The German land charge: security behind your mortgage

The loan and its security are separate layers

The loan agreement governs borrowing, interest and repayment. The land charge is registered as security in the land register. A separate security agreement determines how the lender may use it. Make sure you understand the liabilities it covers.

Questions before signing

• Which liabilities does the security agreement cover?
• What are the costs of creating, registering and later changing the charge?
• Which documents and participation does the notary need?
• What must be in place before the lender releases funds?

After the loan is repaid

A land charge does not automatically disappear from the register when the loan has been paid off. Whether it should be deleted, retained for future borrowing or transferred needs to be considered individually. Deletion requires the necessary declarations and land register steps.

When changing lenders

Security may sometimes be transferred for remortgaging. The banks and notary need to establish whether this is possible and cheaper than deletion and a new charge. Include these costs when comparing offers.

Frequently asked questions