The so-called Cologne Shrine Records dating back to the 12th century are considered the oldest German land registers. They consisted of collections of deeds and other documents relating to real estate transactions. Their name derives from the church chests, known as “shrines”, in which they were stored. Today, land registers are maintained exclusively in electronic form, following a decision made as early as 1993 under the German Act to Accelerate Registration Procedures. While the format has changed considerably, the content of the land register has become increasingly important over the centuries. Today, it is an indispensable part of the process of buying and selling property.
Anyone wishing to buy or sell a plot of land or a property inevitably has to deal with the land register. In principle, the land register is an official record of all plots of land located within a particular district. The German Land Register Code specifies what must be entered in the land register, how the register is to be maintained and what powers judicial officers have when registering or deleting rights relating to a property.
Each plot of land is assigned its own land register folio. This is divided into five standard sections. The first part of the folio is the heading. It states the name of the competent local court, the name of the land registry district and the consecutive number of the land register folio.
The second part is the inventory, which describes the property in question, including information provided by the cadastral authority and the type of economic use or permitted use. Today, the cadastral authority is more commonly known as the land surveying authority. It records the size and boundaries of properties and plots of land. The official cadastral map therefore forms the basis of the land register.
The heading and inventory are followed by Sections I to III of the land register. Section I contains information about the property owners, any holders of hereditary building rights and the legal ownership status. The latter may include references to the conveyance required for a transfer of ownership, meaning the legally binding agreement between the seller and buyer recorded in connection with the land register, as well as notices relating to foreclosure proceedings.
Section II lists all encumbrances and restrictions registered against the property. These may include rights of use, usufruct rights and hereditary building rights. The priority notice of conveyance, which is particularly important for buyers, is also recorded in this section.
Section III lists all mortgages, land charges and annuity charges registered against the property. The order of the individual entries is of fundamental importance, as it determines how the proceeds are distributed among creditors if the property is sold or foreclosed. The consecutive number assigned to a registered right indicates its ranking within the respective section. For example, “Section II/1” refers to the right registered in first priority in that section.
What Is Entered in the Land Register?
There are four types of land register, which differ according to the type and use of the property. The general land register records ownership rights relating to the respective plot of land.
The residential or partial-ownership land register becomes relevant when an apartment building is divided into individually owned apartments or commercial units and the corresponding division of ownership is registered.
The hereditary building-rights register includes all rights that permit a person to use land belonging to someone else for the purpose of constructing a building.
The building ownership register, which dates back to the former German Democratic Republic, is becoming increasingly less significant. It documents the possibility of owning a building independently of the land on which it stands.
There are various circumstances in which an entry must be made in the land register. These include the purchase of a property or plot of land, the transfer of property financing to another bank, a significant alteration to the property or a change of creditor.
To have an entry made in the land register, an application form and a notarised consent to registration issued by the previous property owner are required. Depending on the circumstances, new owners may also have to submit additional documents to the local court, such as a declaration of conveyance and a tax clearance certificate issued by the tax office.
What Costs Are Involved?
In principle, the costs of an entry in the land register are based on the purchase price of the property concerned. Put simply, the more expensive the plot of land or building, the higher the registration costs. In addition to the cost of the actual land register entry, separate fees are charged for registering the priority notice of conveyance and for the notary’s services.
Property owners also incur additional costs whenever entries in the land register need to be amended. One reason for such an amendment may be the transfer of a property financing loan from one bank to another. A change of creditor means that the previous entry must first be deleted from the land register and then replaced with a new one.
Before deciding to purchase a plot of land or a property, prospective buyers should also obtain an extract from the land register to check whether the property is subject to any encumbrances. The land registry generally charges a fee of EUR 10 for such an extract.
