If you are thinking of applying for a mortgage loan , it is likely that you have come across a section within the requirements that says: Certificate of Freedom from Lien and, perhaps, you thought: what is that? What is it for? where do i get it? or is it important?
Before starting with the definition and importance of this document, the first thing you should know is that it is an essential requirement for the process of a mortgage loan , so knowing in depth its usefulness will be very helpful in the process.
We define lien as the obligation, tax or tribute that is applied to a property or property and the use made of them.
Tax in the tax area is defined as the amount or percentage that is applied to a taxable base and that results in the amount to be paid on a tax that can be of a fixed or variable rate.
What is the CLG?
Let’s define freedom from lien or free lien as the current situation in which a property is found.
At the time of processing a mortgage loan, banks or finance companies request the applicant a Certificate of Freedom from Encumbrance , a document that states whether the property is free of encumbrance or, on the contrary, is encumbered.
What is it for?
The Certificate of Freedom from Encumbrance is used for different purposes such as certifying to an authority, person or institution the current legal situation in which the property in question is located.
That is, this document mentions if the property does not have any bond, mortgage, embargo or any other encumbrance registered.
Where to process the CLG?
The Certificate of Freedom from Encumbrance must be obtained through the registrations and existing documents in the archives of the Public Registry of Property and Commerce in municipal, state or federal entities.
If you do not want to go through the procedure in person, it is important that you know that there is also an online mode in which you can do everything through a digital device.
Who can request it?
This document can be requested by both the interested party and a legal representative, parent or guardian and the process will be the same in both cases.
The cost of the CLG varies according to the place where it is processed, for example, according to the government table of procedures in Mexico City, the price is 592 pesos in the ordinary modality, that is, in the normal period of time and If you need to speed up the process, there is the option of processing it urgently for a cost of 1,185 pesos.
It is important to point out that there are states in which the cost is much lower and ranges from 300 to 480 pesos, so it is important that you consult these data according to your geographical location.
The delivery process usually takes 5 to 8 business days, but sometimes the expedition can take more than a month.
1. Submit a duly completed application for the issuance of the Lien Certificate, usually, you can find it online or request it from the corresponding institution.
This application must be filled out with data such as:
- The real folio number
- Address of the real estate
- Name of the last owner of the property
Additional data for legal entities:
- The number of the commercial folio or legal person folio
- The business name or name of the association or society
2. Make and accredit the payment of rights
3. The person who carries out the procedure must present valid official identification with a photograph (it can be INE, passport, professional license or driver’s license)
What is the validity?
The validity of this type of document is variable since it can be from one to three months or for a certain number of years.
It is important that you make sure you know the validity of the certificate because after this time it will be of no value for any administrative procedure.
Can they deny the issuance of Freedom from Lien?
The answer to this question is yes, sometimes it may happen that the request for issuance of the Certificate of Freedom from Lien is denied and these maybe some of the causes:
- Incorrect location of the property
- Incorrect folio of the property
- Incorrect name of the Property Owner