[{"data":1,"prerenderedAt":251},["ShallowReactive",2],{"content-page:en:topics\u002Fland-charge-registration":3,"optimized-image:{\"src\":\"\u002Fimages\u002Flegacy\u002Fmaxda\u002Fthemen\u002Fgrundschuldbestellung\u002Fimage-thumb__171331__auto_1f891bd5eb142807016c2634ecc9a380\u002Fgrundschuldbestellung-maxda_100p_01.png\",\"preset\":\"default\",\"widths\":[640,768,896,1024,1280,1536,1792,2048],\"formats\":[\"webp\"],\"quality\":75,\"fit\":\"cover\"}":209,"optimized-image:{\"src\":\"\u002Fimages\u002Flegacy\u002Fmaxda\u002Fthemen\u002Fgrundschuldbestellung\u002Fimage-thumb__171325__auto_1f891bd5eb142807016c2634ecc9a380\u002Fgrundschuldbestellung-maxda-was-ist-die-grundschuldbestellung_100p_MITTIG_02.png\",\"preset\":\"default\",\"widths\":[640,768,896,1024,1280,1536,1792,2048],\"formats\":[\"webp\"],\"quality\":75,\"fit\":\"cover\"}":222,"optimized-image:{\"src\":\"\u002Fimages\u002Flegacy\u002Fmaxda\u002Fthemen\u002Fgrundschuldbestellung\u002Fgrundschuldbestellung-maxda-allgemeine-bestimmungen_100p_RECHTS_03.png\",\"preset\":\"default\",\"widths\":[640,768,896,1024,1280,1536,1792,2048],\"formats\":[\"webp\"],\"quality\":75,\"fit\":\"cover\"}":231,"optimized-image:{\"src\":\"\u002Fimages\u002Flegacy\u002Fmaxda\u002Fthemen\u002Fgrundschuldbestellung\u002Fimage-thumb__171328__auto_1f891bd5eb142807016c2634ecc9a380\u002Fgrundschuldbestellung-maxda-einlösung -einer-grundschuld_100p_MITTIG_04.png\",\"preset\":\"default\",\"widths\":[640,768,896,1024,1280,1536,1792,2048],\"formats\":[\"webp\"],\"quality\":75,\"fit\":\"cover\"}":242},{"page":4,"alternates":204},{"id":5,"title":6,"asideNav":7,"backLink":26,"body":29,"description":187,"extension":188,"hero":189,"hidePageHeader":192,"locale":193,"meta":194,"navigation":192,"pageKind":195,"path":196,"seo":197,"seoDescription":198,"seoTitle":199,"slug":200,"stem":201,"translationKey":202,"__hash__":203},"pages\u002Fpages\u002Fen\u002Ftopics\u002Fland-charge-registration.md","Land charge registration",[8,11,14,17,20,23],{"href":9,"label":10},"#1","General information on land charge registration",{"href":12,"label":13},"#2","What is land charge registration?",{"href":15,"label":16},"#3","Land charge and mortgage compared",{"href":18,"label":19},"#4","Example costs for a land charge registration",{"href":21,"label":22},"#5","General provisions on the land charge",{"href":24,"label":25},"#6","Redemption of a land charge",{"href":27,"label":28},"\u002Fen\u002Ftopics","back",{"type":30,"value":31,"toc":177},"minimark",[32,39,43,51,54,57,62,65,69,72,75,78,81,84,87,92,95,98,103,106,109,112,115,118,123,126,130,133,136,139,142,145,148,153,156,159,162,165,168,171,174],[33,34,35],"p",{},[36,37],"span",{"id":38},"1",[40,41,10],"h2",{"id":42},"general-information-on-land-charge-registration",[44,45],"content-image",{"align":46,"alt":47,"size":48,"src":49,"provider":50},"center","Land charge registration - MAXDA explains","lg","\u002Fimages\u002Flegacy\u002Fmaxda\u002Fthemen\u002Fgrundschuldbestellung\u002Fimage-thumb__171331__auto_1f891bd5eb142807016c2634ecc9a380\u002Fgrundschuldbestellung-maxda_100p_01.png","none",[33,52,53],{},"Anyone who buys or builds a house has a lot to think about. There are numerous steps to work through and many of them depend on each other. It is easy to lose track, which can lead to delays in the planned move-in.",[33,55,56],{},"Therefore it is worth creating a list in advance of the purchase or construction outlining what needs to be done and when. In most real estate projects financing is involved. In addition to construction and trade-related points and plans, there are also several important steps to consider. One of the most important steps is the land charge registration.",[33,58,59],{},[36,60],{"id":61},"2",[40,63,13],{"id":64},"what-is-land-charge-registration",[44,66],{"align":46,"alt":67,"size":48,"src":68,"provider":50},"Meaning of land charge registration","\u002Fimages\u002Flegacy\u002Fmaxda\u002Fthemen\u002Fgrundschuldbestellung\u002Fimage-thumb__171325__auto_1f891bd5eb142807016c2634ecc9a380\u002Fgrundschuldbestellung-maxda-was-ist-die-grundschuldbestellung_100p_MITTIG_02.png",[33,70,71],{},"A land charge registration refers to an entry in the land register (Grundbuch) that is usually made in connection with taking out a loan for a property purchase, house construction or renovation.",[33,73,74],{},"The land charge registration is basically a kind of contract that is always concluded by notarial certification. This contract is always made between the owner of a property and usually a lender. If a customer takes out a mortgage loan, they generally must be the owner of the respective property in order to have such an entry made.",[33,76,77],{},"The lender, in turn, secures its claims by means of the land charge. It gives the lender the right to realize the property if payments are not made. The land charge itself is, however, not yet tied to specific contractual terms. This is usually regulated in the loan agreement by a purpose declaration (Zweckerklärung) made by the owners. The land charge