The apartment is encumbered with a mortgage – who takes care of it?
Your co-pilot in real estate law
Mag. Nevena Shotekova-Zöchling
Attorney in Vienna · 16 years of legal practice · Real estate law & purchase contracts
You keep the controls and make the decisions. We sit next to you in the cockpit, know the route and the instruments – and when it gets turbulent, we take over.
The land register extract shows a lien in favour of a bank. This puts many buyers off – but it is entirely common and, with proper handling, no risk.
Why this is not a problem
A lien secures the seller’s loan. As long as it is in the land register, the apartment serves as security for that debt – even after the sale. What matters, therefore, is that the purchase price does not go directly to the seller but is handled through an escrow agent.
How the release works
- The escrow agent requests the current balance and a release declaration from the seller’s bank – on condition that the outstanding amount is paid.
- You pay the purchase price into the escrow account.
- The escrow agent transfers the outstanding amount to the seller’s bank.
- The lien is deleted from the land register and you are registered as owner.
- Only then does the seller receive the remaining purchase price.
What the purchase contract should say
The purchase contract should expressly provide for the release of encumbrances, authorise the escrow agent to settle with the bank and make clear which encumbrances, if any, you take over (such as easements). A lawyer’s escrow is registered in the electronic escrow register of the Bar Association and insured.
And if the debt exceeds the purchase price?
Then the seller must pay the difference from their own funds or the bank must agree to a release against partial payment. This must be settled before signing – one more reason to check the land register extract early.
Frequently asked questions
Can I buy an apartment with a lien on it?
Yes. Through escrow, the seller’s loan is paid from the purchase price and the lien is deleted.
Who pays for deleting the lien?
Usually the seller. This should be set out in the purchase contract.
How long does the release take?
Usually a few weeks – depending on how quickly the seller’s bank provides the documents and the land register court makes the entry.
Mag. Nevena Shotekova-Zöchling, attorney and insolvency administrator in Vienna. As of October 2026. General information – not legal advice for your individual case.
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