How To Discharge Prewar Mortgage Form Land And Mortgage Register

In the Polish Land and Mortgage Register it is still possible to find prewar mortgages securing loans. A mortgage creditors in such cases usually have already passed away and it is almost not possible to determine their heirs. However, it is still possible for the land’s owner to get rid off such mortgage.

Court Deposit

On the first place, it is necessary to apply to the relevant court for consent to pay the amount of the loan to the court deposit. According to Article 99 sec. 1 of Land Register and Mortgage Act, if paying debt to a creditor encounters difficulties, mortgage expire if an owner of a land pay the debt to the court deposit. If mortgage is in favor of a creditor not known to the owner, he is not alive and it is not possible to identify his heirs, it obviously constitutes a difficulty in paying the debt. Therefore, it is possible, referring to the above provision, to pay the relevant amount to the court deposit and submit the relevant application to the court. The court, most likely after publishing in a Poland-wide newspaper an announcement for possible heirs, will accept the application.

Good news for the real estate’s owner is that prewar currency (even if the mortgage was determined in foreign currency such as USD), are subject to conversion into the present currency. Taking into consideration all redenominations which took place after the war, there are really small amounts to be paid to the court deposit. Sometimes they are ridiculous amounts such as PLN 0.01 or even less.

Application For Mortgage Discharge

After paying the converted loan to the court deposit, the next step is to apply to the court for the mortgage discharge, also on the basis of Article 99 sec. 1 of Land Register and Mortgage Act. Such application should be accepted by the court without any problems.