Mortgages and attachments: what is cancelled and what remains
“If I buy at auction, do I also take on the debts of whoever lived there?”
It is everyone’s first question, and as far as mortgages and attachments are concerned the answer is no. But the full answer is more useful, because something really does remain, and it is not what people fear.
What is cancelled
Art. 586 of the Code of Civil Procedure is explicit. With the transfer decree the judge orders the cancellation of the registrations of attachments and of mortgages, including those registered after the attachment.
You do not have to ask for it, you do not have to pay for it separately, you do not have to negotiate with the bank that held the mortgage. The decree itself orders it, and the cancellation is then carried out at the land registers.
This is the heart of how a court auction works, and the reason it exists: the asset is sold free of those encumbrances, otherwise nobody would buy it and the creditors would recover nothing.
So: the bank’s mortgage, the attachment of the creditor who started the procedure, the attachments of other creditors who came later — they all go.
What is not cancelled
This is the part worth reading twice, because it is where money is lost.
Easements. A right of way in favour of the neighbouring land, a right of view, a pipe crossing the land: these are not the owner’s debts, they are features of the asset. They remain, and they remain even if you have not seen them. The appraisal report describes them: that is one of the reasons to read it to the end.
Planning, landscape and heritage restrictions. If the property is in a protected area, or is subject to protection, no decree cancels that restriction. It may limit what you can do with it and how much it is worth.
Building irregularities. Unauthorised work is not regularised by the transfer. The property comes as it is, and if there is an irregularity, you pay for the regularisation — where it is possible.
Condominium arrears. This one surprises almost everyone. It is not a mortgage and it is not an attachment: it is an obligation that the law attaches to the property. Whoever takes over is jointly liable for the contributions for the current year and the previous one. If the debtor had not paid for years, your share can be worth thousands of euros.
Enforceable leases. If there is a tenant with a lease registered before the registration of the attachment, that lease in principle follows you.
The difference, in one line
What is cancelled is a person’s debt secured on the asset. What remains is a feature of the asset or an obligation that the law ties to the property.
It is a distinction that almost always holds and helps you read the appraisal report from the right angle: when you find a formality, ask yourself whether it is someone’s debt or a property of the thing itself.
An exception worth knowing
Art. 586 preserves mortgage registrations relating to obligations assumed by the successful bidder under art. 508.
This is the case, not frequent but real, in which the successful bidder chooses to take over a debt secured by a mortgage instead of paying the full price. It does not happen by mistake: it is an explicit choice, authorised by the judge. But it explains why the wording of the code does not say “all” mortgages.
How to check before bidding
The appraisal report contains the list of prejudicial formalities: mortgages, attachments, registrations. It is the section people usually skip because it looks technical, and yet it is the one that tells you whether there are surprises.
What you need to look for is not the mortgages — those will go. It is the other items: easements, restrictions, problematic deeds of provenance, registered contracts.
If the appraisal report is years old, it may not show later formalities. An up-to-date search before bidding costs little and settles the doubt.
Frequently asked questions
Do I have to pay off the bank’s mortgage? No. The transfer decree orders its cancellation.
What if the mortgage is worth more than the price I pay? Nothing changes for you. The proceeds of the sale are distributed among the creditors according to the rules of the procedure: whatever is not enough remains a problem between them and the debtor, not yours.
Do the former owner’s tax collection notices follow me? Personal debts are not transferred with the property. If they are secured by a registered mortgage, the mortgage is cancelled by the decree.
Who pays for the cancellation? Cancellation costs are normally borne by the successful bidder and are among the charges to be paid with the balance. The delegate calculates them.
Do I really owe the condominium arrears? You are jointly liable for the contributions for the current year and the previous one. It is an item to ask the building manager about before bidding, not after.
How long does it take for the cancellations to be carried out? The decree orders them immediately; carrying them out at the registers takes a few weeks or months of processing. In the meantime you are already the owner.
This guide describes the general framework and is not a substitute for examining the documents of the individual procedure. What emerges from the appraisal report, the notice of sale and the transfer decree always prevails.