# Can you sell a mortgaged property?

> A property with an active mortgage can be sold. Learn how the existing loan is repaid, the purchase price is distributed and the mortgage is removed.

- Web page: https://urbaniagent.rs/en/blog/can-you-sell-a-mortgaged-property
- Language: English
- Other language: https://urbaniagent.rs/blog/imam-hipoteku-da-li-mogu-da-prodam-stan.md
- Updated: 2026-08-13

- Published on: 2026-08-04
- Author: Urbani Agent
- Categories: Selling and Renting
- Tags: mortgage, property sale

“I have an active housing loan and the apartment is mortgaged — can I still sell it?”

This is one of the most common questions we receive from property owners.

The answer is **yes**.

Having a mortgage does not mean that you must wait until the entire loan has been repaid before selling the property. The process simply needs to be coordinated with the bank in advance and clearly defined in the sale documentation.

## A mortgage does not prevent the sale

A mortgage serves as security for the bank while the loan remains outstanding. The property can therefore be sold, but the existing debt and the procedure for releasing the property from the mortgage must be addressed before the transaction is completed.

The first step is to request an exact outstanding balance and early repayment instructions from the bank. Early repayment is initiated by submitting a request to the bank, while the precise procedure and timing depend on the loan agreement and the individual bank.

## How is the purchase price paid?

The buyer and seller agree on the total purchase price, while the payment structure is defined precisely in the contract.

A common arrangement works as follows:

- the amount required to repay the outstanding loan is paid in accordance with the bank’s instructions;
- that payment settles the seller’s remaining debt;
- the remaining portion of the purchase price is paid to the seller;
- once the debt has been settled, the bank issues the document required to remove the mortgage.

This provides the buyer with a transparent payment process, while allowing the seller to repay the loan and complete the sale.

The exact sequence of payments must be adapted to the bank’s requirements, the buyer’s method of financing and the terms of the contract.

## How is the mortgage removed?

Once the loan has been fully repaid, the bank, as the mortgage creditor, issues its consent for the mortgage to be removed.

An application is then submitted to the Real Estate Cadastre. The Serbian Republic Geodetic Authority requires a document confirming that the secured debt has ceased to exist and authorising the deletion of the mortgage.

It is therefore not entirely accurate to say that the bank “removes the mortgage on the same day”. The bank issues the necessary documentation, while the formal deletion is carried out through the Cadastre.

## Is the buyer protected?

The buyer should know in advance:

- the exact amount still owed to the bank;
- where and under whose instructions that amount will be paid;
- when the bank will issue its consent to remove the mortgage;
- when the remaining purchase price will be paid;
- under which conditions the buyer can register ownership.

All these points should be clearly regulated by the contract and coordinated with the bank before the transaction takes place.

When the documentation is properly prepared, selling a mortgaged property is neither unusual nor impossible.

## The procedure depends on the individual case

The process may differ depending on:

- the bank that issued the seller’s loan;
- whether the buyer is paying from personal funds or using a new housing loan;
- the remaining loan balance;
- whether the purchase price exceeds the amount required to repay the loan;
- the documentation and payment sequence required by the bank.

This is why the entire process should be checked before paying a deposit or signing the final agreement.

## Are you selling a mortgaged property?

If your property is under mortgage and you are considering selling it, contact us.

We will review the documentation, help you understand the procedure and explain how the transaction could be structured in your specific case.

**The initial consultation comes with no obligation.**

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Contact: Urbani Agent · +381642420492 · info@urbaniagent.rs · Omladinskih brigada 90v, Novi Beograd