Hello,

I‘m in the process of buying a small Mökki for vacations, but am not really familiar with the legal aspects of it in Finland and would love to have an outside opinion on a small matter.

According to the documents, there is an existing mortgage entry (see screenshot).

Since I am not intending to take a loan, I asked the seller if he could cancel / remove that entry (as is usually done by the seller in my home country). However, he prefers not to because of „high associated fees for him“. Instead, I should be doing it after the transaction „because then it will be free of charge for you“.

Is this normal / are there any obvious risks here for me as the buyer?

Thank you to anybody taking the time to help 🙂

by Loslompolos

5 comments

  1. Do you know for a fact that this mortgage is tied to the property you are buying (and not some other debt/loan)? Because if the mortgage is set as a collateral to another loan, it may be hard or impossible for you to release.

  2. I don’t know if kiinnitys=mortgage but if the kiinnitys is tied to the property and on the purchasing agreement it is mentioned that it moves to the buyer then it should be a non issue. If there is a kiinteistövälittäjä involved he/she could probably explain and check things out. The kiinnitys in itself is a valuable thing so one might not need to cancel it outright. If you ever need a loan from bank you can give them the kiinnitys and get cash quite quickly.

  3. Looks like this Mökki is used as a warranty for a different loan.

  4. Just make sure the kiinnitys is not tied to a loan, after that you can nullify it or use it as a collateral for a loan later yourself. It makes no sense to nullify it really, as it costs money, and you need to pay again if you need one later.

  5. As I understand there can be kiinnitys paper made but it doesnt mean it is used as collateral in any loans. So two things to make aure. 1) Is it tied to some loan. 2) Does kiinnitys get nulified or does it just transfer to you.

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