A deed of division is an important document for a mortgage application. The (draft) deed is required when you split up and one of the partners takes over the house. The partner who will leave will then be released from joint and several liability for the mortgage debt. In this article you can read everything about the deed of division, what exactly it is useful for, why a notary is needed and what the deed of division costs are at the notary.
Introduction deed of division
Did you and your ex-partner have a matrimonial home together? In that case, when you separate, there are often two options: the joint owner-occupied house is sold or the house is allocated to one of the two partners. The partner who buys out the other will also take over the mortgage.
In the situation that the house has been allocated to one of the two partners, the person is obliged to submit a deed of division to the lender. This is a notarial deed. The notary establishes the new reality, whereby the ownership of the house has changed.
If you are going to divorce your partner, a deed from the notary is usually required. In most cases, filing for a divorce causes a lot of stress and hassle. Sometimes it comes unexpectedly and that involves painful emotions. Then you suddenly have to leave the house and all kinds of things have to be distributed. The shared home is an important part of the division of property. By means of a deed of division, the property belonging to the community can be properly divided. It is also possible to put the house in one name.
What is a deed of division?
If a notary has made the deed, it is determined that the house that was previously jointly owned by you will be allocated to one of you. As soon as a scribble has been made, the notary will register the deed at the Land Registry. When the deed is registered, the house is officially registered in only one name.
When is it necessary?
Having a home together means that the associated mortgage must also be borne by both. As soon as you have split up because of the divorce and one of you has closed the door behind him and left the house, the person will naturally no longer want to continue to pay for the expenses, such as the mortgage and maintenance costs. The mortgage is often the most important cost item. The mortgage loan must therefore be put in one name. The lender has an important requirement for this and that is that the house is only registered in one name. By making notary fees for the deed, you ensure that your ex-partner is released from the burden and is removed from the mortgage deed.
Such a deed to divide the house is not always necessary. For cohabitants and nothing has been arranged or is the house only registered in one name? Are you married on prenuptial agreement and the house is not yours? In this situation a deed is usually not required. If you want to sell the house and no one is left behind in the house, you do not need to have a deed of division drawn up by the notary. As soon as the house has been sold, the civil-law notary will divide any proceeds between the two of you and it will be settled because the house has been sold.
Why is this document necessary for the mortgage application?
If, in the event of a relationship breakdown, one of the partners wants to continue living in the house, the house must be allocated to that person.
From a legal point of view, a notarial deed is required to properly arrange this legally. The law states that this is mandatory for immovable property. The lender will therefore always request a (draft) deed of division upon dismissal of joint and several liability. Even when buying a new house and even if you were divorced years ago, it is possible that the provider requests the document. After all, many ex-partners leave the house undivided and it is not possible to encumber the house with a possible bridging mortgage without the permission of the person.
Why is a notary necessary?
If you get divorced, there will be good agreements in a divorce agreement about how you will separate and the division of the balance in the bank accounts, the car, furniture, television and other items. It is also possible to agree with each other in the covenant how the individual, joint home will be divided. In order to be able to effectuate these agreements, a notary is nevertheless needed. With the aid of the deed of division, the house is delivered to the ex-partner. In addition, agreements are also made in the document about the mortgage on the home. A notarial deed of division is therefore required for the transfer of ownership of the house. The civil-law notary will also have this important change implemented in the Land Registry. In this way it is clear to everyone what the current ownership situation of the house is.
What are the deed of division of costs?
The costs of a deed are quite different from notary’s office to notary’s office. Because of the law on the notary office, notaries are allowed to determine their own notary rates. What you pay for a deed can vary considerably.
From 500 euros at a budget notary and at another notary’s office, the costs of the deed can entail 1500.-. Please note that when requesting the notary costs, additional costs are also taken into account and an all-in rate is agreed. Otherwise you may be surprised by additional Land Registry costs. There are costs associated with registering the deed of division in the Land Registry. By engaging an advisor at Bliss, you have a clear idea in advance of what arranging the deed of division will cost in your specific situation.
How long does it take to request a deed of division
A good notary is worth gold. An application for a deed does not have to take long. Opting for the cheapest notary can turn out to be expensive afterwards. Therefore choose quality. After all, it concerns major interests and important subjects in your life. You just want to have that arranged properly. A deed can take a few days to a few weeks. Due to Bliss’s collaboration with a network of civil-law notaries who draw up many deeds, the process will run quickly and smoothly.
Who pays the bill for the deed at the notary?
The law does not specify who has to pay the bill of the deed of division. You and your ex-partner will have to make good agreements about who will pay the notary’s bill or how much each of you will pay for the costs of the deed of division. Often costs of the deed of division are classified as a form of “buyer’s costs”. The permanent partner will then pay for the notary’s invoice. The costs of the deed are then not deposited with the person who leaves. Exceptionally, both ex-partners pay half of the notary’s fees with regard to the deed of division.
