Banking law

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.

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.

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.

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.