Purchase of a property with a land charge

Hello,

I have a question about buying a property with a land charge. I read everything on Wikipedia, but I almost understood nothing.

I understood what a land charge is for and why the current property owner did it.

Now my question is:

If, for example, I bought the property. How does it work with the land charge? Who continues to pay off the loan and who is liable?

I would be very happy to receive an answer.

Best regards
Axel

Good evening Axel,

I have a question about buying a property with a land charge. I read everything on Wikipedia, but I almost only understand "Bahnhof".

Then there are two of us; I don't understand your question ...

Rhenish greetings

Hello

you are confusing something. First of all, there are the bees and the seed, oh no, again :=)


You want to buy a property and need money from the bank. They enter into a loan agreement with you and have a land charge registered on the property.

They now have

a- the real security (can sell the property at any time if you do not repay)
b- personal liability (those who signed the loan agreement are also personally liable)

It doesn't matter who owns the property and who signs the loan agreement. Someone is always liable :)

Hi,
at the notary it will be arranged that the property is transferred free of encumbrances, i.e. without a mortgage.
In this case, the seller must repay the loan if the registered mortgage is still drawn down.

Hi,
at the notary, it is arranged that the property is transferred free of encumbrances, meaning without a land charge.
In this case, the seller must repay the loan if the registered land charge is still drawn down.

Thank you.

But what happens if the buyer assumes the land charge? Is the loan then also transferred, or must the seller continue to pay off his loan normally? Once it is paid off, does the seller later cancel the land charge?

Is that correct?

Why should the buyer take over the property? The notary will ensure that the bank receives its money, then the property will be released from charges and the seller can transfer the property free of encumbrances.