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A Release of Mortgage (Löschungsbewilligung) is the official document a lender provides when you've fully paid off your mortgage in Germany. It proves that you've satisfied all your loan obligations and removes the bank's claim on your property in the land registry (Grundbuch).

Getting this release is a crucial final step in German property ownership. Once you receive it, you'll need to have a notary submit it to the local land registry office (Grundbuchamt) to clear the mortgage entry completely. This process follows the strict requirements of the German Civil Code (BGB) and ensures your property is free from any lending-related encumbrances.

You need a Release of Mortgage (Löschungsbewilligung) when you've finished paying off your German property loan. This document becomes essential in several situations: selling your property, refinancing with a different bank, or simply wanting to clear your property title of any lending claims in the Grundbuch (land registry).

Time is critical when requesting this release from your bank. For property sales, German notaries require it before closing. For refinancing, your new lender needs proof that the old mortgage will be removed. Getting this document early helps avoid delays, as German land registry offices can take several weeks to process the official removal of mortgage entries.

• Standard Release (Standardlöschungsbewilligung): The most common type, used for full mortgage payoffs, signed by the bank and notarized
• Partial Release (Teillöschungsbewilligung): Used when releasing only a portion of the mortgaged property or one of multiple mortgage entries
• Conditional Release (Bedingte Löschungsbewilligung): The bank provides this before final payment, becoming valid only after receiving the agreed payoff amount
• Priority Release (Rangrücktrittserklärung): Not a full release but allows a new mortgage to take priority over an existing one, common in refinancing

• Lending Banks: Create and issue the Release of Mortgage after confirming full loan repayment, must have authorized signatories validate the document
• Property Owners: Request and receive the release document, coordinate with notaries for processing
• Notaries: Authenticate signatures, submit the release to the land registry, and ensure compliance with German property law
• Land Registry Officials: Process the release and update the Grundbuch to remove the mortgage entry
• Real Estate Agents: Often coordinate the release process during property sales to ensure smooth transactions

• Loan Details: Gather the original mortgage amount, registration date, and land registry reference number (Grundbuch details)
• Property Information: Collect exact property address, parcel number, and current ownership details from the Grundbuch
• Bank Authorization: Ensure proper bank officials are available to sign, with their authority documented
• Payment Verification: Have proof of final mortgage payment ready for reference
• Notary Coordination: Schedule appointment with a German notary who will authenticate the release
• Document Generation: Use our platform to create a legally compliant Release of Mortgage that meets German land registry requirements

• Property Identification: Full legal description, land registry details, and exact mortgage entry reference
• Lender Declaration: Clear statement confirming full loan satisfaction and consent to remove the mortgage
• Authorization Details: Bank's legal name, authorized signatories, and their official capacities
• Original Mortgage Data: Reference to initial mortgage amount, registration date, and entry number
• Property Owner Info: Current owner's full legal name and address as registered in Grundbuch
• Notarization Block: Space for notary's official seal, signature, and verification statement
• Legal Compliance: Reference to relevant sections of German Civil Code (BGB) governing mortgage releases

A Release of Mortgage (Löschungsbewilligung) differs significantly from a Mortgage Agreement (Grundpfandbestellungsurkunde) in German property law. While both documents relate to property financing, they serve opposite purposes in the lifecycle of a mortgage.

• Timing and Purpose: A Mortgage Agreement creates the initial lien at the start of the loan, while a Release of Mortgage terminates it after full repayment
• Legal Effect: The Mortgage Agreement establishes the bank's security interest in the property, but the Release removes this claim from the land registry
• Documentation Requirements: Mortgage Agreements need extensive financial details and property assessments, while Releases focus on confirming loan satisfaction and identifying the entry to be removed
• Processing Steps: Mortgage Agreements require thorough review and risk assessment, whereas Releases mainly need verification of payment completion and proper authorization