The Mortgage and What You Should Know
The Mortgage is an aid in securing credit. The pledge is either a property directly or a right granted to a property. In the more recent legal concept, real estate is not only treated as developed and undeveloped land, but a similar lien on a property exists, for example, in ships. Instead of the land register, the liens on ships are entered in the ship register, whereby the procedure and the rights derived therefrom are identical to the lien on a property with or without development.
The legal distinctions in the land lease
Real estate lien three different variants. This includes the mortgage, to which the legal basis is found from the paragraph 1113 BGB. The mortgage is also a possible variant. It is governed in the Civil Code from the 1191 paragraph. The regulations on the annuity debt as a third form can be read from paragraph 1199 BGB.
All three forms have in common that a right of realization on the part of the creditor derives from this mortgage. If a borrower fails to meet his payment obligations under a loan agreement, the lender may, after an unsuccessful dunning run, initiate a foreclosure sale to satisfy his legitimate claims. The basis is the entries that are made after a notarised authentication in the land register or in the ship register.
The peculiarities of the mortgage as a real estate lien
The mortgage can only be entered in the land register in connection with a specific claim. Therefore, the related loan is also referred to as Mortgage Loan or Mortgage Loan . How high a mortgage can be depends on the market value of a property. Here the data are used, which are determined by the expert committees on the basis of real sales of similar objects. The banks take a discount to calculate the mortgage lending value. As a rule, the mortgage lending value accepted by the banks for a mortgage loan is up to 80% of the market value.
A peculiarity of the mortgage is that the entry in the land register will not be canceled until the lender has given its approval can. For this purpose, a so-called cancellation authorization is required. With the submission of the cancellation permit at the Land Registry Office, a conversion of a registered mortgage into a landlord's land charge is possible.
What characterizes the mortgage?
A mortgage may be entered in Germany both with and without reference to a specific claim of a third party. It also grants the beneficiary the right to recovery in the event of default of payments. The registration takes place in Department II of the land register. The landowner thus makes a commitment, in the event of a default of his payments, to allow for recovery through foreclosure. This land charge is permissible both as a registered land charge and as a land charge in Germany.
A special form of land charge as a land charge is the landlord's land charge. Here, the owner of a property becomes a & quot; creditor & quot; entered. Third parties are not involved in this registration. The value of an owner's land charge can include sums up to the market value. The registration of a landlord mortgage as a land charge is often referred to as a & quot; placeholder & quot; For example, if a smaller loan needs to be completed before major funding. The reason for this procedure is that the order of satisfaction of the claims depends on the order of entries in the land register. Therefore, the first rank should always be secured for the most extensive loan because this is rewarded by banks with cheaper interest rates. The conversion of a landlord's mortgage into a mortgage is possible at any time.
The Pension Debt as a Special Lien
A pension debt as a land charge is used when a third party is granted the right to regular recurring payments. It does not have to be in conjunction with a loan. This approach is also possible in the case of community of heirs, where continued use of the property is only possible through an heir. If the user can not immediately pay the co-heirs, a compensation for a pension debt in their favor would be a viable alternative.
A peculiarity of the land charge in the form of the Pension Debt is that the property owner has a one-off Payment of further obligations & quot; free cash & ldquo; can. However, a notice period must be observed, which is individually regulated in the contract. In most cases, it covers a period of six months. If the creditor wishes to hedge against the triggering with a one-time payment, a real-life lien may be entered in addition to the pension debt in the land register. The legal regulations for this entry can be found in the Civil Code section of the Civil Code from the paragraph 1105.
Artikelbild: © Alexander Raths / Shutterstock