The land register is in fact the identity card of each property. The land register is kept at the local land registry office in the district court. Each land register also includes the basic file, which is also kept at the Land Registry. Anyone planning the acquisition of a property or land will sooner or later encounter the land register of the property or land. But what exactly is it with the land register?
Who can see the land register?
In contrast to the commercial register or the register of associations, the land register is reserved for a certain group of persons. However, as the legitimate interest looks in detail, is not explained in more detail:
“The inspection of the land register is permitted to anyone who sets out a legitimate interest. The same applies to documents referred to in the Land Registry for the purpose of supplementing an entry, as well as entries which have not yet been completed. ”
From the definitions listed, it is quite clear that a visit to the Land Registry is out of pure curiosity. Anyone who just wants to see who owns a certain property, has no chance with this project.
Also, the planned acquisition of a property initially does not require legitimate interest. In this case, inspection is usually carried out by a notary or his employees. But there may also be exceptions, as the land registries, as mentioned, also subjectively judge.
For example, the submission of a bill of sale draft or the power of attorney of the owner may allow for an inspection of the claimant. Private persons, insofar as they do not belong to the group of persons listed above, therefore have no right to inspect the land register.
Reasons for restricting the land register
The section III of the land register contains very personal information of the owner. Here is noted, how high potential liabilities on the object fail, so give information about the financial circumstances of the owner. These are not in the public interest, on the contrary. Banks may also give no information about the securities deposit of the neighbor.
The electronic land register
Digitization has not stopped at the land register. All federal states now offer electronic land register access via the Internet. However, here again the “legitimate interest”, which must be proven in advance.
For this purpose, the judicial authorities of the Länder have filed the necessary forms as part of their online presence.
For the limited retrieval process for “legitimate” interest fall setup fees in the amount of 50 $, for each inspection eight USD (Fee Regulation Land Hesse, Nov. 2016).
The structure of the land register
The land register is not an arbitrary accumulation of information about the object in question, but a clearly structured collection of information and facts about the legal situation of the building or the land. The land register enjoys according to paragraph. Translated, this sentence means what is in the land register, is considered to be bona fide third parties as absolute. The legislator distinguishes between positive and negative publicity.
- Positive publicity means that what is registered in the land register applies.
- Negative publicity means that cases subject to registration but not registered are considered non-existent.
An exception applies if an incorrect entry was known to the person who inspects or if an objection to the correctness of the land register has been registered.
The land register consists of five parts:
- Division I, II and III
- Founding Act
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It is the task of the notary to inspect the land register. Not everyone is allowed to look into the land register without further ado; there must be a legitimate interest. A legitimate interest in addition to notaries and appraisers and experts. As a buyer you usually do not authorize the notary himself, but notary assistants with the inspection. It is not possible to go to the land registry, and to look purely out of interest.
The sequence of the owners shows that the spouses acquired the object from the housing company. In Division I, the ownership of several buyers among themselves, here each half, noted. Changes in the land register are continued on an ongoing basis, an underlining states that the underlined fact no longer has validity.
The statement states that the change of ownership was completed. With the logging of the purchase contract, the notary applies for the priority order. With this reservation, the land register is locked, it can no longer be made changes.
In Division II, the notary examines when viewing whether there are loads and restrictions on the property. If, for example, a right of first refusal has been registered for the municipality and the seller has concealed this, this situation now comes to light. But it can also be entered a right of way or a right of residence. For the buyer, it is important that he knows all the burdens and limitations in order to possibly prevent a rude awakening at a later date.
The land register extracts are an essential part of the logging, as the inscription, inventory and department I are included in the sales contract. As already mentioned, the priority is given after logging. However, in order for the actual disclosure, the entry of the new owner, to be made in the land register, the land registry office must have the certificate of immunity of the acquirer available to the local tax office.
In turn, this will not be issued to the buyer until the land transfer tax has been recorded at the finance office. Here it means, as soon as possible after the Notartermin to execute the payment. Without a clearance certificate, no changes are made in the land register, so no mortgages are entered. Without this entry, the bank does not pay the loan, the seller does not get his money, default interest is due – there is a hurry to pay the land transfer tax.
Who buys a property, quickly has a new pen pal – the land registry. Any change, notice of default, deletions, omissions, entries of any kind will be sent to the buyer by post as copies of the land register excerpts – each with a remittance slip, as each act costs money.
By leaving, you are finally the new owner. However, it takes until this final administrative act is performed. Against this background, the release is recorded together with the purchase contract by the notary, as the Land Registry needs a certified instrument on the change of ownership. A change of ownership in real estate purely by handshake is not possible in Germany.
The financing and the land register
If you take out a loan from a bank to pay for the newly purchased property, the bank will ask for security. In the case of mortgage lending, this is a so-called real security, ie a mortgage or mortgage. This security is noted in Division III of the Land Registry, exclusively there. In addition to the amount to be secured, you will also find all other necessary information about the collateral.
Mortgage or mortgage?
While the mortgage is strictly linked to financing, a mortgage may be entered in the land register completely separate from any claim. Strictly speaking, the mortgage would have to be reduced with each repayment amount by the borrower. Unlike the mortgage, the mortgage is completely abstract.
It may well be that a borrower for a loan in the amount of 50,000 USD, a mortgage over 100,000 USD register. In this case, he can refinance at any time, without the need for a renewed land charge order.
The order in which the mortgages are entered determines the order in which the creditors are serviced in the case of a foreclosure sale. Mortgage lenders must always be ranked first. For all other entries is then the subject of subordination.
If you finance 80 percent of the purchase price through your house bank, 60 percent can be financed through a mortgage bank. As part of a subordinated loan (1a and 1b mortgage), the house bank takes over the remaining 20 percent against an interest charge. The house bank itself is then subordinated in the land register, in second place.
Prerequisite for the entry
For a mortgage can be registered, it requires a land charge order. This must also be certified by a notary. Only with the presentation of this deed can the Land Registry register the land charge. The entry and the cancellation of a mortgage are, it is surprising, for a fee. What happens if your fixed interest period has expired and you want to finance it with another bank?
Theoretically, in this case, you would have to apply for a lien cancellation and order a new mortgage for the new bank. However, the banks have agreed that a notarized transfer is sufficient. This costs only a fraction of what you would have to pay for the deletion and reappointment.
The question of costs is also a reason why many property owners change the mortgage to a so-called owner’s land charge after paying off the financing. This mortgage remains in the land register and can revive at any time.