registration itself is initially only the owners' consent to register a lender’s land charge in the land register.",[33,79,80],{},"The land charge is an abstract right that only provides the possibility of securing a loan up to the registered amount. This scope can be used by the lender for a single loan, for several loans, or not fully at all. This arrangement gives a wide range of uses through a single land charge registration.",[33,82,83],{},"How high the maximum possible land charge is depends on the loan amount and the value of the property. In general, the aim is to register the total loan amount as a land charge. The prerequisite, of course, is that the property is worth at least the amount of the loan and that the money can, if necessary, be recovered through compulsory sale if the borrower can no longer meet the bank's claims. This prerequisite can become problematic if the purchase price far exceeds the value the bank calculates for the property. The difference between purchase price and the bank's valuation must then be bridged by the borrower with equity.",[33,85,86],{},"The land charge can also be assigned to another lender if part of the total amount has been repaid or not fully used. The land charge can also be deleted when there is no longer any security reason, i.e. when the loan has been repaid. Both the entry and the deletion are carried out by the land registry office (Grundbuchamt). Each municipality has its own land registry office.",[33,88,89],{},[36,90],{"id":91},"3",[40,93,16],{"id":94},"land-charge-and-mortgage-compared",[33,96,97],{},"Unlike a mortgage (Hypothek), the entry of a land charge is not automatically deleted after the loan amount has been repaid. The lending institution must explicitly approve the deletion of the entry. The reason is that, unlike a mortgage, the land charge is independent of the loan amount. A mortgage is therefore tied to a specific loan, so a new mortgage must be registered for a new loan, incurring notary and land registry fees again. If a land charge is already registered, it can also be used for new loans and other lending institutions. Although costs are incurred for such a transfer, they are significantly lower.",[33,99,100],{},[36,101],{"id":102},"4",[40,104,19],{"id":105},"example-costs-for-a-land-charge-registration",[33,107,108],{},"You have a land charge registered for €200,000. For just the notarization you can expect €400 to €500. Additional notary costs will bring the total to around €1,000 payable to the notary alone. The fees for registering the land charge in the land register are roughly in the same range as the costs for the land charge deed. Generally, it does not make a difference whether it is a land charge or a mortgage.",[33,110,111],{},"The costs for changing a land register entry, such as the assignment of a land charge, depend on who executes the assignment: the owner, the bank or the notary.",[33,113,114],{},"In any case, a notary is required for certification. Notary fees and land registry fees are therefore also incurred here; these are roughly 20% or about one third of the costs of a new entry.",[33,116,117],{},"The fees for a deletion are priced in a similar range. Savings are possible if the bank has already prepared a deed for deletion.",[33,119,120],{},[36,121],{"id":122},"5",[40,124,22],{"id":125},"general-provisions-on-the-land-charge",[44,127],{"align":128,"alt":22,"size":48,"src":129,"provider":50},"right","\u002Fimages\u002Flegacy\u002Fmaxda\u002Fthemen\u002Fgrundschuldbestellung\u002Fgrundschuldbestellung-maxda-allgemeine-bestimmungen_100p_RECHTS_03.png",[33,131,132],{},"Under German law the land charge is a type of mortgage lien (Grundpfandrecht). This lien is regulated in the Bürgerliches Gesetzbuch (§ 1191 ff. BGB). When questionable practices concerning land charges came into the market and press before the start of the real estate crisis, the regulations in Germany regarding the land charge were changed. This happened in mid-2008.",[33,134,135],{},"This change primarily protects property owners. Sales of claims on land charge registrations created dependencies and claims that customers could hardly decipher. Now the circumstances are secure and transparent. The land charge should be understood as the owner's consent to compulsory sale (Zwangsversteigerung) if the owner fails to meet their obligations toward the holder of the land charge.",[33,137,138],{},"There are two different forms of the land charge. There is the Buchgrundschuld (book land charge) and the Briefgrundschuld (certificate\u002Fletter land charge). For the Buchgrundschuld the land charge is merely entered in the land register. For the Briefgrundschuld, in addition to the entry in the land register, a land charge certificate (Grundschuldbrief) is also created. This is an official form provided by the Bundesdruckerei.",[33,140,141],{},"Every land charge registration is fundamentally an order for a Briefgrundschuld. Only when the Briefgrundschuld is explicitly excluded is a Buchgrundschuld registered. A