2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Mortgage on a land plot helps many people to acquire a territory for themselves where they can build. Taking into account the current economic situation, the constant decline in production levels, as well as inflation, we can say that the mortgage includes a large number of advantages.
Functions of land mortgage lending
If a person draws up a mortgage, then he is guaranteed to receive real satisfaction of all his requirements. A mortgage on a land plot has the main function, which is to fulfill all the established points under the contract. Borrowers must accurately and unquestioningly fulfill all obligations under each item of the signed documentation. Regulations are governed by applicable law.
From the ancient Greek language, the word "mortgage" is translated as "pledge". Land is a reliable object of collateral if a person uses it rationally for a long time.time, it will not wear out. Mortgage lending agreements are common today. In modern society, these are demanded collateral and legal relations. This fact can be explained by the fact that the main feature is the value and attractiveness of obtaining real estate.
How are mortgage agreements concluded?
Today, mortgage loans can be issued not only for the purchase of an apartment or house, but also for obtaining a land plot. It is worth highlighting the main features of such an offer - a complex and time-consuming registration procedure. But the earth is not subject to wear and tear, and also does not age with time. Land plots will not lose their original value.
In order for a mortgage to be issued, all documents must be filled out correctly. In order for such contracts to give rise to collateral legal relations, all documentation must be in the established legislative forms. If we take into account many other legal relations, then in this case the forms established by law may not be observed. As a result, the concluded contract will be terminated.
Mortgage for a land plot is issued exclusively in full compliance with applicable law and in a legal form. In this case, the subject of the contract becomes a mortgage or real estate, so it is necessary to carry out the identification process. The event starts withparticular type of property. When a land plot is drawn up, it is necessary to clarify its location or link it to a specific area.
What plots can be bought with mortgage lending?
The main object of mortgage lending is a land plot, but certain requirements should be taken into account. It is forbidden to buy plots that are in shared ownership. Also, land that belongs to state bodies or municipal services is not subject to lending. A mortgage for the purchase of a land plot cannot be issued in the event of the withdrawal of land from state contracts. Before taking out a mortgage, you need to consult with qualified professionals who have the appropriate education and work experience. They know all the established laws and other mortgage lending requirements.
What if there are buildings on the lot?
When a mortgage is issued for the purchase of a land plot, special attention is paid to the presence of buildings or other structures. If the site has buildings on its territory, then the mortgage applies to all buildings. It is possible to single out the principle of indivisibility of plots and all located buildings - this is obtaining permission from the state and the existence of legislative acts. All key points must be spelled out and indicated in loan agreements. It will be necessary to pay special attention to such a factor: all buildings must be introducedfor further operation and are issued in private ownership. The order of registration and use of buildings must be regulated by the current legislation.
Peculiarities of obtaining a mortgage on a land plot in a banking institution
Today there are a large number of features that relate to land lending. The following provisions can be distinguished:
- Borrowers have every right to engage in the construction of structures on the sites. In this case, there is no need to notify the bank that issued the mortgage. As an exception, it is worth highlighting the cases that were provided for in the concluded agreement.
- When a mortgage is issued on a land plot, banks receive the right to all buildings that were erected during the term of the loan agreement.
- The territory can be taken into mortgage lending, when in the future it will be used for gardening and the construction of residential buildings and summer cottages.
- The mortgage lending agreement comes into force after state registration. This procedure is carried out exclusively on the land.
Terms of land registration
The current legislation of the Russian Federation in January 2013 introduced a new law number 302, which has amended provisions for regulating the process of registration of various agreements. The subject of the agreement is the land plot. All adopted changes relate to state registrationmortgage lending of land. It says about the deadlines for the registration procedure.
A new wording of article number 13 has come into effect, which may regulate the timing of this procedure. No more than one month must elapse from the date of application. Also, within these terms, it is necessary to provide other accompanying documents that will be required for state registration of land. But in some cases, the deadlines for submitting documentation can be regulated by the current legislation of the Russian Federation. Registration of a mortgage on a land plot is carried out within fifteen days from the date of submission of all documents.
Evaluation of the land plot
The agreement between the lender and the borrower allows you to determine the collateral value of the land. The collateral price is the total value of the property, which later appears in the loan agreements. Thus, it is possible to guarantee the reimbursement of funds from a banking institution. This may be required in the event that all obligations related to repayment of the loan were not fully met.
Evaluation and mortgage for a land plot includes the following characteristics, as well as sections:
- Determining the purpose and category of land.
- Total area of the territory.
- Collection of documents that grant the right to further ownership of land. At the same time, it is necessarybe sure to indicate the exact period of validity of the contract.
What points should be considered during the appraisal of land?
During the assessment, a land plot mortgage agreement is concluded, where special attention is paid to such factors that characterize all the advantages and disadvantages of the location of the object. The following requirements can be distinguished:
- The exact location of a particular site.
- Full description and administrative division of towns and cities.
- Clarification of the name of administrative regions.
- Full and detailed description of the prestige of the place where the land is located.
- Is it far from the city center.
- Access to public transport.
Specialists undertake to assess the market value of the plot being developed, as well as to make a future forecast of possible changes during the loan term.
Procedure for getting a mortgage loan
During the process of obtaining a loan for land, the borrower may not provide collateral to the bank. Mortgage of land plots implies a detailed and most thorough study of the requirements that may apply to a particular plot.
After the bank approves the object of lending, experts recommend conducting an appraisal of the cost and signing mortgage insurance contracts. The borrower has the full right to refuse certain types of insurance, as well as the signaturecomplex contracts. An important criterion that may affect the provision of a loan by a bank is the availability of infrastructure near the land. Also taken into account is the supply of electricity, gas, water and the presence of a transport interchange. When issuing a mortgage, the total size of the land plot and its possible distance from the city center play a special role. Land plots that cannot be provided for lending:
- Land used for industrial and military purposes.
- Lands owned by multiple owners.
- Plots of municipal purpose.
- Territories allocated for nature reserves.
- National park area.
Where is the best place to buy land with a mortgage?
Today there are a large number of institutions and banks that offer their customers the opportunity to use the mortgage lending service. Banks do not issue loans for land plots that are in shared or joint ownership. Mortgage lending can only be issued for the object that belongs directly to the borrower.
If the territory is owned by legal entities or individuals, the bank has every right to require consent from each individual owner. It is in this case that a mortgage on a land plot can be issued and executed. Sberbank today is engaged in lending and providing a mortgage loan for its customers. But during processingof this procedure, each person should study as accurately as possible all the subtleties and features of a mortgage on land. In this case, you can count on the legal aspects and guarantees of the execution of the agreement.
Subtleties of registration of a pledge agreement
Contracts that are concluded during mortgage lending must be executed exclusively in writing. The registration process is carried out in a certain order, which was established by the current legislation. If the contract contains such important points as the subject of the mortgage and its final assessment, then the mortgage of the land plots will be issued. Land law implies a set of all necessary legal norms that can regulate the relationship of land use and protection.
Correct and accurate land valuation can only be carried out by professional appraisers. A prerequisite is the presence of a monetary value, which cannot be lower than the value of the cadastre.
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