The land register entry documents the ownership structure of a property. We explain what the land register actually is, how you can change an entry and what costs you will incur.
It’s actually a simple business: an owner sells his property and hands it over to the new owner. But how can an owner prove that he really owns the property or the house? The answer is simple: with the help of the land register.
We explain to you what exactly is behind it, what the difference is between a land register extract and a land register entry, how you can change such an entry yourself – and what costs you have to reckon with.
What is a land register?
The Land register is a official directoryin which all Land, Traffic areas and standing on them building of a specific district are documented. Documentation takes place via Land register entries.
According to the land register regulations (GBO), each property has a special page in the land register, the so-called Land register sheet. Land registers are kept at the local court; they are also available in electronic form.
What is a land register entry?
A Land register entry is kind of that Identification of a property. It states in a legally binding manner who owns a property and, if applicable, a property on it and whether anyone else has claims on it. In the land register entry are for example Gifts, Purchases, Inheritance claims or Foreclosures held. Or in short: Ownership and charges.
What is in the land register entry?
Each land register consists of one Inventory and three departments (Areas). The inventory includes a description of the property. In the case of properties, this includes information on the location, size and development.
If necessary, certain rights associated with the property are also entered. So-called Easements such as rights of way or sewerage rights, but also rights of residence and rights of use.
The first department: owners
The first section lists who owns the property or property. If there are several owners, for example in the case of married couples, they will too Ownership indicated – so about “half of each”.
Since land register entries are never completely deleted over time, but are always marked as no longer valid, you can also read the history of a property from them. There is always a for new entries Uses necessary.
Important: If you want to buy a plot of land or a house, you should check whether the seller is really entered in the land register as the owner. You should also make sure that there are no other owners.
The second section: rights, encumbrances and restrictions
All can be found in the second section Rights, Burdens, and Restrictions. The skill Rights of way of a property neighbor his or gas, water or power lines running in the corresponding property. The new owners accept these agreements and have to tolerate them – they are entered in the land register as the right of the respective energy provider, the municipality or the neighbors.
Also possible Preemption or Housing Rights are noted in the second section. The same applies to information about ongoing insolvency proceedings. Here the district court also notes whether the property is part of an execution of a will. Is there a Post-inheritance note, it means that the subsequent heir must agree to the sale.
You should pay particular attention to whether a so-called Remediation note is registered. This is the case if the property is in a redevelopment area – and it can be expensive if the city involves you in the work.
If you are buying a plot of land or a property, the so-called section appears in the second section of the land register Notice of conveyance registered. The notary will arrange this entry after you have signed the sales contract. You are through it Marked as buyer.
The notice of conveyance is a security for you as the buyer, so that the property or the property is not sold several times – it blocks the entry in the land register. But be careful: Both of these are only owned if the entry in the land register has been changed accordingly in the first section.
The third division: land charges and mortgages
The third section of the land register regulates the so-called Real estate liens of a property. Everyone is there Debt that weighs down on a property, but also the Purchase price, monthly Guess and Payment deadlines. A distinction is made between debts Land charge and mortgage.
What is the land charge?
The land charge serves as your bank securityso that you get your money back even if you should no longer be able to pay off your building loan. Then the bank is allowed to use your property foreclosure auction and thus receives back the outstanding loan amount plus interest. For you as a buyer, the mortgage means that you can even take out a home loan.
This variant is the classic foreign land charge. You have registered the land charge as collateral in favor of the bank. However, if your loan is fully paid off, the land charge no longer belongs to the bank, but to you as the owner.
The bank then no longer has any rights to the property. You can freely arise whether you want the Delete or receive land charge from the land register want. The latter is interesting for you if you need a new loan soon – for a modernization, for example. Then you already have security for that.
If you want to delete the land charge, the relevant point is simply underlined in red. This means that deleted entries can also be traced later.
Difference to the mortgage
The essential one Difference Between Land Charge and Mortgage consists in the fact that the land charge always remains the same – namely the amount of the loan amount.
A mortgage however, it shrinks with every installment you pay the bank and eventually expires automatically, as soon as the loan is paid in full. Because the land charge is easier for banks to handle in the event of over-indebtedness, it has prevailed in practice.
- Example: You take out a building loan of 250,000 euros. At the beginning, both the land charge and the mortgage are 250,000 euros. If you now pay off 1,000 euros from this loan every month, the mortgage will decrease by 1,000 euros month by month. If you continue to do this, you will be debt free in less than 21 years; Your mortgage will then be 0 euros and will be automatically deleted. Your land charge, however, is still 250,000 euros. Only now it no longer belongs to the bank, but to yourself.
As a prospective buyer, you can draw important conclusions from the third section. If, for example, you only find a canceled land charge in the land register with which the previous owner financed the property, this can be an indication that that he hasn’t modernized too much. Because many owners cannot do both out of their own pockets.
What does an entry in the land register cost?
The Costs for a land registry entry result from the Court and Notary Fees Act (GNotKG). As a guideline you can for notary and land register entry together with about 1.5 percent of the purchase price of the property or the property. About 1 percent goes to the notary and the remaining 0.5 percent to the land registry.
- Example: If you want to buy a property for 300,000 euros, this would mean land registry costs of 4,500 euros. Of this, 3,375 euros would go to the notary and the remaining 1,125 euros to the land registry.
Where can I see the land register?
In principle, you can use the land register in the district court of the municipality or online on the relevant country portal about the so-called Land register extract see. However, you cannot just look at the data on demand, you have to Request for inspection put. For data protection reasons, however, you will only receive approval if you have a legitimate interest to have. This is to prevent real estate owners from being investigated.
You can demonstrate a legitimate interest, for example, with a Power of attorney from the owner occupy. You can also have the whole thing run through the notary. He then requests the land register extract from the land registry if you have instructed him to draw up a sales contract.
When do you have to change a land register entry?
A land register entry must always be changed if a Purchase contract is present and the Change ownership. But also Changes in funding can make that necessary.
For example, if a borrower changes bank and owes his loan, the land registry usually deletes the old mortgage and registers the new one.
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