Suretyship / Guarantee, Mortgage and Assignment

Hello everyone,

I have finished the financing agreement, but I am confused about the different types of collateral the bank accepts and what the differences are between them.

Some notes about the project and the financing agreement:
- We are buying a building plot from a private seller.
- We have a separate construction contract.
- The financing was handled through the Sparkasse, but the money actually comes from LBS & Versicherungskammer Bayern.

At first, I thought that the mortgage was sufficient collateral for the bank.
But as part of the LBS contract, there was another document called: "Übernahme einer Bürgschaft - Bürgschafts-Auftrag -". The bank told me that they have to take over this guarantee for LBS and keep the mortgage as collateral.

After the notary appointment, we received another document from LBS called: "Abtretung von Einzelforderungen" and a "Abtretungsanzeige", which I was supposed to send to the seller of the plot.

I still do not understand the connection between all these points: guarantee, mortgage, and the assignment.

Is this a normal procedure?
Is there a simple explanation of what the difference between all these points is and how they relate to each other?

Thank you very much
Best regards

Is this a normal procedure?

Maybe at LBS. Not at any normal banks ;)

Is part of it a building savings contract because LBS is involved? Presumably it is simply the protection of the independent companies Sparkasse and LBS among themselves, so that LBS also has access to the mortgage even if it is not registered in the land register but only the Sparkasse.

so that the LBS also has access to the mortgage even if it is not registered in the land register but only the Sparkasse is.

But if the Sparkasse does not grant a loan, the LBS could simply be entered in the land register. No guarantees, no effort, nothing – for that reason, the LBS often appears in the land register itself.

Is part of it a home savings contract because the LBS is involved?

Yes.

Presumably it is simply the collateralization of the independent companies Sparkasse and LBS with each other, so that the LBS also has access to the mortgage even if it is not listed in the land register but only the Sparkasse.

Yes, that makes sense. The land charge is for the Sparkasse, so it should give LBS a certain security.
But shouldn't that be a matter between LBS and Sparkasse? Why should I provide this security for the LBS, while the Sparkasse also holds the land charge?

If the Sparkasse doesn't give a loan, LBS could simply be listed in the land register. No sureties, no effort, nothing - and LBS is often listed in the land register themselves anyway.

That would have been much easier :)

But what is this assignment? And what is the assignment notice that is sent to the seller?

But what is this assignment? And what is the assignment notice that is sent to the seller?

Since you do not write what is being assigned, I cannot say why. Just post the cession here with the sensitive parts blacked out.