The land register extract: Why it is important when selling property
The land register extract plays a central role in the sale of a property. It provides information about the ownership structure, rights and encumbrances as well as mortgages associated with the property. But what exactly does the land register extract say and why is it so important for the sales process?
The three parts of the land register extract
- Division 1: Details of the owner of the property or land.
- Division 2: Rights and encumbrances, e.g. rights of residence or rights of way.
- Division 3: Mortgage liens, usually mortgages, which are registered as security by financing banks.
Who can apply for an extract from the land register?
The land register is kept at the competent local court and only persons with a legitimate interest may request an extract. These include
- Owner of the property.
- Notaries who draw up the purchase contract.
- Banks that finance a property loan.
Prospective buyers cannot make a direct application, but will receive the necessary information from the owner or notary.
Why is the land register extract so important?
The land register extract is indispensable for two reasons:
- For the preparation of the purchase contract: Notaries require the extract in order to include all relevant data in the contract.
- For inspection by the buyer: Buyers want to ensure that no value-reducing rights or encumbrances are registered.
Important: The land register extract should not be older than a few weeks to ensure up-to-date information. The fees are 10 euros for an uncertified copy and 20 euros for a certified copy.
Paid-off mortgages: act early
A property is often paid off, but the mortgage is still entered in the land register. A sale is not possible without cancelling this entry. The following steps are necessary:
- Contact the financing bank.
- Commissioning of a notary by the bank to cancel the mortgage.
- Allow for a processing time of several weeks.
It is therefore advisable to obtain the land register extract in good time and to have the land register sheet corrected before the start of the sale.
Land register extract for the buyer
Buyers also need an extract from the land register in order to apply for a property loan from their bank. Incidentally, a property that has not yet been paid off can also be sold - a common scenario with divorce properties.
Conclusion: Prepare the land register extract in good time
The land register extract is indispensable for a successful and smooth property sale. Early preparation saves time and ensures a smooth process.
Get non-binding advice now
Robert Schüßler
Property valuer (EIA and IHK)
Note: This text is for information purposes only and does not constitute legal or tax advice. Please consult an expert if you have individual questions.
