Liens and mortgages: what they mean when you buy

A property can carry rights or obligations of other people, which the buyer takes over together with the ownership. They appear in the land book, in the part called encumbrances. Here is how to read them.

The most common encumbrances

• Mortgage: a guarantee in favour of a bank or creditor, usually for a loan.
• Seizure: a measure that makes the property unavailable, for example to recover a debt.
• Ban on sale: prevents selling the property without the consent of the beneficiary.
• Easement: someone else's right to use part of the property, for example a passage.
• Usufruct or right of residence: a person's right to use the property.

A mortgage is not always a red flag

The seller can have a loan on the apartment and still sell, if the mortgage is deleted at the time of the sale, usually from the money received. What matters is how this step is organized: who pays the bank, when the mortgage is deleted and what guarantees you have until then.

What to do if you find an encumbrance

• Ask the seller for the documents that explain it: the loan agreement, the bank letter, the decision.
• Ask whether and when it will be lifted, and have it written in the preliminary contract.
• Talk to the notary about arranging the payment so the encumbrance is deleted at signing.
• If you do not get clear answers, walk away or renegotiate the terms.

What the land book does not show

Not every problem appears there. Unnoted disputes, debts to the owners association or unauthorized works can exist without any mention in the register. That is why a complete check looks at other sources too, not just the extract.

The information is general and does not replace the advice of a notary or lawyer. A fairlyhome report helps you see the encumbrances and the other checks in one document, before you sign.