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Having a land charge created

Notary · Security for the bank loan

In personWith the loan

Anyone financing a property almost always creates a Grundschuld (land charge). It is the real-property security right with which the bank secures its loan: if the loan is not repaid, it can proceed to realise the plot of land. It is created before the notary and then entered in the Grundbuch (land register).

Unlike with the purchase agreement, this is a unilateral declaration by the owner. Under KV 21200, this attracts a 1.0 fee (at least €60), calculated from Table B. The Bundesnotarkammer gives an example: a €130,000 land charge – €327. That is about half of what a purchase agreement over the same amount would cost.

The point you should be clear about before the appointment is not the price, but submission to immediate compulsory enforcement. It appears in almost every deed creating a land charge and has far-reaching legal consequences: the deed thereby becomes an enforceable title – the bank no longer needs a court judgment if payment is missed.

Notary fees are fixed by law and the same throughout Germany: under § 17 BNotO, the notary is required to charge the prescribed fees; discounts are not permitted. Comparing prices between notaries is therefore pointless.

Last updated27 August 2026
Legal basis§ 1191 BGB · § 873 · § 34 GNotKG · § 17 BNotO
VerificationChecked against gesetze-im-internet.de and notar.de
Written and reviewed byAndrés Sánchez Botta
Independent information page: We are not the notary's office, not an authority and not a paid advice service — we do not submit applications on your behalf. All information comes from official sources and is explained here in simple terms; the competent body is always authoritative. This is not legal advice. The submission to enforcement has far-reaching consequences; have it explained to you. All information is provided without guarantee. We are neither lawyers nor tax consultants: we document administrative procedures and check the information against the official source — this is information, not legal or tax advice.
Notarial recording1.0 feeKV 21200, min. €60
At €130,000€327Example from the BNotK
GrundbuchamtAdded on topSeparate fee
Pay attention toSubmission to enforcementTitle without a judgment
Required documents

What you need

The bank's form for creating the land charge

The bank usually sends it directly to the notary. Check in it the nominal value, the interest rate of the land charge (regularly well above the loan interest rate – this is usual and serves as security) and the enforcement clauses.

Identity documents of all owners

All owners entered in the Grundbuch must take part. For married couples with joint ownership, one partner's signature is not enough – both are needed.

Information on the plot of land

Grundbuchblatt (land register sheet), Gemarkung (cadastral district), Flur (cadastral section) and Flurstück (land parcel). For an ongoing purchase, reference to the purchase agreement deed is generally enough; the notary already has the data in that case.

The loan offer

Nominal value and terms. Important for the question of whether an existing land charge can be reused instead of creating a new one – which saves the whole fee.

In case of repayment: documents for the old land charge

Consent to deletion (Löschungsbewilligung) from the previous creditor or declaration of assignment. Whether the land charge is deleted or assigned is a question of cost – and one that is often decided without anyone asking it.

Step by step

How to proceed

  1. 1

    Check whether an old land charge is enough

    The most effective cost lever, and it is usually overlooked. If a land charge from an earlier financing is still registered, it can often be assigned to the new bank or used again as security for the new loan. Then the fee for creating a land charge falls away entirely. Ask about this before arranging an appointment.

  2. 2

    Give the bank's form to the notary

    This usually runs directly between the bank and the notary's office. Still, look at it: the nominal value, the land-charge interest rate and the enforcement clauses are stated there, and at the appointment they are read out, not negotiated.

  3. 3

    Understand the submission to enforcement

    Almost every deed creating a land charge contains submission to immediate compulsory enforcement. This turns the deed into an enforceable title: if payment is missed, the bank can enforce without suing first. It often also extends to your personal assets, not only to the plot of land. Have exactly this point explained to you.

  4. 4

    Choose a Buchgrundschuld or a Briefgrundschuld

    The Buchgrundschuld (registered land charge) exists only in the Grundbuch. With the Briefgrundschuld (certificated land charge), a certificate is additionally issued that can be transferred – if it is lost, a costly public notice procedure is needed. As a rule, the Buchgrundschuld is the less complicated choice.

  5. 5

    Have it recorded and entered

    The notary records the creation of the land charge and submits it to the land registry for entry. The bank generally pays out the loan only once the entry is secured – allow for this time in the purchase process.

  6. 6

    After repayment: delete it or leave it in place

    Once the loan has been repaid, the bank issues a consent to deletion (Löschungsbewilligung). The deletion costs fees again. A land charge left in place can later be reused for a new financing – so it can deliberately be left in place. On a sale, however, the buyer generally wants to see it deleted.

Fee information

Costs and payment

Cost of the land chargeHalf as expensive as an agreement over the same value
Creation1.0 fee (KV 21200)
Minimum fee€60
At €130,000€327
At €300,000€635
GrundbuchamtSeparate
Use an old land chargeSaves the fee

Creating a land charge is a unilateral declaration and therefore costs only a 1.0 fee (at least €60) under KV 21200 – half as much as an agreement over the same value, for which KV 21100 provides for a 2.0 fee. The Bundesnotarkammer gives an example: a €130,000 land charge comes to €327. At €300,000 it is €635. Added to this are the fees of the land registry for the entry, which are charged separately. The most effective lever lies elsewhere, though: if a land charge from an earlier financing is still registered, it can often be assigned to the new bank or used again as security for the new loan. Then the fee for creating a land charge falls away entirely. Hardly anyone asks this question, because the bank routinely initiates the creation of a new one. Conversely: a deletion after repayment also costs fees – anyone foreseeably financing again can deliberately leave the land charge in place. And, as everywhere in notary fee law, the amount is not negotiable: § 17 BNotO obliges the notary to charge the statutory fee.

