The Land Register (Grundbuch) is a public register kept at the local court (Amtsgericht) that documents ownership and encumbrances of land parcels. Every parcel of land in Germany has its own land register sheet. A property purchase is only legally completed once it has been entered in the Land Register.
Structure of the Land Register
Part
Content
Heading
Local court, land register district, sheet number
Property description
Parcel number, location, area, type of use
Section I
Owner: name, date of birth, share
Section II
Encumbrances: right of way, right of residence, usufruct, right of first refusal, priority notice of conveyance
Right of way: a neighbour may cross the property. Can reduce value.
Right of residence: a person may live there for life – even after a sale. Strongly reduces value.
Usufruct: goes further than a right of residence – the person may also let the property and keep the rental income.
Right of first refusal: a municipality or person has the right to buy first.
Priority notice of conveyance: protects the buyer during the purchase process until the final registration.
Land Charge vs. Mortgage
Feature
Land charge
Mortgage
Dependency
Independent of the loan
Expires with the loan
Prevalence
Bank standard
Rare
Deletion
Must be applied for
Automatic
Tip: Don’t delete a land charge immediately after repayment – it can be reused free of charge for later refinancing.
Requesting a Land Register Extract
Relevant local court (in person or by post)
Online: grundbuch-portal.de (in many federal states)
Via the notary during the purchase contract
Type
Cost
Simple copy
Approx. €10
Certified copy
Approx. €20
Order of Priority in the Land Register
Whoever is registered earlier has priority. In foreclosure auctions, creditors are satisfied in the order of their registration. First-ranking land charges held by the bank are always satisfied first.
