The land register for building loans

Every year thousands of households fulfill their dream of owning a home. The whole thing is realized as a house purchase or purchase of a condominium. Many families also simply build new ones. In addition to own funds, the building loan is usually used here.

At the latest in connection with the application for building finance, the client comes across the land register and department I-III. What exactly is marked here? Who keeps the land register?And why are departments I-III so important in the land register?

The land register – more than a simple register

The land register - more than a simple register

Forerunners of today’s land register can already be found in the Middle Ages, some documents date from even earlier times. The idea behind this is to precisely grasp real estate in its extent and the ownership structure.

In the end, the land register is a directory to:

  • Ownership
  • Loads and restrictions as well
  • Mortgages,

that affect a property. To make the land register clearly structured and legible, the copy has been established in the departments I-III. Each of the individual departments has its own purpose.

What is in the land register?

What is in the land register?

The main task of the land register is to record and archive all relevant data on a property. In this context, several issues must be recorded that are assigned to the individual departments.

Department I records all information on the ownership structure. Here, among other things, the name of the owner, the reason for registration and the number of the property are noted.

Section II shows all the burdens and restrictions (except the mortgages) with which the property in question is provided. These can include:

  • Housing and usage rights
  • Usufructuary rights
  • Sales rights or
  • Leasehold

his. In addition to noting the charges, deletions are also noted in the land registers.

The department relevant for the building loan is III. Information on mortgages – i.e. mortgages or land charges – is recorded here. By the way, the ranking is of crucial importance, since subordinate rights can sometimes not be satisfied through enforcement.

Land register entry and mortgage lending

The departments I-III in their entirety make up the land register. Department III is really important for the building loan.

Since banks generally have an interest in first-class collateral for mortgage lending, prime mortgages are required. In the course of the loan application, banks therefore require inspection of the land registers. And financing only comes about if everything fits.