What’s a book mortgage?

The term book land charge will interest you if you are interested in real estate or construction financing. This land charge is entered exclusively in the land register at the local court in which proof of loan indebtedness is kept. You want to know what it has to do with this term in connection with a construction loan. If you are planning a project for the construction or purchase of a property and do not have enough money to buy it, you will also look at financing through a loan or comparable loan. To secure this loan, the bank will then enter a land charge in your land register entry in section III of the land register according to the amount of the loan.

Security is associated with the term book mortgage

You will know for yourself that the term security and reliability is closely related to the subject of credit and loans. As a security, a bank pays its loan that it grants when buying or building a property entered in the land register. Here also other loans can be registered and the amount of the loans knows a load limit. You need to know that banks register a land charge up to a limit of 80% of the value of the property. You can arrange this entry yourself, the bank can arrange this and banks also secure other claims via a book land charge. Not only banks secure their credits and loans, but in the land register can be registered as land charge other claims, which do not necessarily have to be loans. For example, in the case of an inheritance or the formation of a community of heirs, book land debts are usually also entered in the land register of a property. Inspection of a book mortgage may only be carried out by authorized persons who have an interest in of the property or related to the loans.

The actual registration of the book mortgage

The registrations in a land register to a property or building, cannot be made simply by everyone. The actual registration is carried out by the land registry office, which is located at a competent local court. The land or property is always kept in a judicial district and here each plot is recorded with a land register entry. There are no manless properties. For further understanding and explanation, there is also the term “Briefgrundschuld”. However, there are different types of land charges, such as the actual book land charge, in which an owner of a property or a plot of land assigns the claims in rem to the lender via this registration. If there are payment delays and no installments for a loan, then the lender has already acquired ownership of the property or land. The situation is different with the letter land charge, where only the loan is described, but the property is not transferred. Entries of the book land charge are liable to costs and usually the buyer of a real estate takes over these costs. In times of digitization, today’s book mortgage claims are also digitally viewable and these debtor directories are even publicly accessible. In order to explain to you exactly once the reference to this term, you should know the sentence, the lending bank secures itself with the book land charge against default of payment of the credit. So if you buy a piece of land or real estate with the help of a loan, the bank will have this corresponding land charge entered in the land register. You will then also pay the costs for this registration and if one day you have paid back the loan, then you will have to You apply for the deletion and the bank will grant you a deletion authorisation. Here, too, you will have to bear the costs for the deletion in the form of fees.