Your Real Estate Lawyers

Efficiency, entrepreneurial thinking and our clients success are our top priorities.

Erfahrungen & Bewertungen zu JASPER Rechtsanwälte

Banking law

The term banking law is not uniformly defined. Objects of banking law are payments, money and currencies. Banking law as an overarching term is composed of parts of public and private commercial law. When advising JR on banking law, the focus is not so much on public banking law, which concerns the state supervision of the credit and financial services sector. Rather, JR focuses its advice on those areas that are related to private commercial law. Contact persons are usually banks and financial service providers who deal with the issuance of loans, securities, i.e. the financing of real estate issues. The main legal bases of private banking law are the German Civil Code (BGB), the German Commercial Code (HGB), the German Deposit Act (DepotG), the Stock Exchange Act (BörsG), the Consumer Credit Act (VerbrKrG), the Bill of Exchange Act (WG), the Cheque Act (ScheckG) and other laws.

Financial Instruments

Financial Instruments

The purchase of real estate is usually financed by bank loans. For this purpose, a business relationship is entered into with a bank, which entails a number of content regulations. For example, the general terms and conditions of the bank or savings banks are always to be taken as a basis. Special financing instruments are also taken into account, such as factoring, leasing, etc.

Subjects of bank contracts can be:

Contract variants

  • Finance contracts
  • Bank contract
  • Loan agreements
  • Consumer loans
  • Financial assistance
  • Grant agreements
  • Subsidy contracts
  • KfW loan
  • Agency agreements
  • Contracts with payment services


  • Guarantees
  • Transfer by way of security
  • Land charges
  • Mortgages

FAQ on banking law

Should I also seek advice on banking law when purchasing real estate?

That would be recommendable in any case. After all, real estate is seldom acquired exclusively with equity capital, i.e. for example with savings. In almost all cases - especially if the property is subsequently sublet for commercial purposes, for example - it is also advisable to present the purchase price via outside capital, i.e. bank loans. This is because the loan interest paid there can be claimed for tax purposes as business statements or income-related expenses. The financing agreement will contain provisions on collateral. In almost all cases, mortgages will be granted on the acquired real estate. These can be mortgages or land charges, which have to be entered in section III. of the land register. Without these registrations, banks will regularly not grant loans. Especially when drafting a loan agreement with the corresponding collateral, there are a number of possibilities to offer the borrower extensive flexibility. This requires many years of experience and expertise, also in dealing with banks.

What is the relationship between anking law and real estate law?

In our experience, it is precisely the close interlocking between financing issues and the regulations governing the acquisition of a property that is the key to a successful real estate investment. A lot of money is moved in real estate transactions. The acquisition of a property is invested for a long period of time. Therefore, even small mistakes or miscalculations in the underlying financing contracts are expensive and unnecessarily restrict real estate buyers in the future. The financing banks. Here, too, the individual situation of the bank customer needs to be clarified, also with regard to his overall real estate portfolio, in order to agree on the optimal financing structure or even a simple financing agreement without any ballast. JR has many years of experience in these areas and represents real estate investors vis-à-vis financial service providers such as banks or even private financiers.

Do I have to have the registered mortgage or land charge deleted after repayment of a loan?

No, this is generally not necessary. It is true that the land charge can be deleted from the land register in order to "keep it clean" at this point. However, the owner can continue to use this land charge as owner's land charge after transfer from the bank without deletion and re-registration and make it available to the financing bank (or a third party) as security for a new loan. Then the declaration of security would be adjusted. This would save fees at the notary and court for cancellation and re-registration of a new land charge.

Can I also have my property financed by loans from private individuals (i.e. not from banks), and if so, how should the private individual be secured?

Real estate financing by non-banks is possible and not at all so rare in the commercial sector. Loan agreements can be concluded between two private individuals. In principle, they look like those between bank and customer, with the exception of the bank-specific conditions (terms and conditions of the banks, credit conditions, etc.). Also the depositing of securities is similar. The private lender can be registered as a mortgage creditor in section III of the land register. If the borrower does not pay back the loan, the lender - like a bank - can satisfy itself by compulsory auction of the real estate from the auction proceeds.

Your experts in real estate law in Dusseldorf

Whether attorney, arbitrator, experts in construction, banking or corporate law: JASPER attorneys provide highly specialized legal advice. We look forward to your call under +49(0)211 492590 or by mail to

Contact us