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The Mortgage Loan Assumption Agreement is utilized when a new party wishes to take over the existing mortgage obligations of a current borrower in Germany. This document is essential in situations such as property transfers, business restructuring, or family wealth transfers where the original borrower's obligations need to be transferred while maintaining the existing mortgage structure. The agreement must comply with German banking regulations, property laws, and consumer protection requirements. It includes comprehensive details about the loan terms, property description, rights and obligations of all parties, and necessary land register updates. The document serves as the primary instrument for documenting the assumption of mortgage debt while ensuring all regulatory requirements under German law are met. The Mortgage Loan Assumption Agreement is particularly important as it helps avoid the need for a completely new mortgage arrangement, potentially saving time and costs while maintaining the existing security structure.

1. Parties: Identification of all parties: Original Borrower (Transferor), Assuming Party (Transferee), and Lender (Bank/Financial Institution)

2. Background: Details of the original mortgage loan, property description, and circumstances leading to the assumption

3. Definitions: Key terms used throughout the agreement, including loan-specific terminology and property-related definitions

4. Loan Assumption: Core terms of the assumption, including loan balance, interest rate, and payment terms being assumed

5. Property Details: Detailed description of the mortgaged property and its current registration details in the land register (Grundbuch)

6. Transfer of Rights and Obligations: Specific provisions regarding the transfer of all loan obligations from original borrower to assuming party

7. Continuing Security: Confirmation that existing mortgage security remains in effect and provisions for updating land register

8. Representations and Warranties: Statements from all parties regarding their capacity, authority, and financial condition

9. Payment Terms: Detailed payment obligations, including payment schedule, method, and late payment provisions

10. Default and Remedies: Consequences of default and lender's enforcement rights

11. Notices: Communication requirements and contact details for all parties

12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes