What is the process to cancel a mortgage?

The process of canceling a mortgage on a property is simple but requires some steps. If the pending debt has been already cleared, it is fully recommended to proceed with the inscription of the mortgage’s cancellation at the Land Registry in order to avoid future problems. This would be the steps to be followed:


1.- The Bank

The first step is to approach the bank and ask them for the total amount pending to cancel the mortgage. They will include the main capital pending, the interest up to the cancellation date and, depending on the mortgage, a cancellation commission. Once that amount is paid, the bank will issue a certificate of “zero debt” stating that the amount pending has been fully paid.

2.– The Notary

The second step would be going to the Notary with the certificate issued by the bank and the documentation of the mortgage and the property to sign a public deed of cancellation of the mortgage. The Notary officials can prepare that deed.

3.– The Tax

With the copy of the cancellation deed, the Impuesto de Actos Juridicos Documentados has to be cleared. Since 2001, the mortgage cancellation deeds are exempted on paying that tax but a certificate issued by the Tax Office stating that exemption is needed to proceed with the Land Registry cancellation.

4.– The Land Registry

Once the tax has been cleared and with all the documentation produced on the previous steps, it is the time to approach the Land Registry to request the inscription of the mortgage’s cancellation. This would be the last step of the process.


If the property has been sold and the buyer is not interested on maintaining the mortgage on the property, that mortgage has to be cancelled prior to the signature of the selling deed. That is usually done on the same day, same Notary and just before the signature of the purchase deed. The bank will have to prepare a certificate with the amount pending on the date of the signature and the buyer will bring a check for that amount that will be given directly to the bank representative that will sign the cancellation deed. The Land Registry cancellation will be done prior to the inscription of the purchase by the new owner.