Urgent transfer order for cancelling a mortgage loan


If you have decided to buy a property subject to a mortgage and you choose to take out a new loan with another bank instead of requesting a mortgage transfer, the seller’s bank will have to issue a redemption statement including any unpaid past-due interest.

This debt may be settled either by cheque in the presence of a notary or by an urgent transfer order (also known as a TARGET transfer or OMF transfer by its Spanish abbreviation).

What is an urgent transfer order?

Urgent transfer orders are transfers made via TARGET2-Banco de EspañaAbre en ventana nueva, where the money arrives at the beneficiary’s payment service provider account (i.e. the bank account of the seller of the property) on the same day that the transfer was ordered.

It is common for banks to order these types of transfers for the redemption or subrogation of loans.

How should the banks that carry out this transaction act?

Your bank must make sure that the transfer is effectively used for the purpose of paying off the original loan in the seller’s name. To this end, it must always have the seller’s consent.

The transferred amount will be immediately used by the seller’s bank for the agreed repayment. A banking standard operating procedure with a special code allows the seller’s bank to identify these types of transactions. The bank will then proceed to pay off the loan, provided that the customer instructed it to do so.


Once the outstanding amount of the mortgage loan is paid off in full, the bank, at the customer’s request, must issue a notification of discharge at no cost.

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