first type of property is determined by the ownership of the flat without an assigned share of the land under the building. The owner is most often a member of a housing cooperative. The second type of property assumes, apart from the ownership of the flat, also the participation in the ground under the building and in this situation, the most often managing body, eg rental fees, is the Housing Community. The documentation that is required for these two types of property rights is slightly different:
- For a co-operative flat, they are a certificate of the right to a cooperative right to the flat and a certificate of the rental account balance with information about possible debt and the account number of the cooperative
- For an apartment with full ownership of the land a certificate is required for the balance of rental fees also with information on debt, if it exists and the account number of the housing community
Considering the lack of documentation on income or the lack of verification of our clients in BIK, BIG and KRD bank databases, an important element for us when analyzing the lender, which affects the granting of loans are documents related to property rights as well as the certificates from the housing cooperative described above. photos of the apartment inside showing all the rooms. There is no need to make an appraisal report and the value of the property, which is one of the most important elements when determining the loan amount, will be determined using the photographic documentation. Another important document is a document confirming the ownership of the flat. Most often these are:
- contract of purchase – sale in the form of a notarial deed
- donation contract also as a notarial deed
- the court’s decision to drop or divide the estate
- a certificate of allocation of a flat as a property right
There are also other documents on the basis of which the client has become the rightful owner, but we have only exchanged the ones that appear most often in practice. Two of the above documents require confirmation from the Tax Office of exemption or payment of the tax, and so from the contract of donation it will be a tax on the donation, but the requirement applies only to donations that took place after January 1, 2007. The second document is the legally valid order of the court of inheritance and here too the information from the tax on inheritance tax is required. In this case, there is no limit date and this form of ownership is always required.
It is important for the legal provisions when analyzing and preparing the loan for the customer to determine the appropriate number of the land and mortgage register, based on which we analyze the entries in the book and determine what documentation is required for the case. There is no need to extract from the Land and Mortgage Registry the entire copy, since for a few years every person knowing the real estate register number can check all the current subscriptions for a given flat in the electronic Land Registry.
The last document on the basis of which we can efficiently prepare a loan agreement and also a notary who is preparing a part in the form of a notarial deed is the ID card of the apartment owners and other persons who join the loan agreement.
Charging real estate on the side of bank loans, forced mortgages or other non-bank loans is not a problem, we do not reject such matters, but it is required to document all entries appearing in the land and mortgage register on the basis of which the customer usually repays the loan.
Bailiff and a non-bank loan is an issue that is very often incorrectly qualified by customers. The execution entry unfortunately prevents any credit traffic to the bank, but for us it is not a big problem. The most important aspect with this type of burden is the condition that the total amount of enforcement be repaid under the loan and the basis for it is up to date, not older than 30 days a certificate from the bailiff carrying out the execution. Due to some provisions in civil law, specifically, par. 930 pts 3 cpc, unfortunately, it is not possible to establish a mortgage on such a flat, because the act assumes that “charging the mortgage after its attachment is invalid” which in practice means that you can not make any entry on a mortgage for a loan or a loan. A solution in this type of cases is another form of loan agreement, which is not subject to this provision and is allowed by the same article, but saved in item 1 of the Code of Civil Procedure.