MORTGAGE: The debt is granted in respect of a mortgage from the bank registered in the register of real estate.
According to Italian law the bank is creditor or has a mortgage guarantee, but it doesn’t mean that it can be considered the owner of the property. Any hypothesis which sees the bank as owner of property is contrary to the Italian banking laws and civil laws.
LOAN EXTINCTION: It’s normal practice that the buyer, a few days before the date of the deed, is informed about the amount of the outstanding debt and the exact amount and the amount of the balance due for the purchase of the property.
In fact the buyer, on the day of the deed, will be presented with two covered checks of Italian bank: one that extinguishes the residual debt of the mortgage and the other extinguishes the debt to the owner for the purchase of the property.
NOTARY PROCEDURE TO PROTECT THE BUYER: All civil laws in notary procedure require the presence during the act of sale of bank officials with powers delegated by the bank will proceed to the extinction of the mortgage upon receipt of the first covered bank check and the cancellation of mortgages.
The execution of the payment of the outstanding debt and of the cancellation in front of a notary public officer, extinguishes all the liabilities of the bank and allows the transferability of ownership as no longer bound to the mortgage.
NOTARY ACT OF SALE: After the payment of all amounts the property is free from liability and mortgage, and it will be sold to the buyer prior certified covered bank check as balance of the share purchase.