Selling a Flat with a Mortgage or Easement in Poland — What You Need to Know

Want to sell a flat in Poland, but the bank holds a hipoteka (a mortgage — a charge registered against the property securing a loan)? Or is the property burdened with a służebność (an easement — another person's legal right to use it)? This guide explains how these transactions work, what to watch out for, and what it means for the buyer. Bear in mind: the sale is possible, but it needs careful planning and full disclosure to the buyer.

This material is for general information only and is not legal advice. Every transaction involving encumbrances depends on the contract terms, the state of the księga wieczysta (the land and mortgage register — Poland's public property register) and negotiations between the parties. Always consult a notariusz (a civil-law notary — a public official who authenticates the sale contract; this role is broader than a UK notary public) before signing anything, as they will confirm the transaction is safe.

Selling with a mortgage — possible, but you need a bank release letter

What is a hipoteka?

A hipoteka is security for a mortgage loan. If you borrowed money to buy the flat, the bank registered a charge against it in the księga wieczysta — that's its guarantee that you'll repay the debt.

Can I sell a flat that still has a mortgage on it?

Yes, but conditions apply. A mortgage doesn't prevent a sale. However:

1. The mortgage must be repaid using the buyer's money — at the moment the sale contract is signed, the funds go directly to the bank (or the notary holds them in an escrow account until the mortgage is repaid).

2. The bank must agree — formally, for the mortgage to be removed from the register, the bank must issue a release letter (promesa banku) confirming that the debt will be settled.

Procedure for selling with a mortgage

Scenario 1: Mortgage repaid from the buyer's funds (typical)

1. The sale contract includes a clause under which the buyer pays the mortgage amount directly to the bank (or the notary places the funds in escrow).
2. The notary collects the full purchase price from the buyer, then: - Transfers the mortgage balance to the bank - Passes the remainder to you
3. The bank removes the mortgage from the register (once repayment is confirmed)
4. The buyer becomes the owner free of that charge

Scenario 2: You repay the mortgage before the sale (less common)

1. You repay the whole mortgage from your own funds (e.g. a loan from family)
2. You apply to the bank for the mortgage to be removed from the register
3. The bank removes the charge (this takes 2–4 weeks)
4. Only then do you sell — with the property already unencumbered

Where does the risk lie?

⚠️ Key point: if the sale proceeds aren't enough to repay the mortgage in full, the deal doesn't close. The bank can even block the ownership transfer in the register until the mortgage is repaid.

Example: - Mortgage balance: PLN 150,000 - Sale price: PLN 140,000 - Shortfall: PLN 10,000 - Solution: you have to top up the PLN 10,000 shortfall from your own funds

Tip: before agreeing terms with the buyer, contact the bank and find out exactly how much you need to repay (capital plus interest up to the completion date).

Two ways to handle the payout

Option 1: Notary escrow (safest)

The notary holds the funds in an escrow account until: - The mortgage is repaid - The mortgage is removed from the register - The buyer is registered as the new owner

Pros: safe for both parties Cons: the funds are tied up for several weeks

Option 2: Payment straight to the bank

The funds go directly from the notary to the bank's account. Once the mortgage is repaid, the bank issues a confirmation and the notary proceeds with registering the transfer.

Pros: faster Cons: requires trust and careful coordination between the parties

Personal easements — what they mean for a sale

What is a służebność?

A służebność is another person's legal right to use your property. The most common examples:

• A neighbour's right of way across your land — the neighbour has a right to cross it
• Dożywocie (a life interest / right of residence) — a third party has the right to live in the property for the rest of their life
• A right to draw water — another owner has the right to draw water from your well

An easement passes to the buyer — you cannot simply remove it.

How does an easement affect a sale?

