The Title Shows a Mortgage. Can You Still Buy the Property?

You can still buy a property whose certificate of tradition and freedom shows a mortgage. The standard fix is cancellation at closing: the buyer pays the outstanding balance directly to the bank from the purchase price, the bank issues a cancellation deed, and both documents enter the registry together.

Sellers often say "I'll cancel it before we sign". That is the version to refuse.

What a mortgage looks like on the certificate

The certificate of tradition and freedom is requested with the property's registry number (matrícula inmobiliaria) and lists every registered event, including each mortgage, lien and encumbrance. A mortgage annotation names the creditor, the date and an amount. That amount is the ceiling registered at the time, not the current balance. A mortgage registered for 300 million pesos ten years ago may have 40 million left, or may have been paid and never cancelled.

Two things matter more than the amount:

• Is it still open? A cancelled mortgage shows a later annotation cancelling it. Without one, the lien is live, whatever the seller says.
• Who is the creditor? A regulated bank follows a documented process. A private lender, a family member or a dissolved cooperative does not.

How the cancellation works

The mortgage follows the property, not the person, so it cannot be ignored. The mechanism is simultaneity. At closing the seller signs the escritura de compraventa, the creditor signs an escritura de cancelación de hipoteca, and the payment that extinguishes the debt goes from the purchase price directly to the creditor. All documents go to the registry together, so you never hold a mortgaged title.

With a regulated bank, the seller first requests a written balance certification (balances carry daily interest, so it expires), then the bank's authorisation to cancel, then a bank representative signs the cancellation at the notary. Closing normally takes 30 to 45 days once the deal is agreed, and a bank cancellation fits inside that only if the seller starts the week the promesa is signed.

What the promesa must say

• The payment instruction. A defined portion of the price goes directly to the named creditor; the seller receives only the remainder.
• Document deadlines. The seller delivers the balance certification and the bank's authorisation by a stated date, or the deposit is returned.
• No new encumbrances. The seller warrants none will be registered before the escritura. Verify with a fresh certificate the day before the notary appointment.
• Registry outcome as the finish line. Final payment is tied to a registered certificate showing you as owner with the mortgage cancelled.

When to walk away

• The balance exceeds the sale price.
• The creditor is a private individual, with no standard process.
• There is an embargo alongside the mortgage. An embargo is a court order and unwinds on a judge's calendar.
• The creditor entity no longer exists.
• The seller refuses to show the balance certification.

Cost

The cancellation deed carries its own notary and registry charges, usually borne by the seller, but write that into the promesa. Your own costs are unchanged: about 2 percent of the price (notary 0.27 percent, registry 0.67 percent, beneficencia 1 percent), plus your lawyer's fee. On a Guatapé or El Peñol apartment at a typical asking price of about US$159,000, that is roughly US$3,200.

How we knowFigures as of October 13, 2026. Prices: active listings we verified ourselves; USD rate: TRM 3,181.74 COP per US$1, valid October 14, 2026 (Banco de la República, via datos.gov.co).

Frequently asked questions

Can I buy a property that still has a mortgage registered?

Yes. Part of the price goes directly to the creditor, who signs a cancellation deed filed at the registry with your purchase deed. The certificate then comes back in your name with the lien cancelled.

Is the amount on the certificate what the seller still owes?

No. It is the mortgage ceiling registered when the loan was taken. Only the creditor can state the real balance, in a written certificación de saldo.

How long does a cancellation add to closing?

Usually nothing, if the seller starts early. Closing takes 30 to 45 days and a regulated bank's process generally fits inside that.

Who pays for the cancellation deed?

Normally the seller, since it is their debt, but write it into the promesa de compraventa.

What is the difference between a mortgage and an embargo?

A mortgage is a voluntary lien cancelled by paying the creditor. An embargo is a court-ordered seizure lifted only by the court, which makes it far more serious.

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