Our criminal law firm brampton wants you to know that a pledge statement is a seller’s statement that a mortgage is being built on his immovable property. A pledge statement must be certified by a notary. It will be explained why you need it and how it works in practice.
When buying an apartment on a loan, you are mortgaging the apartment you are buying. As at that moment when you submit to the bank documentation for the approval of a loan, the apartment is not in your possession, the owner of the apartment must give a statement that he will build a mortgage over the apartment. In practice, a pledge statement is signed immediately prior to the certification of the contract of sale of real estate and is signed by the seller.
After the signing of a pledge statement and a contract for the sale of real estate, you, as a buyer, carry both documents at the bank. The bank submits a request for mortgage registration to the competent real estate cadastre. Upon filing a mortgage application, the bank pays money to the seller of the housing loan. However, it is necessary to pass a few days from the verification of the contract of sale of real estate until the day of payment of the money. You will find out from the bank what the deadline is and you will put it in the sales contract.
Although the seller signs the pledge statement, which is handed over to the bank and entered into the cadastre, it is handed over to the bank and the cadastre only after the signing of the contract of sale. So the seller has no reason to worry, because he signed the contract with the real estate, and the bank will pay him the money immediately after applying for mortgage registration in the cadastre. This will happen before the competent cadastral office issues a decision on mortgage registration.
It is for this reason that it is important that the seller is the owner of the apartment that is registered in the real estate cadastre.
How to enter a mortgage over a building under construction?
If you are buying an apartment under construction, you can not apply the same procedure because such an apartment is not registered in the Real Estate Cadastre. Here, a special mortgage registration procedure is applied by placing a mortgage on the land on which the building is built. Once the construction is completed, the apartment is registered in the Real Estate Cadastre and the mortgage is then entered into the apartment.
And what may be most interesting to you is that the mortgage ceases to be your listing from the real estate cadastre, when the entire loan amount is paid off.