What is a parent mortgage?
Solving the problem took some time. Apparently, when the bank was acquired by another financial entity, some procedures were incomplete. Luckily, those involved – the construction company, the bank and the notary – did everything possible to expedite the lifting of the parent mortgage and Don Rodrigo was able to sell the house.
What happened? It could happend to you?
What is a parent mortgage?
The mortgage is an operation as old as money. You already know: who lends, asks for a guarantee. It can be a real estate, a car or a real estate project.
Most builders use loans from banks. Construction is very expensive and sales do not always provide sufficient resources at the time they are required. A loan guarantees cash flow during construction. The bank is delivering resources for work progress. Now, how does the bank guarantee that it will recover the money invested? Ask for guarantees. One of them is a parent mortgage on the project, that is, on the lot and future assets.
The parent mortgage expressions who is the builder, who is the entity that receives the mortgage as collateral and the amount of the business. Banks and builders are well aware of the procedures to register the parent mortgage with SUNARP. It is a relatively quick process.
What is the other effect of the parent mortgage? If the builder fails, the bank could continue the business.
Had you thought about it?
That a great benefit for buyers.
Your home, still undeveloped, already has a debt with the bank because it has been offered as collateral by the builder. Guarantee that ends when the obligation has been canceled.
When should the parent mortgage be lifted?
The bank raises the parent mortgage according to the value of the debt that has already been paid. For example, if you lent a billion to make a hundred departments and have been paid 400 million, you will raise the mortgage of 40.
The lifting of the parent mortgage is one more process within the work schedule for the builder. One very difficult, delicate and expensive. Why?
Before the office of public records, the builder must transfer the responsibility for the possession of the good to each buyer. Will gradually raising the parent mortgage to the real estate:
- Delivered with signed minutes to the buyers;
- Those who have been verified 100% of the payment, with mortgage or cash credit;
- To those who have independence
- Those included in the minutes (signed by the bank and the builder and sent to the notary).
It is normal for the builder to present to the notary several minutes to lift the main mortgage of the same project. Legalization has a cost! Imagine the value of all the scriptures! In addition, not all properties are completed at the same time and not all clients make their last payments in the same month.
And most importantly: the bank has to document that in effect the constructor’s obligation has ended and the guarantee can be lifted.
Only then will the parent mortgage of 100% of the built properties be lifted, the independence will be legalized and the title will be formed in the name of the new owners.
The mortgage protects you
So raising the parent mortgage takes time. While it is pending, Sunarp will not admit the entry of any other deed of sale or new mortgage.
Is that your case? Do you need to raise a parent mortgage to proceed with a mortgage loan transfer?
You will have to wait a bit. What is happening is a rule that actually protects you. Can you imagine that anyone could negotiate your property without your authorization? Therefore, without authorization from the owners – the builder and the bank, at this time – the SUNARP will not proceed to accept any new business.
You could ask the builder about the progress of this process. If you believe the time will be excessive, negotiate some benefit.
In any case, you already know: check the text of the minutes and writings you sign. If the parent mortgage appears, you must be pending and request the removal.