Delete land charge: What to do after the loan repayment

Westphalian Chamber of Notaries. Once a real estate loan has been repaid in full, the bank issues a deletion permit. This step marks the successful repayment of the loan, but does not mean the end of the business relationship between the bank and the property owner. One important aspect often goes unnoticed: The land charge entered in the land register still exists.

Assign land charge?

Owners often deliberately neglect to submit the necessary deletion application. Contrary to popular advice, however, this is not advisable. The property owner initially saves money. The formally still existing Land charge can only be used to a limited extent, however. The assignment to another bank for refinancing, which used to be quite common, is often no longer accepted today. However, if the previous bank is to secure a new loan, there is nothing wrong with reusing the land charge.

What interested parties when buying a property you should be aware of, read here.

Why deletion is advisable

If the deletion permit cannot be found when the property is sold at a later date, it is possible to notarize the purchase contract. However, its execution will be considerably delayed. This is because the Land register registered bank usually issues a new deletion permit unbureaucratically, but not necessarily quickly. The delay then also affects the payment of the purchase price. If the bank no longer exists, the Kreditanstalt für Wiederaufbau KfW is responsible and will be contacted by the notary. Attention: The right to deletion may be time-barred.

To avoid taking any risks, property owners should visit a notary with the deletion authorization. The notary will arrange for the land charge to be deleted at the land registry.

If you would like advice on this topic from a notary in advance, you can find it on the Internet at https://notar.de/ the right contact person. You can also visit the online consumer portal of the Chamber of Notaries at https://ratgeber-notar.de/.