Construction financing without land registry entry - terminate

Hello everyone,

In 2006 I bought an apartment and took out a loan of 181,000 euros from the local Sparkasse for it.

Now, 5 years later, the Sparkasse has noticed that they forgot to register the land charge or that no land charge has been registered until now.

They are now demanding this from me.

But I have now read in various posts on the internet that you can terminate a construction loan without a land charge registration at any time with 3 months' notice!?!

My consideration is to switch to a cheaper provider.

Can someone give me a tip if that is possible?

Thanks

Best regards
MiiFritz

Hello,

I recommend that you take a look at the loan agreement you also signed in 2006. There you agreed to a land register security (otherwise you probably would not have received financing).

It does not say anything about the timing, and if the land charge has still not been registered, that is hardly a reason for you to terminate the loan early without prepayment penalty. On the contrary: the bank has the right to insist on fulfillment of the contract and can otherwise terminate the loan itself. And that would likely make it difficult for you to conclude a new loan agreement with another institution.

Why don't you ask your bank what they think of your proposal!

Best regards

M. Thiemann