Selling an apartment with a mortgage: how does it work?

How does selling a mortgaged apartment work?

If you bought the apartment with a loan, the bank’s mortgage is registered in the Land Register (kinnistusraamat). At the sale, the outstanding loan is paid from the sale price, the bank consents to the mortgage being deleted, and the apartment passes to the new owner free of encumbrances.

The notary runs the transaction: the buyer’s money goes into the notary’s deposit account, the bank’s claim is paid from there, and the remaining amount is transferred to the seller.

Steps

• ask your bank for the outstanding balance and the terms for early repayment
• check your loan agreement for an early-repayment fee
• agree the price and the transaction date with the buyer
• the notary requests the balance from the bank and arranges for the mortgage to be deleted
• after the deal, the difference between the sale price and the loan balance is paid into your account

What to keep in mind

If the sale price is lower than the outstanding loan, the difference has to be covered from other funds — otherwise the bank won’t release the mortgage. Work this out before you accept an offer.

When you sell to Kinn.ee, there’s no waiting for a buyer’s loan decision: the funds are in place, the loan balance is paid off at the notary and the rest of the money reaches your account within 7 days. We pay the notary and transaction fees.

How the sale works

1. 1Enter the apartment address and a few basic details — it takes a couple of minutes.
2. 2You get our offer within 24 hours. The offer doesn’t commit you to anything.
3. 3If the offer suits you, we sign the deal at a notary and the money reaches your account within 7 days.

Frequently asked questions