The land register for building loans

Every year thousands of households fulfill their dream of owning a home. The whole thing is realized as a house purchase or purchase of a condominium. Many families also simply build new ones. In addition to own funds, the building loan is usually used here.

At the latest in connection with the application for building finance, the client comes across the land register and department I-III. What exactly is marked here? Who keeps the land register?And why are departments I-III so important in the land register?

The land register – more than a simple register

The land register - more than a simple register

Forerunners of today’s land register can already be found in the Middle Ages, some documents date from even earlier times. The idea behind this is to precisely grasp real estate in its extent and the ownership structure.

In the end, the land register is a directory to:

  • Ownership
  • Loads and restrictions as well
  • Mortgages,

that affect a property. To make the land register clearly structured and legible, the copy has been established in the departments I-III. Each of the individual departments has its own purpose.

What is in the land register?

What is in the land register?

The main task of the land register is to record and archive all relevant data on a property. In this context, several issues must be recorded that are assigned to the individual departments.

Department I records all information on the ownership structure. Here, among other things, the name of the owner, the reason for registration and the number of the property are noted.

Section II shows all the burdens and restrictions (except the mortgages) with which the property in question is provided. These can include:

  • Housing and usage rights
  • Usufructuary rights
  • Sales rights or
  • Leasehold

his. In addition to noting the charges, deletions are also noted in the land registers.

The department relevant for the building loan is III. Information on mortgages – i.e. mortgages or land charges – is recorded here. By the way, the ranking is of crucial importance, since subordinate rights can sometimes not be satisfied through enforcement.

Land register entry and mortgage lending

The departments I-III in their entirety make up the land register. Department III is really important for the building loan.

Since banks generally have an interest in first-class collateral for mortgage lending, prime mortgages are required. In the course of the loan application, banks therefore require inspection of the land registers. And financing only comes about if everything fits.

You only have to pay back the loan

Selling a mortgaged flat is not too complicated, you only have to pay back your current loan.

The easiest way is when the buyer wants to buy an apartment for cash. Then he simply transfers the amount corresponding to the level of debt to the creditor’s bank account, and the remainder of the receivable is received by the seller.

It should be remembered that in some banks there is a commission for early repayment of the loan, which may amount to e.g. one percent of the repaid amount.

Bank approval required

Bank approval required

Some complications can arise if the buyer wants to take out a loan. A new bank can be registered in the mortgage only after deleting the old one, which in turn will agree to delete it after receiving the money due.

It is, therefore, necessary to describe in detail in the notarial deed how the transaction will be carried out so that the interests of both banks are secured.

If the amount of mortgage debt is lower than the transaction value, then the rest of the money goes to the seller’s account.

However, it is worth knowing that a mortgaged apartment cannot be sold without the opinion and consent of the bank that is included in the mortgage, and – if the buyer intends to take out a loan – the other bank. So first you need to settle these formalities, and sometimes it can take up to two weeks.

Own contribution problem


Sometimes complications can arise if … the buyer has his own contribution. Imagine the following situation: Fine Bank has 100,000 USD cash and buys an apartment from Nowak for 400 thousand USD – missing 300,000 USD will want to finance with a mortgage.

But Nowak’s apartment is mortgaged with a debt balance of 350,000. USD. Fine Bank demands a certificate on the current debt balance, which is normal, and it may take, for example, two weeks to issue it.

The condition for running the loan is that the amount of debt should not be higher than the amount of the loan, so first you must (from the cash held by Fine Bank) pay off part of the loan. In most banks, notary confirmation of the transfer of the missing 50,000 would suffice, but there are institutions on the market that will demand another certificate of the debt balance and we have a two-week delay.

The case may also be delayed due to the dates of booking operations. There are banks that book their full loan repayment only on a specific day of the month (usually on the installment payment date). If we are late with this operation for a few days, we will be almost a month late.

Such situations, however, occur quite rarely, most often it is possible to arrange everything efficiently. Some of those who bought a flat with a foreign currency loan have a problem.

First of all, exchange rates change every day. The debt balance certificate usually includes the loan amount in currency and its equivalent in USD, converted at current exchange rates as at the date of issue of the document. If after a few weeks the loan is disbursed, it may turn out that the amount is not enough to repay the existing loan.

Sometimes the course bothers


Due to the weakening of the zloty, it may be that, given the current exchange rates, we owe the bank much more than when we took out the loan. For example, if someone borrowed 400,000 two years ago USD in Swiss francs, today it owes the bank over 600 thousand. USD. Such a person has a debt level of 50%. higher than the value of the property, which significantly hinders its sale. Practically makes it impossible.

To get rid of such an apartment you would have to add 200,000 USD. Unfortunately, such people are indeed imprisoned, but this is not due to the mortgage itself, but the unfavorable turn of events in the currency market and falling real estate prices.

Loans without BIG – where to look for offers?

What is BIG?

What is BIG?

BIG stands for Economic Information Bureau – it is an institution that collects data on debtors and makes them available at the request of authorized entities. The register receives information about enterprises with arrears to their contractors and natural persons (consumers) who are behind with payments, e.g. due to utility bills.

