Discharging a Mortgage: Here's How It Works

People who have paid off their mortgage in full often still have a land charge listed in the land registry for years-without realizing it or knowing what to do next. In Fürth, the “cloverleaf city” with a stable real estate market located between Nuremberg and the southern district, this affects thousands of homeowners. The process for removing the land charge is clearly regulated, but it involves several steps at the bank, notary, and land registry office that take time and money-and that you should be aware of to avoid unnecessary delays.

What is a land charge, and why does it remain after repayment?

The land charge is by far the most common security instrument for real estate loans in Germany. It is entered in Section III of the land registry and gives the lending bank the right to foreclose on the property in the event of default-specifically through a forced sale. The land register is a public record that anyone can view: prospective buyers, other banks, and courts can see the registered land charge.

The key legal point: Under German law, the land charge is abstract. It is legally independent of the underlying loan claim. This means it does not automatically expire with the final loan payment. The loan may have been repaid in full, but the land charge remains in the land register-visible as an encumbrance on the property.

After full repayment, the owner has a contractual claim against the bank for the issuance of a release authorization. This claim arises from the security agreement (also known as a declaration of security purpose) signed between the borrower and the bank when the loan was taken out. The bank is obligated to issue the release authorization as soon as there is no longer a secured claim and all ancillary costs (account maintenance fees, outstanding interest) have been settled.

As long as the land charge is registered in the land registry, the property appears encumbered-even if there is no longer a loan behind it. This can lead to inquiries from buyers and their financing banks during a sale, complicate purchase price negotiations, and in some cases delay the sales process by several weeks. In Fürth, where the lively existing-home market in the mid-price segment expects quick transactions, this is particularly relevant.

Step by Step: The Complete Discharge Process

The discharge of a land charge in Bavaria follows a structured process with clear responsibilities and typical timeframes for each stage.

Step	Responsible Party	Typical Duration	Costs
Submit application for cancellation authorization to the bank	Owner (informal, in writing)	Immediately	None
Issuance of cancellation authorization by the bank	Creditor bank	2-6 weeks	None (legal obligation)
Forwarding of the authorization to the notary	Owner or bank directly to notary	1-3 days	None
Notarization of the authorization	Notary	1-2 weeks	per GNotKG
Submission of documents to the land registry office	Notary	immediately after notarization	Land registry fee
Review and registration of the deletion	Fürth Land Registry Office	2-6 weeks	-
Sending the updated land register extract	Land Registry Office to notary, notary to owner	1-2 weeks	extract fee if applicable

Source: GNotKG (Court and Notary Fees Act), Land Registry Ordinance (GBO § 29), processing times at the Fürth Land Registry Office, as of Q1/Q2 2026.

An important practical note: Banks now frequently issue cancellation authorizations digitally as PDFs. However, they must be submitted to the Land Registry Office in paper form with notarial certification. GBO § 29 requires publicly certified declarations-a simple copy, an uncertified printout, or a scanned signature are not sufficient. The notary accepts the original document from the bank and certifies it.

Notary Fees Under the GNotKG: Specific Sample Calculations

Notary fees for the cancellation of a land charge are governed by the Court and Notary Fees Act (GNotKG), which replaced the old Court Costs Act for notary fees in 2013. The basis is the transaction value, i.e., the amount of the registered land charge.

> The valuation tool from leadmarkt.ch provides an initial estimate of the current market value of your property in Fürth-data-driven and available in just a few minutes.

Specific fee examples for land charges in Fürth:

For a land charge of 100,000 euros, the basic notary fee according to Table B of the GNotKG is approximately 207 euros. For certifying the consent to cancellation, the notary charges 0.2 times the basic fee (41 euros) plus VAT and a flat-rate expense fee - totaling approximately 80-130 euros. An additional fee of approximately 0.3 to 0.5 times the basic fee applies for filing with the land registry office. Total costs for a €100,000 land charge: typically €200-350.

For a land charge of €250,000, the total costs rise to approximately €450-700. For 400,000 euros, they amount to approximately 650-950 euros. Notaries in Bavaria are bound by the statutory fee schedules and are not permitted to offer discounts-however, there are differences between various notary offices due to flat-rate expense allowances and additional fees for complex cases.

In addition to notary fees, land registry fees apply, which are paid directly by the land registry office to the court. These are also based on the GNotKG and are of a similar magnitude to the notary fee.

Owner’s Mortgage: When Delaying Discharge Is an Option

Immediate discharge is not always the most sensible step. After the loan has been repaid and the cancellation authorization issued, the owner can decide: Cancel it or leave it as an owner’s land charge?

