Interviewed by: Ramona Hammer-Opitz | Last update: January 2, 2021
note : 5/5
With this so-called land charge, you can protect yourself against a possible insolvency of the borrower. If the borrower can no longer repay the loan, then the bank has access to the property. Once the loan has been repaid, the land charge can be removed from the land register.
If you wish to have a registered land charge deleted, the notary must also present the land charge certificate to the land register in addition to the deletion permit. Please note: If the land charge certificate is no longer found, the land charge can only be canceled without a letter after a public tender procedure.
How much does deregistration from the land register cost?
A sum of 200,000 euros is registered in the cadastre. It is therefore necessary to reckon with costs of around 400 to 500 euros for the deletion.
Why does a mortgage make sense?
The bank uses the land charge as collateral for the home loan. It gives the financial institution the right to seize the property if the debtor does not pay the installments. Once the loan is repaid, the owner is finally master of his house.
Can a mortgage be canceled without a notary?
All that is required is a waiver statement and bank approval. The advantage: the land charge can be easily reactivated when a new loan is required – also without notary fees.
Canceling a mortgage is not enough! What should you do once you have repaid the loan?
18 related questions found
What happens if the land charge is not removed?
It is also possible to simply not remove the land charge from the land register. Once the house is paid off, unlike a mortgage, it can continue to be used. … In addition, the land charge can be passed on from bank to bank if, for example, you receive offers on better terms.
A discharge in the literal sense is not possible, since the property changes. Your husband should sell or transfer his co-ownership interest to you.
What does a registered mortgage mean?
A property or property is encumbered with a land charge. … He cannot sell the land or the house with a registered mortgage without the consent of the lender. Thanks to a mortgage, the lender also benefits from protection in the event of the insolvency of the borrower.
Why a higher mortgage than a loan?
These stipulate that the borrower has redeemed the land charge by repaying the loan. The bank that occupies the lower rank in the cadastre wishes to access the higher rank if the registered land charge no longer guarantees loans after repayment.
What is a mortgage on a house?
When financing real estate with a loan, the land charge plays a central role. The new owner and the bank or savings bank agree on a loan amount. Because the lender wants to protect himself, he has the notary register what is called the land charge in the land register.
Who pays for the deletion of the land register?
The registration of the new owner in the land register is at the expense of the purchaser. However, the seller bears the costs of striking off any land charge or mortgage that may be entered in the land register.
Who pays for the cancellation in the buyer’s or seller’s land register?
The seller only has to pay the costs of striking off the real estate liens from the land register. The amount is not calculated from the purchase price, but from the land charge.
How long does it take to clear a mortgage?
the cancellation permit itself is issued promptly. It kind of depends on how long it takes for the bank to verify that they can accept the deletion. The duration of the removal of the land charge depends on the respective land register and can take several weeks or even months in some federal states.
What happens to the land charge certificate after the land charge has been released?
If the missing land charge certificate has been officially declared invalid, the land charge can be removed from the land register. You can also carry out this procedure yourself to save notary fees, or have it carried out by a notary. The notary will then register the new owner in the land register.
Why are loan interest rates generally higher?
Because the bank lives by charging higher interest on money lent than it pays interest on money borrowed (savings deposits). And because you always have to reckon with a certain proportion of bad debts with loans. … But this interest rate is actually only granted to someone who does not need a loan at all.
What does mortgage interest mean?
The interest rate of the land charge is noted in the cadastre, which is always higher than that specified in the financing contract for your construction. … The interest on the land charge is about 15%. Typically, however, mortgage interest remains a paper figure that has no effect.
Why are mortgage interest rates so high?
Mortgage interest is usually around 15% and therefore significantly higher than loan interest. The reason why mortgage interest is so high is that the bank wants to financially cover foreclosure costs as well as unpaid interest.
Who can register a mortgage?
As long as the purchaser is not registered in the land register as owner, no land charge can be registered for him. The power of attorney issued by the seller makes this possible. The bank gives the borrower a warrant of pledge which he must submit to the notary.
When should a mortgage be registered?
Did you know: A land charge can only be entered in the land register after the final transfer of ownership. However, this only takes place after full payment of the purchase price. However, lenders only repay loans if there is collateral.