What is it about?
Almost every financed property has a land charge (Grundschuld) entered in Section III of the land register (Grundbuch). For the buyer to receive the property free of encumbrances as agreed, this land charge must be deleted – and for this, the notary requires the bank's consent to deletion.
Many sellers underestimate the time required. The bank will only issue the documents once the redemption amount and escrow conditions have been clarified. Initiating this too late will delay the due date of the purchase price and thus the entire completion.
Definition and meaning
The consent to deletion is the formal declaration from the chargee (the bank) that it agrees to the deletion of its right in the land register. It is usually transmitted to the notary in trust, linked to conditions (e.g. payment of the redemption amount).
It is important to distinguish: The land charge is an abstract security right for a nominal amount; the actual outstanding loan amount can be significantly lower. The right is deleted, the loan is repaid.
Why it matters
The buyer and their bank almost always insist on unencumbered ownership. Without the consent to deletion, the notary usually cannot make the purchase price due (in full), because the agreed release from encumbrances is not secured.
The declaration also ensures that a portion of the purchase price flows directly to the seller's bank to repay the remaining loan and the remainder to the seller – a clearly separated payment flow.
The key sections
You should know and check these components:
Description of the Land Charge
Precise details of the land charge/mortgage to be deleted, including amount, section, and sequential number in the land register.
Declaration of Deletion or Release
The actual consent to deletion, or a partial release if applicable, if only part is affected.
Escrow Conditions
Conditions under which the notary may use the declaration – primarily, the receipt of the redemption amount.
Redemption Amount and Deadline
The amount required for full repayment and until when it is valid (outstanding balance on a specific date).
Recipient
Usually the notary's office; sometimes directly the land registry. The payment method is clearly defined.
Example
Deletion Process – The Figures
A seller has almost paid off their loan. A look at the nominal amount and the outstanding debt shows why these two figures must not be confused.
Land Charge (Nominal Amount)
250.000 €
The amount entered in the land register – not the sum still owed to the bank.
Current Outstanding Debt
170.000 €
Only this amount actually needs to be repaid; the remainder of the purchase price goes to the seller.
Escrow Condition
Deletion only after receipt of payment
The notary may only use the consent once the redemption amount has been received by the bank.
Recipient
Notary's Office
The bank sends the documents in trust to the notary, not to the seller.
Who signs? Can a power of attorney be enough?
Responsibility and signature
The financing (seller's) bank issues the consent to deletion. It is requested and used in the execution by the notary; the seller initiates the process and provides the necessary data.
The bank or its authorised representative issues and signs the consent (increasingly also electronically). The seller usually only signs the associated redemption and escrow releases with their bank.
Power of attorney and its scope
We can coordinate the request and monitor deadlines, but the bank only accepts its own security and legitimation requirements. A broker's power of attorney does not replace a bank power of attorney; sensitive account data remains with the client.
For coordination, a power of attorney for "communication with the financing bank regarding the repayment and deletion of the land charge" is sufficient. The bank usually requires the actual redemption and release declaration directly from the borrower.
Do it yourself: step by step
- 1
Inform your own bank early about the intention to sell.
- 2
Retrieve the loan numbers and the land register (Grundbuch) data for the land charge (Grundschuld).
- 3
Request the outstanding debt, redemption amount, and any potential early repayment penalty in writing.
- 4
Specify the notary as the recipient of the documents.
- 5
Keep an eye on deadlines and the settlement date, and coordinate them with the notary appointment.
Your easy way
Or we take care of it for you
- We inquire early on about what data the bank requires and remind you of deadlines.
- We coordinate the fiduciary transfer to the notary.
- We explain clearly which part of the purchase price is used for redemption and which is paid to you.
- We coordinate the schedule with the bank, notary, and buyer.
Important caveats
- The nominal amount of the land charge and the actual outstanding debt are not the same.
- The bank only provides the necessary documents after fiduciary conditions have been clarified – this takes time.
- An early repayment penalty can significantly reduce the sales proceeds.
- Without timely deletion documents, the due date for the purchase price will be delayed.
Common mistakes
- Only speak with the bank after notarisation.
- Do not assume the nominal amount of the land charge is the outstanding debt to be paid.
- Do not factor the early repayment penalty into the sales proceeds.
- Do not have the documents sent to yourself instead of the notary.
Frequently asked questions
- Do I have to redeem my loan before selling?
- Not in advance from your own pocket. Typically, a portion of the purchase price is transferred directly to your bank for redemption via the notary.
- What is an early repayment penalty?
- A compensation that the bank can demand for early loan redemption. You should inquire about its amount early, as it reduces the proceeds.
- Can the land charge (Grundschuld) also remain?
- In some cases, the buyer takes over a land charge. This is the exception and must be explicitly agreed upon and supported by all parties involved.
- How do I obtain the cancellation certificate (Löschungsbewilligung) for the land charge?
- Once the loan has been repaid, the bank issues it upon request. When selling with an outstanding loan, the notary requests it; the bank hands it over on condition that the buyer pays the outstanding amount directly to them. The notary then arranges for the cancellation in the land register.
Note: this article provides general orientation and does not replace legal, tax or financing advice in individual cases. The legal position and authority practice may change. Binding information is provided by a notary, the authority, the bank or a specialist lawyer.