Once the terms subscribed in the mortgage deed of a property have been fulfilled, by the debtor before his creditor, the respective cancellation or lifting of the mortgage is carried out.
Regardless of the type of mortgage subscribed, among which we find, among others, the open mortgage of the undetermined amount or the so-called closed or first-degree mortgage, once the loan payment has been canceled, it is necessary to proceed to lift the lien that weighs on the property, because in the end, the asset served as collateral.
What is the mortgage?
Let us remember that article 2432 of the Colombian Civil Code defines the mortgage as " a pledge right constituted on real estate that does not cease to remain in the power of the debtor ."
Therefore, a mortgage is a contract in which the debtor and the creditor agree between both that the former leaves as collateral property of his property without transferring his domain or ownership in exchange for a certain sum of money that is given in the capacity of loan.
When does the mortgage end?
At the moment that the payment of the credit debt is canceled in the determined and subscribed period, the mortgage is lifted before a notary's office, since for this purpose the real guarantee had to be made through a public deed.
What should we do then?
Go, preferably, to the notary where they signed the mortgage and deliver the following documents that will serve to clean up the property:
Citizenship certificates of the debtor and the creditor, if they are natural persons.
In case of being a legal person, certificate of existence and legal representation, plus the Nit of the entity.
If acting as attorney-in-fact, an authenticated letter with the respective power to cancel the mortgage.
Certificate of tradition and freedom of the mortgaged property no longer than thirty (30) days.
Copy of the deed where the mortgage was constituted.
Property Tax canceled for the last five (5) years.
Paz y Salvo by valuation (if it exists).
Peace of mind of administration if the property is in a horizontal property regime.
In the respective notary, then, the public deed of lifting the mortgage is made and the signature between the debtor and the creditor is carried out.
Is it necessary to register the survey in the Registry of Public Instruments?
Yes, you must go to the Public Instruments Registry Office with the respective mortgage lifting deed, to be registered in the traditional certificate the due annotation that no real right no longer exists or weighs on it or, at least, the cancellation of the mortgage due to the due fulfillment of the contracted obligation.
Then, you must wait a few days and request a certificate of tradition to verify that the respective annotation of mortgage cancellation has been made.
It is important to note here that one or more mortgages can be constituted on the same property, at the same time, and by one or all of the property's owners. That is, if one of them owns fifty percent (50%) of a property, for example, he can only mortgage his part and have two mortgages registered on the same property.
What are the notarial expenses?
For the constitution of mortgage as the cancellation of the same, it is necessary to raise it to a public deed before a notary's office. The property must be free of any limitation or affectation such as a usufruct, a previous non-canceled mortgage, have an affectation to a family home or a trust, among others. Also, be at peace and safe in taxes and administrations, if it is the case.
What is the fee for the lifting or cancellation of the mortgage?
In that order of ideas, as the act exceeds $ 179,600, the rate of 3 × 1,000 plus VAT must be paid, according to the amount of the constitution or cancellation mortgage, as well as the charity tax that is one percent (1%) on its value, and zero point five percent (0.5%) for registration and annotation fees at the Public Instruments Registry Office, see notary fees.
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