“The Ultimate Resource for Tax Advice in Germany: Comprehensive Guide and Resources”

Book 3 – Property Law

Section 7 – Mortgage, Mortgage, Annuity Debt

Title 1 – Mortgage

§ 1177 BGB owner land charge, owner mortgage

(1) If the mortgage is combined with property in a person without the owner also being entitled to the claim, the mortgage is transformed into a land charge. With regard to interest, the interest rate, the payment period, the termination and the place of payment, the provisions made for the claim remain decisive.

(2) If the owner is also entitled to the claim, his rights under the mortgage shall be determined, as long as the association exists, according to the provisions applicable to a land charge by the owner.