Have you paid back your real estate loan in full? Then you are entitled to have the corresponding mortgages or land charges cancelled free of charge. Banks are legally obliged to issue a cancellation permit without charging any additional fees.
Cancellation of mortgage and land charge: What you should know
- OLG KölnJudgment of 28 February 2001 – 13 U 95/00, legally binding
Free cancellation of mortgages and land charges
Have you paid back your real estate loan in full? Then you are entitled to have the corresponding mortgages or land charges cancelled free of charge. Banks are legally obliged to issue a cancellation permit without charging any additional fees.
What does that mean exactly?
- No additional fees: The bank may not charge a separate fee for issuing the cancellation authorization.
- Exception: Notary fees: You only have to pay the costs for a notarial certification of the cancellation authorization. However, these can also be covered by the bank. (BGH ruling of 7 May 1991 – XI ZR 244/90)
- No main service: The cancellation of the mortgage is not an additional service for which the bank could demand compensation.
- Certification: Both notaries and credit institutions themselves can certify the cancellation authorization.
- Stamp duties: An additional “stamp fee” for certification by the credit institution is not permitted.
- Land registry fees: In addition to the notary fees, there are also fees for entering the deletion in the land register.
Why is deletion important?
As a consumer, you have the right to a quick and uncomplicated cancellation of the mortgage after the loan has been fully repaid. Make sure that the bank fulfills its legal obligations and does not charge any unjustified costs.
Summary:
You have the right to have mortgages and land charges cancelled free of charge after the loan has been fully repaid. Do not let the bank charge you unjustified costs and assert your rights.
If you have any questions or problems with the cancellation of the mortgage, please contact your bank or a consumer advice center.
