A file full of documents

As is the case in many other things, when it comes to the transfer of real estate in the end it's the extra effort you give. The new owner, for instance, would naturally greatly appreciate getting a file filled with related documents. This would include, in particular:

  • operating manuals for appliances
  • warranty vouchers
  • blueprints and floor plans of the building
  • listing of craftsmen and component suppliers
  • insurance policies
  • keys for all doors, for ancillary rooms, the garage, etc.
  • for condominiums: bylaws, usage and administrative notices from the condominium association, minutes of the meetings where important decisions were taken

And the mortgage?

Dealing with the mortgage and debt notes is generally a matter for the banks involved. Variable-rate mortgages can be very uncomplicated in the case of a change of ownership; depending on the bank, there is a notice period of from only three to six months.

If, on the other hand, the real estate is financed with a fixed-rate mortgage or with another type of mortgage with a longer term, matters can become more complicated. The seller often has de facto only the choice to pay his bank a prepayment penalty (for cancelling the contract outside of the standard terms) or to convince the new owner to take over the existing financing.

The mortgage - a matter for the seller

In particular, if the existing mortgage was arranged at favourable conditions, it's certainly in the best interest of the new owner to continue with the existing mortgage. The question of the mortgage, though, is first and foremost a problem for the seller. Any concessions on the part of the buyer are naturally voluntary and must be considered when negotiating the purchase price.