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- 05/05/2021
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Mortgage and property charge cancellation in Spain – A comprehensive, detailed, practical and up-to-date guide
Many homeowners in Spain assume that once their mortgage is fully repaid, it disappears automatically from the Land Registry. That’s a common misconception. Even after the final payment, the mortgage entry remains until it is officially cancelled. This guide explains the process, legal framework, deadlines, and costs involved.
Why mortgage cancellation matters
As long as the mortgage remains registered, the property is legally considered encumbered. This can complicate a sale, refinancing, or licence application. Official cancellation ensures the property is fully free of charges.
Legal framework and deadlines
Mortgage cancellation is governed by Articles 128–131 of the Spanish Mortgage Law (Ley Hipotecaria). The mortgage remains registered until the creditor (the bank) authorises its removal by notarial deed. There is no automatic deletion after 21 years.
According to Article 1964 of the Civil Code, a mortgage claim expires after 20 years. This means the bank can no longer enforce it, but the record does not disappear automatically. Notarial action is still required.
Steps to cancel a mortgage
- 1. Certificate of payment: Request written proof from the bank confirming the loan has been fully paid (carta de pago).
- 2. Notarial deed: The notary issues a Deed of mortgage cancellation.
- 3. Land Registry entry: Submit the deed to the Registro de la Propiedad for removal.
- 4. Costs: Typically between €100 and €300, depending on notary and registry fees.
What happens after 20 or 21 years?
After 20 years, the bank’s mortgage right expires. The owner may request cancellation by expiration if no outstanding debt remains. The registry usually asks for a bank certificate. Automatic free removal is not foreseen by law.
Recommendation
It is advisable to request cancellation immediately after repayment. Delays can cause administrative difficulties, especially if the bank has merged or changed its name.
Conclusion
Mortgage cancellation in Spain is not automatic. It requires a notarial deed and a Land Registry update. Acting promptly prevents issues during future property transactions or inheritance processes.
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