How to Check if a Property Has Mortgages

Buying a house is a major life step, often filled with excitement but also with some understandable worries. One of the biggest concerns buyers face is discovering, after the purchase, that the property has hidden legal issues—such as an undisclosed mortgage. Fortunately, the law provides reliable ways to protect yourself. Knowing how to check if a property has mortgages is essential to secure your investment and avoid unpleasant surprises.

What Is a Mortgage and How Does It Affect Ownership?

A mortgage can be thought of as a legal “lock” placed on a property by a creditor—usually a bank—to guarantee repayment of a loan. When you take out a mortgage, the bank doesn’t take the property away from you, but it does have a claim on it. If you fail to repay the loan, the bank has the right to recover the money by forcing the sale of the property, through a legal process called foreclosure.

Until the mortgage is fully paid off, this “lock” remains on the house. You can live in it, rent it out, or renovate it, but you cannot sell the property free of the mortgage unless the debt is cleared first. If you try to sell a property still burdened by a mortgage, buyers will usually demand a significant discount or might refuse to buy it altogether.

Even if you sell the property, the mortgage remains attached unless it is formally cancelled. This means that the new owner would inherit the mortgage “lock” unless the debt is paid off during the sale. To avoid this, the sale contract typically includes provisions where part of the sale price is used to pay off the mortgage, and the bank agrees to cancel it at the time of transfer.

In cases where there are multiple mortgages on the same property, the order in which they were registered determines priority in repayment. Those registered first get paid first in case of foreclosure, while later creditors might risk losing their money. Mortgages usually last until the loan is paid off, with registration renewal processes in place. After 20 years, if not renewed, a mortgage expires.

It’s worth noting that banks are not the only ones who can register mortgages. Public administrations and other creditors can also place mortgages under certain conditions, but the principle remains the same: it’s a legal right to secure payment.

 How Does a Mortgage Inspection Work?

To find out if a property has any mortgages or other legal restrictions, a mortgage inspection is necessary. This means checking the public real estate records, which detail all the legal “baggage” tied to a property. These records are maintained by the Real Estate Advertising Services of the Revenue Agency, and now much of the data is digitized.

The inspection reveals several key types of information:

• Registrations (Iscrizioni): These show mortgages and other guarantees placed on the property.
• Transcriptions (Trascrizioni): These detail transfers of ownership like sales or inheritances, as well as legal claims such as foreclosures or seizures.
• Annotations (Annotazioni): These reflect updates or cancellations to previous registrations, such as the cancellation of a mortgage after debt repayment.

To carry out this search, you’ll need the property’s cadastral details—like the municipality, map sheet, and parcel number. While online searches through the Revenue Agency’s website are possible, they may not cover older records due to staggered digitization dates across provinces. For a thorough check that spans the last 20 years (which is the standard timeframe to ensure property safety), it might be necessary to visit the provincial office in person and consult the physical records.

Mortgage Inspection vs. Mortgage Certificate

It’s important to understand the difference between a mortgage inspection and a mortgage certificate. A mortgage inspection is simply consulting the public registers for information and does not carry any legal certification or guarantee. It provides a list of relevant entries but isn’t proof of the property’s legal status.

A mortgage certificate, on the other hand, is an official document issued by the Land Registry Conservator. It certifies the information contained in the registers and holds legal weight. Similarly, a notarial report, prepared by a notary after personally conducting searches, also carries full legal certification.

In formal or legal settings—such as property foreclosure proceedings—only a mortgage certificate or a notarial report is accepted. A simple inspection is not sufficient for these purposes.

 The Crucial Role of the Notary

When buying or selling a property, the notary plays a vital role in ensuring the transaction is secure. One of their main responsibilities is to verify that the property is free from mortgages and other legal constraints. This involves conducting thorough searches in both mortgage and cadastral records.

This verification is not just a formality. It is a direct professional obligation meant to protect the buyer. The only time this duty can be waived is if the buyer explicitly agrees to give up these checks. If the notary skips this step without such an agreement, it is considered professional negligence.

Consequences of Not Performing Mortgage Checks

If the notary fails to perform proper mortgage checks and the buyer ends up with a property burdened by an unknown mortgage, the notary can be held liable for damages. These damages can include the costs involved in cancelling the mortgage, difficulty in reselling the property, or problems obtaining new financing.

Even if the mortgage turns out to be invalid or ineffective, its mere presence in the public registers can block or limit the property’s sale and thus cause harm to the buyer. The notary’s liability is only avoided if it can be proven that the buyer was already aware of the mortgage before signing or explicitly waived the checks.

In Summary

Mortgages are legal tools that guarantee loan repayment by attaching a claim to a property. If you’re buying a home, conducting a mortgage inspection is essential to ensure the property is free from debts and legal claims. While simple inspections provide useful information, official certificates or notarial reports carry the legal weight needed for secure transactions.

The notary plays a central role in verifying that a property is clear of mortgages and other encumbrances. Their duty protects buyers and ensures that property sales proceed smoothly and safely. Skipping these checks risks financial loss and legal complications—so always make sure thorough due diligence is performed before signing on the dotted line.

VGS Family Lawyers is a law firm that offers assistance to English-speaking clients with interests in Italy.

In case you need assistance, please write to: info@vgslawyers.com.