Loan agreement possible before transfer for land registry exists

With us, the bank had not yet seen any official documents regarding the property at the time of signing the loan agreement… they only wanted proof from the notary that the land charge was actually registered at the time of the first partial disbursement.

For us, the land register excerpt was actually on the list of documents for every financing offer. But there are certainly also banks that are more relaxed about this.

Hi. I have a question for you about construction financing. Has anyone taken out a construction loan even though the land register entry is not yet available? If yes, what was alternatively submitted to the bank? The background is that due to rising interest rates, we rushed the entire planning and already have a financing inquiry for a good offer. However, the plot of land in a newly developed building area was only purchased by us in March, and the notary is not making progress with the conveyance. The land register entry is the only missing document. It would be really annoying if something goes wrong with the construction financing now. Thanks to you.

The question is, what does "the land register entry" mean to you? Financing with conditions is always possible. No matter what documents are missing. Tell me what exactly concerns you. Subdivision of the plot and missing land register sheet? Notice of conveyance? Change of ownership? Land charge registration?

Hi, no, I checked again. The document is called a rank certificate (also notarized certificate). In it, the notary certifies that he has applied for the land charge to be registered at the office for the financing. This way, the bank knows that - although no entry in the land register has been made yet - the land charge has already been applied for and thus nothing stands in the way of the financing payout.

That's exactly right. The notary (or an employee) must personally apply for it at the district court, but that's routine. That's definitely sufficient for the bank. You never know how fast the district court works!

We have a similar situation. First, we bought the land with a variable loan from the house bank, then only afterwards signed the house construction contract. The overall financing was not possible at the moment because the disbursement of the variable loan must first take place in order to repay it. However, the registration of the priority notice is required for this, which we have been waiting for since the end of February. Due to time pressure, we have now taken out the house construction amount as a regular loan and will repay the variable loan once the priority notice is in place. Instead of one, two loans through the house bank. Maybe this helps you further.

The question is, what does "der Grundbucheintrag" mean to you? Financing with conditions is always possible. No matter what documents are missing. Tell me exactly what concerns you. Plot subdivision and missing land register sheet? Priority notice of conveyance? Change of ownership? Land charge entry?

We are building in a newly developed residential area. Previously, it was an agricultural area. Accordingly, there is nothing yet in the land register regarding our building plot. The bank has already inquired a few times about the land register excerpt, land register number, etc. We don't have any of that yet because we only bought the plot at the beginning of March, and the notary is not making progress with the conveyance. Therefore, for the bank, we currently only have the notarized purchase contract and a payment receipt from the municipality. Now I have concerns about whether the construction financing will be rejected because of this. Of course, given the interest rate increase, let's say it's complicated. The mentioned priority certificate is possibly an option here.

We are building in a newly developed residential area. Previously, it was an agricultural area. Accordingly, nothing about our building plot is yet recorded in the land register.
The bank has already followed up a few times regarding the land register excerpt, land register number, etc. We don't have any of that yet because we only bought the plot at the beginning of March and the notary is not making progress with the conveyance. Accordingly, for the bank, we currently only have the notarized purchase contract and a payment receipt from the municipality. Now I have concerns whether the construction financing will be rejected because of this. Of course, with the interest rate increase, let's say it would be complicated.
The mentioned priority certificate might possibly be an option.

Ok, understood.
The financing should not be rejected just because the plot may not yet have been surveyed and updated (this is more of an issue with the authority than with the notary).

A priority certificate is only needed at the time of disbursement, as the land charge is always only registered after signing the loan agreement. Apart from that, however, the bank will not disburse even with a priority certificate before the entry of a priority notice. Because then the bank still has no security since the property still belongs to the seller and no priority notice has been entered.
In the end, though, it doesn't matter because there is guaranteed to be a clause in the purchase contract stating that the purchase price is only due after the entry of the priority notice.

You can be quite relaxed.