For some time now, Crowdrealestate has offered the opportunity to invest in German real estate. Thanks to the attractive conditions, the share of German propositions has increased to around 42% in recent years. For any financing through Crowdrealestate, the presence of a mortgage right is a crucial requirement. The registration of this mortgage right in Germany follows a detailed procedure. We would like to take you through this.
1. Approval of mortgage deed
The draft of the mortgage deed (Grundschuldurkunde) is submitted to Crowdrealestate and the independent collateral agent Crowdrealestate, which safeguards the interests of the investors. After approval by both parties, the Borrower then receives a written agreement that the mortgage deed can be registered in the Grundbuch, Germany's land register.
2. Passing mortgage deed
The Crowdrealestate Borrower, i.e. the current or future owner of the property must sign the deed at the office of the German notary. This is also called the Beurkundung in German. If the property has not yet been acquired in ownership by the Borrower, the seller is also included as a party in the mortgage deed. The copy of the signed mortgage deed is delivered to Crowdrealestate's permanent notary office in the Netherlands, where the third-party account is managed.
3. Confirmation German notary
After the mortgage deed has been executed, the German notary sends a confirmation thereof to the Crowdrealestate notary in the Netherlands. This confirms that the deed has been passed and sent to the Grundbuchambt for registration.
4. Copy of mortgage deed
After execution of the mortgage deed the Vollstreckbare Ausfertigung (the copy of the mortgage deed - provided with an apostille) is sent by post to the mortgage holder Stichting Zekerhedenagent Crowdrealestate. This copy is carefully kept by the crowd's advocate. A copy of it is available to investors in the relevant proposition at any time upon request.
5. Confirmation Grundbuchambt
Within a few weeks, confirmation is received that the mortgage right has been registered in the Grundbuch. This confirmation is communicated by post, by means of an Eintragungsbekanntmachung to the mortgagee. This also applies to future changes to rights in rem relating to the property in question, such as the cancellation of the mortgage right or ownership changes. Establishing a mortgage right in Germany is a precise process, requiring many steps to be taken. Crowdrealestate's team has specialised in this by realising dozens of propositions in Germany. Examples of these propositions include Nieuwbouw Freudental, Portefeuille Erfurt, Woningen Hof and Appartementencomplexen Gössnitz.