When must the establishment of the land charge take place?

Hello everyone,

we have found a great house and have accordingly confirmed with the real estate agent.
She now wants to arrange the notary appointment, which is also in our interest.

Our financial advisor, on the other hand, is urging us to postpone the choice of bank,
as he expects interest rates to continue falling.

Therefore, I am wondering whether I already need the form for the mortgage registration at the notary appointment or if the purchase can be finalized without it and the mortgage registration can be submitted later.

I would be very grateful for any help!

Best regards

Hello, Timmi!

Basically, the financing is your problem, at the purchase contract you initially only agree on the purchase price and you commit to paying it within a reasonable period. If you don’t get financing or don’t pay for any other reason, the purchase contract will eventually be reversed and you may even be liable for damages to the seller.

The question is which time frame you agree on with the seller or how patient he is.

However, one should consider that without financing/payment of the purchase price you cannot get into the land register. The transfer takes about 4-6 weeks in NRW after payment of the purchase price; in the meantime, for every little thing concerning the property, you have to bother/annoy the current owner.

This also applies especially to the building application, which can only be submitted on the seller’s property with the approval of the previous owner.

So if you’re in a hurry, the interest argument is in my opinion irrelevant. If you have more time, you can still gamble on falling interest rates.

Best regards
Dirk Grafe

Hello Dirk,

This also applies specifically to the building application, which can only be submitted with the consent of the previous owner on their property.

That is not true. A third party can also submit the building application and have it approved. In this respect, no problem for the owner, as the approval is granted "without prejudice to the private rights of third parties."

Rhenish greetings

Anyway: whether the savings outweigh the postponed quality of life is to be decided. There are people who willingly wait for the right moment in their lives... (And if they haven't died, they're still waiting) But I would not allow an independent person to tell me that.

Hello Timmi,

well, interest rates keep falling...

Where are they supposed to fall to?

By now we have reached the point where there are even negative deposit interest rates.

I don't want to offend your financial advisor, but here a second opinion seems absolutely advisable to me.

As has already rightly pointed out, you do not need a confirmed financing or a land charge deed at the notary appointment for the purchase of the house.

However, if after signing the contract, for whatever reason, you no longer get the appropriate financing, you have a big problem.

I, as a banker with experience in real estate financing, would not want to take this risk if I had to finance a significant part of the purchase price.

Regards,

Dirk

You should definitely secure a "basic financing commitment" from a bank beforehand. The contract and thus the terms can always still be finalized.