Selling a flat with a mortgage in Poland – how to do it step by step

You still have a loan and want to sell your flat – because the family is growing, you are changing city or you simply want to buy something newer? It is a very common situation and there is nothing risky about it if you put the actions in the right order. Below we describe what such a transaction looks like from the seller's perspective and what we pay attention to when we handle it at TM Invest.

A mortgage is the bank's security, not a ban on selling

A loan does not take away your right of ownership. In the land and mortgage register (księga wieczysta) you are still entered as the owner, and the bank appears in section IV as the mortgage creditor. A mortgage "follows" the property – which is why the buyer must be sure that the entry will be deleted after the price is paid. So the whole procedure comes down to one thing: part of the price goes directly to your bank, and the bank undertakes to delete the mortgage.

The law sets no minimum period after which a flat with a loan may be sold. Two other dates do matter, however – we write about them below in the part on costs and taxes.

Before you post the listing: three things to settle with the bank

You will save the most stress if you talk to the bank before publishing the offer. Ask about:

• the current outstanding balance – that is, how much principal and interest is left to repay; this amount determines how much will really "stay in your pocket",
• the early repayment rules – whether the agreement provides for compensation and in what amount,
• the document for the buyer and the notary – banks call it different things (a balance certificate, a promise to delete the mortgage, consent to release the property from the encumbrance). It contains the amount to be repaid, the account number and an undertaking to issue consent to delete the entry after repayment.

Such a document usually has a short validity period and may be paid for, so it is worth applying for it only when you know the buyer and the planned date of the agreement. At the valuation stage the balance information is enough.

How the sale proceeds – stage by stage

The order of steps is very similar to an ordinary transaction. The difference lies mainly in the split of payments.

1. Setting the price. Compare the prices of similar flats in the area and make sure that the price leaves a surplus after covering the loan balance and the costs of sale.
2. The offer and viewings. In conversation with the buyer say straight away that the flat is encumbered with a mortgage and how it will be repaid. Transparency builds trust.
3. Preliminary agreement. Preferably in the form of a notarial deed – it gives both parties a stronger claim to conclude the final agreement. In the agreement state the method of payment: what amount goes to the bank's account and what to yours.
4. The buyer's financing. If the purchaser takes a loan, their bank will survey the property and will need documents from you. Allow a few weeks for this.
5. Documents for the deed. The notary will give you the full list. They are usually: an ID card, the land and mortgage register number, the basis of acquisition, a certificate from the bank, a certificate that no one is registered as resident, confirmation of no arrears in fees to the owners' association or housing cooperative, and the energy performance certificate, which the seller gives to the buyer.
6. The notarial deed (akt notarialny). The deed will include a clause that part of the price will be transferred to your bank's account and the rest to your account. You do not have to repay anything yourself – the buyer or their bank does it.
7. Deleting the mortgage. After repayment the bank issues consent to deletion (the so-called list mazalny). The application to the land registry court is often filed by the notary together with the deed; the court fee for deleting a mortgage is PLN 100.

The buyer is also taking a loan? That is normal

Do not be discouraged if it turns out that the purchaser is financing the purchase with a loan. In practice it is the most common scenario. The buyer's bank transfers the funds directly to your bank (for repayment) and to your account (the surplus). Only the time lengthens – which is why in the preliminary agreement it is worth leaving a realistic margin for the credit decision and agreeing what happens if the bank refuses financing.

Costs that sellers often forget

Compensation for early repayment

The Mortgage Credit Act allows a bank to charge compensation only if the agreement provides for it. With a variable interest rate it can be charged only for repayment within the first 36 months of the agreement, and it cannot exceed 3% of the amount repaid or the interest due for a year from the repayment. With a periodically fixed rate, compensation during the fixed-rate period cannot be higher than the bank's direct costs connected with the repayment. You can check the details in your agreement.

Income tax

If you sell before five years have passed, counting from the end of the year in which you bought the flat, the income (the sale price minus documented acquisition costs and expenditure) is subject to 19% tax and settled on form PIT-39. You are released from the tax by the so-called housing relief – when you spend the proceeds on your own housing purposes within three years of the end of the year of sale. Your own housing purpose includes, among other things, buying another flat and repaying a loan taken earlier to buy the unit you are selling.

Smaller expenses

Certificates from the bank, the owners' association or the office, a possible energy certificate and the agent's fee. The notary's fee and the PCC tax (civil law transactions tax) on the secondary market are customarily paid by the buyer, but that is a matter of agreement between the parties.

Selling to buy a new flat?

Repaying the loan after the sale frees up your borrowing capacity and gives you a down payment for the next purchase. If you are thinking about a flat from a developer, see our guide how to buy a new flat while selling the old one and the current investments in Warsaw and Wroclaw.

Read also:

• Tax on selling a flat within 5 years
• Housing relief – how to avoid tax on a sale
• Selling a flat step by step 2026
• Documents for selling a flat – list

Frequently asked questions

Summary

Selling a flat with a loan differs from an ordinary sale mainly in that in the notarial deed you split the price between the bank and yourself. What is key is knowing the balance, a bank document prepared on time, a well-written preliminary agreement and awareness of the tax costs. If you plan to sell and buy a new flat, ask our expert – we will help value the flat, and our credit expert will compare financing offers for the next purchase.