The owner’s land charge remains in the land registry but is formally held in the owner’s own name. This arrangement has a concrete advantage: The land charge can be reused for future financing without incurring new land registry fees for a new entry. Anyone planning to renovate the property for energy efficiency in the medium term and take out a KfW or BAFA loan for this purpose can assign the existing land charge to the new bank as collateral. This saves costs-a new registration of a land charge of, for example, 200,000 euros would incur notary and land registry fees of approximately 700-1,100 euros.

When selling the property, however, the land charge must generally be discharged. Buyers and their financing banks insist that the land register be free of third-party rights at the time of title transfer. In Fürth, it is therefore customary to organize the discharge of the land charge as part of the purchase agreement process: The application for cancellation is submitted from the notary’s escrow account, and the cancellation is coordinated with the transfer of ownership.

Common Errors in the Cancellation Process

In the practice of notary offices in Nuremberg and Fürth, the same issues regularly arise during the cancellation of land charges:

Outdated bank details: Following bank mergers or acquisitions (such as savings banks that have transferred real estate loans to other institutions), the creditor bank originally registered is no longer the holder of the land charge. The owner must first determine who the current holder of the land charge is-only the current holder can grant authorization for cancellation.

Lack of Powers of Attorney for Joint Debts: When there are multiple borrowers (e.g., a married couple as joint borrowers), all borrowers must consent to the cancellation request. In divorce situations, this can lead to delays.

Partial assignments of the land charge: If the bank has assigned the land charge to a mortgage bank or a securitization vehicle for refinancing purposes, the authorization for cancellation must be granted by the current holder of the land charge-which can significantly prolong the cancellation process.

Local Nuance: Fürth, the Cloverleaf City

Fürth-the Cloverleaf City in the west of the Nuremberg metropolitan region-has a vibrant real estate market that has established itself in recent years as a distinct entity alongside the Nuremberg market. According to the Fürth Appraisal Committee (2025 Annual Report), purchase prices for single-family homes ranged from €2,600 to €4,200 per square meter of living space, with clear differences between neighborhoods. Popular locations such as Ronhof, Poppenreuth, and the Wilhelminian-style Südstadt are at the higher end of the spectrum; areas along the railroad tracks and in the Nordstadt are more affordable.

The Fürth Land Registry is responsible for the entire city of Fürth as well as parts of the Fürth district. According to current information from Fürth notaries, processing times for land registry entries and deletions range from 2 to 6 weeks-a moderate level by Bavarian standards. Anyone wishing to sell in Fürth should initiate the cancellation of the land charge at least 8 to 10 weeks before the intended notarization date for the purchase agreement to avoid any delays.

Digitalization at the Land Registry: Current Developments

In recent years, Bavaria has gradually expanded digital access to the land registry. Through the Electronic Court and Administrative Mailbox (EGVP), notaries in Fürth can now submit applications digitally to the Land Registry-which has reduced processing times to under 3 weeks in some cases. For property owners, direct digital access to the land registry is available via the “Grundbuch Online” platform of the State Office for Digitalization, Broadband, and Surveying (LDBV)-a current land registry extract can be retrieved online within minutes.

The electronic land registry extract has the same evidentiary value as a paper-based printout and is recognized by banks, notaries, and courts. For owners who wish to check whether an old land charge is still registered or who is currently listed as a creditor in the land registry, the online retrieval is the fastest way to obtain this information themselves-without having to wait for an appointment at the land registry office. The equity document in the land registry-such as a land charge that is still registered but already debt-free-is immediately visible to buyers or their financing banks through the online extract. This is another reason not to put off the cancellation after loan repayment.

Conclusion for Property Owners in Fürth

Discharging a land charge after full loan repayment is a manageable but time-consuming administrative process with clear cost items. The key steps: Request discharge authorization from the bank, have it notarized, and submit it to the land registry office-allowing for a realistic lead time of 8 to 12 weeks. Notary fees under the GNotKG are regulated by law and can be calculated transparently, so there are no unpleasant surprises.

Anyone planning to sell the property in the foreseeable future should proactively initiate the cancellation process well in advance. In practice on the Fürth real estate market, sellers frequently find that the notary appointment for the purchase agreement must be postponed due to a land charge that has not yet been canceled-resulting in additional costs from extended bridge financing, late payment interest, and dissatisfied prospective buyers. The valuation tool from leadmarkt.ch provides a quick overview of the current market value of your Fürth property-a solid foundation for sales planning and for deciding whether the land charge should be discharged or continued as an owner’s land charge.

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Created by the my-home.de editorial team in collaboration with regional real estate analysts. Data as of: Q1/Q2 2026.