Mortgage Release Template for Germany

A Mortgage Release (Grundschuldfreigabe) is a legal document that formally cancels and removes a mortgage from your property in the German land registry (Grundbuch). When you've fully paid off your mortgage loan, your bank issues this release to confirm they no longer have any claims against your property.

Under German civil law (Bürgerliches Gesetzbuch), this release must be notarized and submitted to the local land registry office to clear the property title. Banks typically process the release within 4-6 weeks after receiving the final payment, though you may need to request it explicitly. Getting this document marks the final step in achieving full, unencumbered ownership of your property.

You need a Mortgage Release (Grundschuldfreigabe) when selling property in Germany that still has a registered mortgage, even if you've already paid off the loan. Most German buyers and their banks require a clean property title before completing the purchase, making this release essential for the sale to proceed.

The release is also crucial when refinancing with a different bank, as German law requires clearing the old mortgage before registering a new one. Getting this document early in the refinancing process helps avoid delays, since the notarization and land registry updates can take several weeks. Many property owners request it immediately after making their final mortgage payment to maintain maximum flexibility.

• Standard Mortgage Release: Basic cancellation document that removes a single mortgage from the property title, commonly used for residential properties after full loan repayment
• Partial Release (Teillöschung): Releases only a portion of the mortgaged property, useful when selling part of a larger property
• Priority Release (Rangrücktritt): Adjusts the ranking of multiple mortgages in the land registry, often used in refinancing situations
• Conditional Release: Contains specific conditions that must be met before the release takes effect, typically used in complex property transactions

• Lending Banks: Create and issue the Mortgage Release after confirming full loan repayment, must have it notarized before submission
• Property Owners: Request and receive the release document, coordinate with notaries and land registry offices for processing
• Notaries (Notare): Authenticate the release document and prepare it for land registry submission, verify all parties' identities
• Land Registry Officials: Process the release and update the Grundbuch (property register) to remove the mortgage entry
• Real Estate Lawyers: Review release documents, coordinate between parties, ensure proper filing and registration

• Property Details: Gather the current land registry extract (Grundbuchauszug), property address, and plot numbers
• Loan Information: Collect mortgage account number, original loan amount, and confirmation of full repayment
• Bank Details: Note the lending bank's full legal name, registration number, and authorized representative
• Owner Information: Compile current property owner's details exactly as listed in the land registry
• Release Format: Our platform generates the correct release format based on your specific situation, ensuring compliance with German land registry requirements
• Notary Appointment: Schedule notarization early, as this can take several weeks to process

• Property Identification: Full legal description matching the land registry entry, including plot numbers and address
• Mortgage Details: Original mortgage amount, registration date, and land registry reference number
• Release Declaration: Clear statement confirming full discharge of the mortgage and bank's consent to removal
• Bank Authorization: Official bank details and authorized signatory information
• Owner Information: Current property owner's details exactly as registered in the Grundbuch
• Notarization Block: Space for notary's official seal, signature, and certification text
• Land Registry Instructions: Specific direction for the cancellation entry in the Grundbuch

A Mortgage Release (Grundschuldfreigabe) is often confused with a Release of Mortgage, but they serve distinct purposes in German property law. While both documents relate to removing financial claims on property, their application and legal effects differ significantly.

• Legal Framework: A Mortgage Release specifically deals with German Grundschuld (land charge), while a Release of Mortgage addresses traditional mortgages (Hypotheken)
• Processing Requirements: Mortgage Release must be notarized and registered in the Grundbuch; Release of Mortgage may not always require notarization
• Timing of Effect: Mortgage Release takes effect only after land registry entry; Release of Mortgage can be effective upon signing
• Scope of Release: Mortgage Release cancels the entire land charge; Release of Mortgage can be partial or conditional