A mortgage on a land plot helps many people to acquire a territory for themselves where they can engage in construction. If we take 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 mortgage lending land
If a person draws up a mortgage, then he is guaranteed to receive real satisfaction of all his requirements. Mortgage to the land has the main function, which is to fulfill all the established points under the contract. Borrowers must accurately and implicitly fulfill all obligations for each item of signed documentation. Provisions are governed by applicable law.
From the ancient Greek language, the word "mortgage" is translated as "collateral." Land is a reliable object of collateral, if a person will use it rationally for a long time, then he will not wear out. Mortgage 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 a proposal - a complex and time-consuming design process. But the earth is not subject to wear and tear, and also does not age with time. Land will not lose their original value.
In order for the mortgage to be issued, you must correctly fill out all the documents. In order for such agreements to generate collateral legal relations, all documentation must be concluded in established legislative forms. If you take into account many other legal relations, then in this case the forms established by law may not be observed. In the end, the concluded contract will be terminated.
A mortgage on a land plot is executed exclusively in full compliance with applicable law and in legal form. In this case, the subject of the contract is a mortgage or real estate, so it is necessary to carry out the identification process. The event begins with an indication of a specific type of property. When a land plot is drawn up, it is necessary to clarify its location or to tie it to a specific area.
What plots can be bought with a mortgage?
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 is owned by state bodies or municipal services is not subject to lending. A mortgage for the purchase of a land plot cannot be executed in case of land withdrawal from state contracts. Before taking a mortgage, it is necessary to consult qualified specialists who have the appropriate education and work experience. They know all the established laws and other requirements for registration of mortgage lending.
What if there are buildings on the site?
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. We can distinguish the principle of indivisibility of land plots and all located buildings - this is obtaining permission from the state and the presence of legislative acts. All key points must be spelled out and indicated in loan agreements. Particular attention will need to be paid to this factor: all buildings should be put into further operation and executed in private ownership. The procedure for the design and use of buildings must be regulated by applicable law.
Features of registration of a mortgage on a land plot in a banking institution
Today, there are a large number of features that relate to lending to land. The following provisions can be distinguished:
- Borrowers have every right to engage in the construction of structures in the plots. 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 contract.
- When a mortgage is drawn up on a land plot, banks are entitled to all the structures that were built during the validity of the loan agreement.
- The territory can be taken in mortgage lending, when in the future it will be used for gardening and the construction of houses and villas.
- The mortgage 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 under the number 302, which has amended provisions for regulating the registration of various agreements. The subject of the contract is a land plot. All adopted changes relate to state registration of mortgage lending of a land plot. It says about the deadlines for registering.
A new edition of article No. 13 has entered into force, which can regulate the timing of this procedure. No more than one month should pass from the moment of application submission. Also, during these terms, it is necessary to provide other supporting documents that will be required for state registration of land. But in some cases, the deadlines for filing documents can be regulated using the current legislation of the Russian Federation. Registration of a mortgage of a land plot is carried out within fifteen days from the date of submission of all documents.
Land valuation
The agreement between the lender and the borrower allows you to determine the collateral value of the land. Collateral price is the total value of the property, which subsequently appears in loan agreements. Thus, a refund of money from a banking institution can be guaranteed. This may be necessary if all obligations related to loan repayment were not fully fulfilled.
Assessment and mortgage for the land includes the following characteristics, as well as sections:
- Definition of purpose and category of land.
- The total area of the territory.
- Collection of documents that provide the right to further ownership of land. In this case, it is necessary to indicate the exact period of validity of the contract.
What points need to be considered during the appraisal of land?
During the assessment, a land 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. We can distinguish such requirements:
- Exact indication of the location of a 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 there a distance from the city center.
- Access to public transport.
Specialists undertake to assess the market value of the site being drawn up, as well as to make a future forecast of possible changes during the loan term.
Mortgage Procedure
During the process of obtaining a loan for land, the borrower may not provide a pledge to the bank. Mortgage of land involves a detailed and most thorough study of the requirements that may be presented to a particular site.
After the bank approves the loan facility, experts recommend conducting an appraised value and signing mortgage insurance contracts. The borrower has the full right to refuse certain types of insurance, as well as the signing of complex contracts. An important criterion that may affect the provision of a loan by the bank is the availability of infrastructure near the land. Also taken into account is the supply of electrical energy, gas, water and the availability of transport interchange. When issuing a mortgage, the overall size of the land 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.
- Land owned by several owners.
- Plots of municipal purpose.
- Territories that are allocated for nature reserves.
- National Park Area.
Where is the best place to buy a mortgage?
Today there are a large number of institutions and banks that offer their customers the opportunity to use the mortgage service. Banks do not issue loans to land plots that are in shared or joint ownership. Mortgage lending can be issued exclusively for the object that belongs directly to the borrower.
If the territory is owned by legal or physical entities, the bank has the full right to demand the consent of each individual owner. It is in this case that a mortgage on a land plot can be issued and issued. Sberbank today is engaged in lending and providing a mortgage for its customers. But during the process of registration of this procedure, each person should as accurately as possible study all the subtleties and features of mortgages on the ground. In this case, you can count on the legal aspects and guarantees 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 specific order, which was established by applicable law. If the agreement contains such important points as the subject of the mortgage and its final assessment, then the mortgage of land will be drawn up. Land law implies the totality of all necessary legal norms that can govern the relations of use and protection of land.
Correct and accurate assessment of the land can be carried out exclusively by professional appraisers. A prerequisite is the presence of a monetary expression, which cannot be lower than the value of the inventory.