Promissory Note Secured By A Deed Of Trust for Germany

Promissory Note Secured By A Deed Of Trust Template for Germany

This document combines a promissory note with a deed of trust under German law, creating a secured lending arrangement where real property serves as collateral for a debt obligation. The document is structured to comply with German civil law requirements while providing clear terms for both the debt obligation and the security interest. It includes detailed provisions for payment terms, property maintenance requirements, default scenarios, and enforcement procedures, all within the framework of German property and security interest laws. The document must be notarized and registered with the German land registry (Grundbuch) to create an enforceable security interest.

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What is a Promissory Note Secured By A Deed Of Trust?

The Promissory Note Secured By A Deed Of Trust is a fundamental document in secured real estate financing under German law. It serves to document both the borrower's obligation to repay a specific sum and the security interest in real property that guarantees that obligation. This document type is commonly used in both commercial and residential property financing, providing lenders with a secure interest in real property while giving borrowers access to financing. The document must comply with German civil law requirements, particularly the Bürgerliches Gesetzbuch (BGB) and Grundbuchordnung (GBO), and requires notarization and registration in the land registry. It's particularly useful in situations where parties need a clearly documented loan structure with strong security provisions, whether for business expansion, property acquisition, or refinancing existing obligations.

What sections should be included in a Promissory Note Secured By A Deed Of Trust?

1. Parties: Identification of the lender (Beneficiary), borrower (Trustor), and trustee

2. Background: Context of the loan agreement and security arrangement

3. Definitions: Key terms used throughout the document

4. Promise to Pay: The core promissory note obligation, including principal amount, interest rate, and payment terms

5. Security Interest: Description of the property being used as security and creation of the trust deed

6. Payment Terms: Detailed payment schedule, methods of payment, and prepayment provisions

7. Default Provisions: Events of default and consequences

8. Enforcement Rights: Rights and remedies of the beneficiary in case of default

9. Property Maintenance and Insurance: Obligations regarding maintenance and insurance of the secured property

10. Transfer and Assignment: Provisions regarding transfer of the note or property

11. Notices: How and where notices must be delivered

12. Governing Law: Confirmation of German law application and jurisdiction

What sections are optional to include in a Promissory Note Secured By A Deed Of Trust?

1. Late Payment Provisions: Include when parties want specific terms for late payments beyond default provisions

2. Tax Provisions: Include when there are specific tax considerations or obligations

3. Consumer Protection Disclosures: Include when the borrower is a consumer rather than a business entity

4. Cross-Collateralization: Include when the trust deed secures other obligations besides this promissory note

5. Subordination Provisions: Include when there are multiple lenders or existing liens on the property

6. Currency Provisions: Include when the loan is in a currency other than Euros

7. Acceleration Clause: Include when immediate repayment of the entire loan amount is desired under specific circumstances

What schedules should be included in a Promissory Note Secured By A Deed Of Trust?

1. Property Description Schedule: Detailed legal description of the secured property

2. Payment Schedule: Amortization table showing payment dates and amounts

3. Insurance Requirements: Detailed specifications for required property insurance

4. Property Title Documentation: Copies of relevant land registry excerpts (Grundbuchauszug)

5. Existing Liens Schedule: List of any existing liens or encumbrances on the property

6. Required Notices and Forms: Standard forms for notices and communications between parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions
Relevant Industries

Banking & Financial Services

Real Estate

Construction

Property Development

Commercial Property

Residential Property

Agriculture

Industrial Property

Hospitality

Retail

Relevant Teams

Legal

Finance

Real Estate

Credit Risk

Compliance

Property Management

Investment

Mortgage Operations

Trust Administration

Document Management

Relevant Roles

Legal Counsel

Real Estate Attorney

Finance Manager

Loan Officer

Credit Risk Manager

Property Manager

Real Estate Developer

Mortgage Specialist

Compliance Officer

Real Estate Investment Manager

Banking Executive

Trust Officer

Property Investment Advisor

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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