The land register extract consists of three parts. The first section lists the owner of the land and the property. The second section details rights and encumbrances associated with the property, such as rights of residence or easements. The third section lists liens, usually mortgages, which lending banks register as security for their financing.
The land register is kept at the relevant local court. However, not everyone is entitled to request an extract; a legitimate interest must be demonstrated. For example, you as the owner may request an extract, but a prospective buyer may not. A notary public drafting the real estate purchase agreement is also entitled to request one.
When selling a property, an extract from the land register is relevant for two reasons. Firstly, it is necessary for drawing up the purchase agreement. Secondly, buyers usually want to know if there are any encumbrances registered that could negatively impact the property's value. The extract should be only a few weeks old. The local court charges a fee of €10 or €20 for issuing it, depending on whether a certified or uncertified copy is required.
Often, owners have paid off their property before selling, but the mortgage hasn't yet been removed from the land register. Without this removal, a quick sale isn't possible. To remove the mortgage, you need to contact the financing bank, which in turn commissions a notary to handle the removal. This can take several weeks.
Therefore, you should take care of obtaining the land register extract early and ensure that your land register entry is free of paid-off loan entries before the start of the brokerage process.
The buyer also needs a land registry extract for their mortgage. Furthermore, a property can be transferred even if it is not yet fully paid off. This often applies to properties in divorce proceedings.
Do you need help obtaining an extract from the land register? We are happy to assist you.
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