1. Registered in the land register — anyone checking the online register (e-KW) will see it
2. Reduces the property's value — the buyer will pay less (or may not be interested at all)
3. The right transfers to the buyer — the buyer must accept this restriction
4. It doesn't lapse automatically (unless the easement was granted for a fixed term)

In practice: the life-interest (dożywocie) problem

The most problematic case is usually a dożywocie — for example, if a father sold the house to a neighbour but retained the right to live there for life, the property becomes practically unsellable in the meantime. A buyer only acquires rights to the land — they cannot rebuild, demolish, or let it out as a home. This significantly reduces its value.

⚠️ Tip: always check the e-KW for easements, especially a dożywocie. If one is registered, you'll need a difficult conversation with the seller about whether the restriction can be removed (a Polish court can, in some circumstances, vary or extinguish a right that has become purposeless).

Land easements — pass automatically to the buyer

A służebność gruntowa (a land/predial easement) is a right to use land belonging to another owner (e.g. a right of way). It transfers to the buyer without any special formality — but it still reduces the property's value if it restricts how the land can be used.

Example: "The neighbour has a right of way across the plot" — that's a land easement. The buyer has to accept it as part of the deal.

Claims registered in Section III of the land register — what to do about them

Section III of the księga wieczysta records various entries — mortgages, pledges, and enforcement seizures by a bailiff (komornik). If there are entries relating to a seizure by a bailiff (e.g. on behalf of the seller's creditor), the matter becomes considerably more complicated.

A bailiff's seizure means the property is effectively frozen — you cannot sell it until the seizure is removed.

Procedure:

1. Check the e-KW for any seizures
2. Contact the seller's creditor to see whether a settlement is possible
3. If not — you'll need to wait (or the seller must pay off the debt)
4. Only once the seizure is removed can the sale go ahead

⚠️ In practice: if a seizure is in place, it's usually better to postpone the transaction until it's lifted. It changes too many of the deal's conditions.

Checklist — what to check before selling an encumbered property

• ☐ e-KW — are there any mortgages, pledges, seizures, or easements?
• ☐ Bank — exactly how much needs to be repaid (capital plus interest up to the completion date), and are there any early-repayment charges?
• ☐ Bank release letter (promesa) — does the bank confirm it will remove the mortgage after the sale?
• ☐ Notary — have you discussed the escrow procedure or the payment arrangement?
• ☐ Buyer — do they know about the encumbrances? Will they accept them?
• ☐ Preliminary agreement (umowa przedwstępna) — does it set out the terms for repaying the mortgage?
• ☐ Sale contract — does it spell out the details of the payout to the bank?

Frequently asked questions

Do Polish banks always consent to the sale of an encumbered property? Technically, yes — but the bank wants a guarantee that the mortgage will be repaid, and that repayment must come from the buyer's funds. The bank won't allow the sale to proceed if it can't see where the repayment money is coming from.

What if the buyer wants to take out their own new mortgage — does that change the procedure? Yes. The procedure then involves: (1) repaying your mortgage from the buyer's funds, and (2) the buyer drawing down their new mortgage. This has to be carefully coordinated with both banks. An experienced notary will have handled this kind of transaction before.

If an easement makes the sale difficult, can I get rid of it? In some cases, yes. A Polish court can vary or extinguish an easement if it has become purposeless (for example, if the person entitled to it has died). But this is a court procedure — it takes time and costs money.

Can I sell a flat with a neighbour's life interest (dożywocie) registered against it — will that be difficult? Very difficult. A dożywocie significantly reduces the property's value. A buyer will want to pay considerably less — or may not be interested at all. The only real solution would be to obtain the agreement of the person entitled to the life interest to give it up — but that rarely happens.

Does the mortgage have to be removed from the register before the buyer is registered as owner? Almost always, yes. The notarial procedure is designed to ensure the mortgage is repaid and removed from the register at the point the buyer is registered. It's rare for a mortgage to remain in place with the new owner taking on the debt — that's a complex arrangement requiring agreement from both parties and the bank.

This material is for general information only. Transactions involving encumbrances are complex. Always consult a notary and a qualified Polish lawyer to make sure the procedure is safe for both parties.

Last verified: 27 June 2026.