land charge certificate, which is usually created and issued to the bank as lender, is a security instrument.",[33,143,144],{},"This security instrument can be traded to a certain extent. A Briefgrundschuld can therefore be transferred to another creditor. This also illustrates how independent the land charge is from the actual contracts secured by the land charge. From the entry in the land register, it may not be possible to determine who the current lender of an outstanding loan is. The outstanding loan amount may, incidentally, be at most equal to the amount of the registered land charge. Often this independence between land charge and contract is, however, removed by a specific purpose declaration (Zweckerklärung). This purpose declaration is often also a concrete step before the disbursement of a mortgage loan.",[33,146,147],{},"In this way both parties — the customer and the lender — are secured: the loan and the land charge are used only for the purpose of the current loan agreement. It is usually also stipulated that a claim for return exists after repayment of the liabilities. Banks often satisfy this by providing a consent to deletion of the land charge.",[33,149,150],{},[36,151],{"id":152},"6",[40,154,25],{"id":155},"redemption-of-a-land-charge",[44,157],{"align":46,"alt":25,"size":48,"src":158},"\u002Fimages\u002Flegacy\u002Fmaxda\u002Fthemen\u002Fgrundschuldbestellung\u002Fimage-thumb__171328__auto_1f891bd5eb142807016c2634ecc9a380\u002Fgrundschuldbestellung-maxda-einlösung -einer-grundschuld_100p_MITTIG_04.png",[33,160,161],{},"The land charge registration often serves to secure a loan. There are, however, several aspects to consider regarding this security. A key concept is rank. The amount of the loan to be granted is frequently linked to the rank. Lenders often determine property values using numerous comparable values and grant only a certain percentage of that value as a loan, secured by a land charge.",[33,163,164],{},"Further claims in the form of loans that are secured by the land charge are then registered as subordinate. The order of registration determines the priority. Land charge registrations entered later are therefore considered subordinate. If there is a compulsory sale, creditors who are lower in the order of the land charge entries are paid in that same order.",[33,166,167],{},"For this reason most banks require the land charge to be in first rank. In addition, consent to enforcement (Zwangsvollstreckung) is often demanded with the land charge registration. This simplifies proceedings for banks should the customer experience payment difficulties. In this way the land charge is a secure and simple method for a lender to secure its claims. For this reason loans secured by a land charge are also granted more easily than unsecured personal loans.",[33,169,170],{},"Thus the land charge registration secures important contractual foundations for both parties. For the owner of a property, the land charge registration is a way to obtain a favorable, long-term loan due to the high creditworthiness conferred by ownership of the property. For the bank, the land charge secures rights to the collateral, i.e. the property. Many property buyers or builders are only given the possibility to proceed with their project if they arrange a land charge registration. There is a particular point to note especially for buyers of an existing property.",[33,172,173],{},"Because purchasing a property requires numerous steps, at the time of the land charge registration the previous owner is often still the legal owner. The new owner at that time actually does not yet have ownership rights, and therefore not the right to arrange a land charge registration. The purchase contract usually contains a power of attorney for the land charge registration so that several processes in the course of the property sale can run in parallel. In this way it is possible at the land registry office to enter both the new land charge and the new owner at the same time.",[33,175,176],{},"The land charge registration is therefore an important and central step when buying or building a property or when using one's own property as loan collateral.",{"title":178,"searchDepth":179,"depth":179,"links":180},"",2,[181,182,183,184,185,186],{"id":42,"depth":179,"text":10},{"id":64,"depth":179,"text":13},{"id":94,"depth":179,"text":16},{"id":105,"depth":179,"text":19},{"id":125,"depth":179,"text":22},{"id":155,"depth":179,"text":25},"From its meaning and distinction from a mortgage to the deletion of the land charge - MAXDA informs!","md",{"ctaHref":190,"ctaLabel":191,"image":178,"lead":187,"title":6},"\u002Fanfrage","Apply for your desired loan now",true,"en",{},"legacy-topic","\u002Fpages\u002Fen\u002Ftopics\u002Fland-charge-registration",{"title":6,"description":187},"Land charge registration: definition & process✔ Mortgage vs. land charge✔ Costs✔ Assignment & deletion✔ Learn more now!","Land charge registration - an overview. 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