A receipt is a written confirmation from the creditor to the debtor that he has fulfilled his debt. It is a private document, and in connection with mortgage loans, it is most often encountered when refinancing a mortgage, where the receipt is a condition for drawing down a new mortgage loan.
What is a receipt?
The receipt proves that the debtor has fulfilled his debt. It can also be called a receipt, which confirms that an obligation to a creditor has been extinguished by performance.
What does such a receipt for payment of a debt look like?
- Receipts must be in writing.
- It should identify the persons of the debtor and the creditor, at least by name, but ideally also by date of birth and place of residence.
- It should specify the subject matter of the debt.
Did you know that receipts are not issued automatically, they often have to be requested after the debt has been settled? The creditor is then obliged to issue the receipt, otherwise the debtor may be denied lawful performance. If the creditor issues a receipt before the debt has been paid, the creditor is deemed to have forgiven the debt to the debtor.
Bank receipts in the case of a mortgage
As mentioned in the introduction, it is most often encountered when refinancing a mortgage, whereby the bank confirms that it gives its consent to early repayment of the mortgage and also to the deletion of the lien from the property after payment of the principal.
The bank does not issue it automatically at the end of the fixation period, so be sure to apply for it well in advance. This is the only way you will be able to refinance your mortgage with another bank.