Only entities that operate on a basis may use BIG names Act of 9 April 2010 on sharing economic information and exchanging economic data. Banks and cash loan companies mainly use these four:

  • ERIF Economic Information Bureau,
  • BIG InfoMonitor,
  • National Debt Register BIG,
  • National Bureau of Economic Information.

The above BIGs keep registers of debtors independently of each other. Therefore, if you have a backlog of payments, you can reach one of them, all of them, or none. It depends on your creditor, who may or may not add you to the database. If he chooses to do so, certain conditions must be met:

  • Your debt must amount to at least USD 200,
  • the repayment delay should be a minimum of 60 days,
  • written information about enrollment in BIG should be provided to you a month earlier.

So before you start looking for a loan without a BIG, check to see if it appears at all.

The lender will check your credit standing while verifying the application. For this purpose, it may download a report about you not only from the BIG registers, but also from the BIK (Credit Information Bureau). In the latter case, your reliability in the repayment of credit obligations towards banks and loan institutions will be assessed.

Is a loan possible without BIG?

Is a loan possible without BIG?

If you are interested in loans without BIG, then you will find them primarily among the cash products described in the Act on consumer credit of May 12, 2011. It is it that regulates the granting of loans for any purpose up to USD 255,450, where the lender can be both a bank, as well as a company offering e.g. payday loans online.

The aforementioned Act imposes on all lenders obligations related to granting loans, which includes, among others assessment of consumer creditworthiness. Art. 9, which directly indicates the possibility of using various databases for this purpose.

Fortunately, the legislator gives financial institutions full discretion as to the choice of registers. And this means good news for you – a loan without BIG is possible because you only need to find an institution that does not use the register in which your debt has been entered.

For example, if the arrears appear in the BIG InfoMonitor database, you have the chance to receive financing from a company that checks only KRD.

How to apply for a loan without BIG online?

How to apply for a loan without BIG online?

In practice, people who appear in debtors’ registers have the greatest chance of obtaining cash on the non-banking market. Loan companies are simply much more lenient about assessing their clients’ creditworthiness than banks.

What’s more, many of them operate online it is advertised that it offers loans without BIG via the Internet. Pay attention to them if you urgently need cash with a negative entry in your debt register.

If you already find the right institution, it will take you literally a moment to apply for a loan, because to do this you need to do the following:

  1. Register on the loan service by providing data such as: name, PESEL, number and series of ID card, place of residence, bank account number, telephone number and e-mail address.
  2. Select the amount of the liability and the date of its repayment – in the case of payday loans it will be one-off and specified in days, while in installment loans it will be calculated in months.
  3. Accept the terms of financing (note the APRC, i.e. the total cost of the loan).
  4. Pass identity verification, e.g. by transferring 1 penny to the indicated account.

The above procedure takes several minutes, including waiting for the credit decision. If your application is approved, you can count on transferring funds on the same day.

Who are the loans without BIG for?

Who are the loans without BIG for?

People who have debt entries in such registers are interested in loans without checking the BIG databases. If the lender does not download reports on the client from such institutions, he will not find out about the debt, which increases the chance for a positive assessment of creditworthiness and for receiving financing.

It is worth remembering, however, that having an unpaid liability may make repayment of the loan difficult. The debt collection procedure usually does not end with placing the debt in the BIG register – the creditor may at any time refer the case to court and then enforce the repayment with the help of a bailiff.

Additional debt in the form of a loan obligation can therefore further complicate the situation. So before you reach for a loan without a BIG, analyze your finances, and it’s best to try to settle the arrears before submitting an application for additional cash.

Where to look for loan offers without BIG?

Where to look for loan offers without BIG?

If you want to use a loan without BIG online, you can choose a quick payday loan with a repayment deadline of up to 30 days or an installment loan that can be repaid in installments even for 24 months or more. There are many institutions offering such products and most of them check various databases while verifying applications.

Fortunately, most companies report which registers they use. You can find out from their websites, e.g. in the regulations or the FAQ section. In this way you can find an institution that does not check the Economic Information Bureau in which your debt appears.

As you can see, there is no company offering loans without BIG – only some of them check only selected databases, which gives certain opportunities to people who appear only in one of the registers. It is also worth remembering that currently 90% of loan institutions check BIK, i.e. the Credit Information Bureau.

When looking for a loan online, you may come across ads from private lenders who offer quick financing without checking BIK, BIG or any other database. They are usually natural persons who borrow their own capital without unnecessary formalities, but expect very high interest rates in return. Such expensive loans under a promissory note are very difficult to pay back, which is why debtors should avoid them.

Is it worth taking a loan without BIG?

Is it worth taking a loan without BIG?

The biggest advantage of commitments made without checking the databases is that non-bank companies also offer loans for indebted people. In the case of online payday loans, obtaining financing is very simple and does not require many formalities – all you need is an ID card, your own bank account and income enabling repayment of the liability.

It is worth remembering, however, that people who have a debt entered in the BIG register should not, in principle, incur further liabilities, because they increase their debt. So you should always be reasonable and use convenient financial products after a thorough analysis of your financial situation.