Good to know

Important notes

Submission to immediate compulsory enforcement is the most important point. It turns the deed into an enforceable title: the bank can enforce if payment is missed, without suing first.

Check whether it also covers your personal assets. The submission to enforcement often extends not only to the plot of land but to your entire assets. Have this point explained to you expressly.

An old land charge can save the new fee. Assignment or re-use as security for the new loan instead of creating a new one – ask about this before making an appointment.

The high land-charge interest rate is normal. It is regularly far above the loan interest rate and serves only as security. It is not actually paid as long as you service the loan.

The Buchgrundschuld is usually the better choice. With the Briefgrundschuld, the loss of the certificate can be remedied only through a costly public notice procedure.

All owners must take part. With joint ownership, one signature is not enough.

The deletion costs again. After repayment, deletion is not compulsory; a land charge left in place can later be reused.

The land charge and the loan are legally separate. The land charge secures the loan, but is an independent right – which is why it can continue to exist even if the loan has been repaid.

Avoid these mistakes

Common mistakes

Signing the submission to enforcement without reading it. It replaces a court judgment. Anyone who has not understood it does not know the most far-reaching clause in the deed.

Creating a new one even though an old land charge could be used. Costs several hundred euros that nobody gives back – and the question only arises for those who ask it.

Being alarmed by the high land-charge interest rate. It is a security instrument, not a payment obligation, and is standard at this level.

Choosing a Briefgrundschuld without need. The certificate can be lost; restoring it is lengthy and expensive.

Confusing the land charge with the loan. A repaid loan does not automatically mean a deleted land charge – that requires a consent to deletion and the entry of the deletion in the Grundbuch.

Having it deleted reflexively. Anyone who will foreseeably finance again pays twice instead: once for the deletion and once for creating a new one.

Frequently asked questions

Questions and answers

What does creating a land charge cost?

A 1.0 fee under KV 21200 (at least €60), calculated from Table B of § 34 GNotKG. The Bundesnotarkammer gives as an example a €130,000 land charge – €327; at €300,000 it is €635. Because it is a unilateral declaration, this is only half of what an agreement over the same value would cost. The fees of the land registry for the entry come on top, separately.

What does submission to immediate compulsory enforcement mean?

That the notarial deed itself becomes an enforceable title. If payment is missed, the bank does not first have to sue you and obtain a judgment – it can enforce directly from the deed. This is the standard case when a land charge is created and practically unavoidable for the financing. But check what the submission covers: it often covers not only the plot of land but also your personal assets. Have this point explained to you expressly at the appointment.

Can I save the fee?

Possibly entirely. If a land charge from an earlier financing is still registered in the Grundbuch, it can often be assigned to the new bank or used again as security for the new loan, instead of creating a new one. Then the fee for creating a land charge does not arise. Banks routinely initiate the creation of a new one, because that is the simplest route for them – so the question has to come from you. Nothing can be done about the price itself, though: § 17 BNotO obliges the notary to charge the statutory fee.

Why is the land-charge interest rate so high?

Because it has nothing to do with your loan interest rate. The land-charge interest rate entered in the Grundbuch – often 12 to 20% – is a security instrument: it extends the amount for which the bank can seek satisfaction in the event of realisation, and so also covers losses caused by default and costs. As long as you service the loan, it is not paid. A high land-charge interest rate is therefore not a warning sign, but market standard.

Buchgrundschuld or Briefgrundschuld?

As a rule, the Buchgrundschuld (registered land charge). It exists solely through the entry in the Grundbuch. With the Briefgrundschuld (certificated land charge), a land-charge certificate is additionally issued, which allows transfer outside the Grundbuch – convenient for banks, risky for you: if the certificate is lost, deletion requires a public notice procedure that takes months and costs money. If the bank gives no particular reason, the Buchgrundschuld is the less complicated choice.

Do I need to have the land charge cancelled after repayment?

No, there is no obligation. After full repayment, you receive a consent to deletion (Löschungsbewilligung) from the bank, but you do not have to use it. A land charge left in place can be reused for a later financing and then saves the fee for creating a new one. Against this: on a sale, the buyer as a rule wants an encumbrance-free Grundbuch, and then the deletion arises anyway. Decide according to how likely renewed financing is.

What is the difference from a mortgage (Hypothek)?

The Hypothek (mortgage) is strictly tied to a specific claim: as the loan is paid down, the mortgage automatically shrinks with it. The Grundschuld (land charge) under § 1191 BGB, by contrast, is independent of the claim – it remains in full even if the loan is almost repaid. It is precisely this independence that makes it flexible and reusable, which is why in practice land charges are used almost exclusively. The balance is achieved through the security agreement between you and the bank.

Must both spouses sign?

If both are entered as owners in the Grundbuch: yes, without exception. A land charge can only be created jointly by all owners, and one partner's signature is not enough. If, by contrast, only one person is entered in the Grundbuch, that person creates it alone – even if both take out the loan. Check the Grundbuch entry in advance, therefore; it diverges from expectations more often than you might think.

Related official procedures

Property purchase
The first appointment
2.0 fee
Power of attorney
If someone cannot attend
From €20
Grundbuchamt
Entry and deletion
Under the GNotKG

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