Can a flat with a mortgage be sold? Yes. A mortgage does not prohibit a sale, but it follows the flat, so the debt must be closed out of the price and the mortgage deleted. Read the loan contract as well: if it requires the bank's consent to a sale, obtain it in writing before the preliminary contract.
Many flats for sale are still being paid off. The seller wants to close the loan with the sale proceeds, and the buyer does not want to pay for a flat that carries someone else's debt. Local searches show both sides of the problem: next to "prodaja stana pod hipotekom" (selling a flat with a mortgage) people add "iskustva" (experiences), "forum" and "banke" (banks), and next to "brisanje hipoteke" (mortgage deletion) most often "iz katastra" (from the cadastre), "koliko traje" (how long it takes), "nakon otplate kredita" (after the loan is repaid) and "notar". Buyers search for "kako kupiti stan pod hipotekom" (how to buy a flat with a mortgage) and "kupovina stana pod hipotekom na kredit" (buying a mortgaged flat with a loan).
This article explains what the law says about a mortgage when a flat changes owner, in what order the money should move so nobody is exposed, how long the bank has to confirm the debt is paid, and what has changed for early repayment of housing loans.
The mortgage follows the flat, not the owner
A mortgage is created by registration in the real estate cadastre and gives the creditor, usually a bank, the right to be paid from the value of the flat ahead of other creditors, regardless of any change of owner. That is the key point for a buyer: if you buy a flat with a registered mortgage and the seller's debt stays unpaid, the bank can still recover it from that flat.
The mortgage is visible in the cadastre extract, in the section on encumbrances, with the creditor and the amount of the claim. The law also requires the register of mortgages to be published on the website of the authority responsible for registering them. What else to read in the cadastre extract is covered in our article on checks before buying.
So selling a flat with a mortgage is not prohibited, but it has to be organised so that the debt is closed and the mortgage deleted before the buyer ends up without the money and without a clean flat.
The order: how the money moves so nobody takes a risk
| Step | Who | What happens |
| 1 | Seller | Asks the bank for a written statement of the debt for early repayment on a set date |
| 2 | Both parties | Conclude a preliminary contract at a notary stating that part of the price is paid directly to the bank |
| 3 | Buyer | Pays that part to the bank or through the notary's special account, and the rest to the seller |
| 4 | Bank | Within eight days after the debt is paid, issues a confirmation that the mortgage has ended |
| 5 | Seller as mortgage debtor | Files the request to delete the mortgage on the basis of the confirmation |
| 6 | Buyer | Checks the new cadastre extract: the buyer is the owner and there is no mortgage |
On receiving a request for early repayment, the lender must without delay provide the information needed for that decision, on paper or another durable medium. A statement for a specific date matters because interest runs until the day of payment.
Paying through the notary's special account means the money arrives only once the agreed conditions are met. Under the notary tariff the fee is 0.3% of the amount, at least 150 €, for every started six months. What the contract itself looks like and what else the notary charges is explained in our article on the purchase contract at the notary, and deposits and preliminary contracts in our article on the kapara deposit.
Early repayment of a housing loan without a fee
Under the 2025 Law on Consumer Credit, a consumer may repay a loan early, in part or in full, at any time and is entitled to a reduction of the total cost for the interest and charges of the remaining period. For an ordinary consumer loan with a fixed rate, the bank may charge a fee of up to 1% of the amount repaid early, or up to 0.5% if no more than 12 months of the loan remain, and only if early repayments within 12 months exceed 10,000 €.
For a housing loan the bank is not entitled to that fee. Under the law, a housing loan is a consumer loan secured by a mortgage on real estate or a loan whose purpose is to acquire real estate. The law has applied since the end of 2025, and the rule on housing loans expressly also covers contracts concluded before the law came into force in February 2025. If the bank still charges an early repayment fee on a housing loan, ask for a written justification.
This applies to individuals using the loan outside their business activity. A loan taken by a company or a sole trader for business purposes is not a consumer loan.
Deleting the mortgage: a confirmation within eight days
When the debt has been paid together with interest and ancillary claims, the mortgage ends by deletion from the cadastre. The Law on Property Relations gives the bank a clear deadline:
- Within eight days of the mortgage ending, the bank must draw up and deliver to the debtor a confirmation that the mortgage has ended.
- On the basis of that confirmation, the mortgage debtor files the request for deletion with the authority responsible for registration.
- If the bank does not deliver the confirmation in time, the debtor can ask a court to establish that the debt has been paid and order the deletion, and the bank is liable for any damage this causes.
If consent to deletion is given as a unilateral statement at a notary, the notary's fee for such a statement under the tariff is 60 €. This article of the law does not set how long the deletion itself takes in the cadastre, so check the result in the cadastre extract before paying the rest of the price.
Buying a mortgaged flat with a loan
If the buyer is buying with a loan, the buyer's bank also registers a mortgage on the same flat. When there are several mortgages on one property, priority is determined by the moment the registration request was filed, and creditors are paid in that order. That is why it matters to the buyer's bank that the old mortgage is deleted, and to the buyer that the order of payments and registrations is written into the contract. How a housing loan works is covered in our article on mortgages and interest rates.
If instead of paying, the buyer takes over the seller's debt, the debt taken over forms part of the transfer tax base, because everything the buyer gives to acquire the flat counts as consideration. How that tax is calculated is explained in our article on property transfer tax.
What the buyer must check
| Check | Where | Why |
| Registered mortgages, creditor and amount | Cadastre extract | So you know how much debt must be closed |
| The bank's written statement for the payment date | Seller's bank | So the payment covers the whole debt with interest |
| Clause on payment to the bank | Preliminary contract and contract at the notary | So part of the price does not go to the seller before the loan is closed |
| Confirmation that the mortgage has ended | Seller's bank, within eight days | The basis for deletion |
| New cadastre extract | Cadastre | Proof that the mortgage has been deleted |
If you are selling a flat and still preparing the listing, the whole process from price to handover is covered in our guide to selling a flat. You can post your listing in the real estate category.
Frequently asked questions
Is it safe to buy a flat with a mortgage? Yes, if part of the price goes directly to the bank or through the notary's account, if you have a written statement of the debt, and if you pay the rest only once you see that the mortgage has been deleted or the deletion request has been filed.
Who deletes the mortgage after the loan is repaid? The bank issues a confirmation that the mortgage has ended within eight days, and on that basis the debtor files the request for deletion from the cadastre. If the bank is late, the debtor can ask a court to order the deletion.
Does the bank charge for early repayment of a housing loan? Under the Law on Consumer Credit, the bank is not entitled to an early repayment fee on a housing loan. The rule expressly also covers contracts concluded before February 2025.
How long does mortgage deletion take? The bank has eight days for the confirmation. How long the deletion then takes in the cadastre is not set in that article of the law, so follow it through the cadastre extract.
Can I buy a mortgaged flat with a loan? Yes, but your bank also registers a mortgage, and priority depends on the moment the registration request is filed. So the old mortgage must be deleted and the order of payments written into the contract.
Sources
The rules on mortgages, priority and the end of a mortgage come from the Law on Property Relations (articles 308, 318, 324 and 350). Early repayment is governed by the Law on Consumer Credit (Official Gazette of Montenegro 15/2025, articles 2, 47 and 83), and the transfer tax base by article 9 of the Law on Property Transfer Tax. The notary fees are taken from the Tariff on Fees and Expenses of Notaries (Official Gazette of Montenegro 49/2026, tariff numbers 1 and 15). Fijaka is a listings platform and does not give legal or financial advice; for a specific contract, consult a notary, your bank or a lawyer.