Authorization for Discharge: Procedure Following Repayment of a Land Lien

After years of making payments, the loan is finally paid off-a significant milestone for every property owner in Schwabach. However, the land register still lists the mortgage in Section III in favor of the bank. What now? Obtaining the release authorization is the crucial step toward clearing the land register. The process is clearly regulated by law, but in practice it can sometimes be time-consuming. Those who know the steps can reach their goal faster and avoid typical pitfalls when selling or refinancing.

Legal Background: Mortgage and Discharge under the BGB and GBO

According to Sections 1191 et seq. of the BGB, a mortgage is a non-accessory security interest. This means: It continues to exist even after the secured loan has been fully repaid until it is actively deleted from the land register. Repayment of the loan alone does not result in automatic deletion. This non-accessory nature distinguishes the land charge from a mortgage, which automatically becomes an owner’s land charge upon full repayment.

Pursuant to § 1192 BGB, the provisions governing mortgages apply mutatis mutandis to land charges, unless otherwise specified. Section 875 BGB applies to cancellation: To revoke the registered right, the consent of the entitled party (the bank) and the registration of the cancellation with the land registry office are required.

The legal basis for the consent to cancellation is § 19 of the Land Registry Act (GBO): The cancellation is registered upon application if proof of the consent to cancellation by the entitled party is provided. The consent must be submitted in the form prescribed by § 29 GBO-that is, publicly certified or notarized.

The Schwabach Local Court (Land Registry Office) has jurisdiction over properties in the city of Schwabach. The notary district of Middle Franconia includes Schwabach; notaries in the region can certify the authorization for cancellation and submit the application to the Land Registry Office. Processing times at the Schwabach Land Registry Office are four to eight weeks in 2025/2026.

Procedure: Step by Step from Repayment to Discharge

The process from full repayment to the discharge of the land registry entry comprises several clearly structured steps:

Step	Who	Timeframe	Special Note
1. Repay the loan in full	Owner	-	Have the final payment confirmed
2. Obtain proof of repayment	Owner (from bank)	Immediately after repayment	Request written confirmation
3. Request authorization for deletion	Owner (from bank)	Immediately after repayment	Written request recommended
4. Bank issues LB	Bank	2-6 weeks	Certified or notarized form
5. Deed of Release + Application to the Land Registry	Notary or owner directly	Upon receipt of the Deed of Release	Notary facilitates processing
6. Land Registry enters cancellation	Schwabach Land Registry	4-8 weeks	Depending on workload
7. New land registry extract	Owner (application)	After cancellation	Inspection or certified copy

Source: WEG Act (as of WEG Reform 2020 + 2026 amendments), BGB, GNotKG table, Bavarian Justice Portal, Nuremberg/Fürth/Erlangen Land Registry Office, as of Q1/Q2 2026.

Proof of Repayment: Before requesting the deletion authorization, the owner should obtain written proof of repayment from the bank. This confirms that the loan has been fully repaid and that no further claims exist. Without this proof, the bank cannot issue a deletion authorization, as it must formally verify that no remaining liabilities actually exist.

Request and Issuance: The discharge authorization must be issued at the owner’s request. Most banks issue it within two to six weeks; it may take longer for foreign banks or banks in liquidation. If the bank does not respond, a formal written reminder with a deadline (14 days) is recommended. As a last resort, legal action may be taken to compel the issuance of the cancellation authorization.

Submission to the Land Registry Office: The application for cancellation and the cancellation authorization may be submitted directly to the Schwabach Local Court. In practice, a notary is often engaged to review the documents, authenticate the signatures if necessary, and file the application.

Costs: GNotKG Table and Land Registry Fees

Amount of Land Charge	Basic Fee (GNotKG Table B)	Half Fee (Deletion)	Notary Certification	Total
€50,000	€165	€82.50	approx. €20-40	approx. €100-125
€100,000	€273	€136.50	approx. €20-40	approx. €157-177
€200,000	€435	€217.50	approx. €25-50	approx. €243-268
€300,000	€535	€267.50	approx. €30-60	approx. €298-328
€500,000	€935	€467.50	approx. €40-80	approx. €508-548

Note: According to the German Land Registry Fees Act (GNotKG), a land registry fee equal to half the transaction value (mortgage amount) is charged for the cancellation of a land charge. In addition, notary fees may apply for certification and filing. Transaction value €100,000 → basic fee €273; €500,000 → basic fee €935.

> The valuation tool from leadmarkt.ch shows you the current market value of your property in Schwabach - once the land charge is deleted, the land register is unencumbered and the value can be determined without restriction.

Common Mistakes and Pitfalls

Mistake 1: Confusing the proof of repayment with the cancellation authorization: The bank’s proof of repayment only confirms the payment; it does not replace the cancellation authorization. For deletion from the land register, only the cancellation authorization in the prescribed form (§ 29 GBO) is required.

Mistake 2: Registered land charge without the certificate: In the case of a registered land charge, the original land charge certificate must be submitted to the land registry office in addition to the authorization for cancellation. If the certificate has been lost, a public notice procedure must first be initiated in accordance with §§ 1162 BGB, 946 ff. ZPO. This procedure takes six to twelve months and incurs court fees as well as costs for public notices in the Federal Gazette.

Mistake 3: Sale with pending cancellation: Anyone selling a property before the cancellation of the land charge has been completed must address the cancellation in the purchase agreement. Typically, the seller bears the costs of the cancellation and the notary coordinates the process: The bank issues the cancellation authorization on a step-by-step basis against payment of the purchase price; the cancellation takes place after the transfer of ownership.

Mistake 4: No reactivation possible after accidental cancellation: If a land charge is accidentally canceled that the owner intended to reactivate for future financing, a new land charge must be established-incurring new notary and land registry fees. Reversing the cancellation is generally not possible.

Mistake 5: Multiple land charges - incorrect order: Anyone with multiple land charges in the land registry who wishes to delete one of them should pay attention to the order of priority. The land charge with higher priority places a greater burden on the property; the first-ranking land charge is the most valuable security for banks. Deleting the first-ranking land charge automatically improves the ranking of the subordinate ones.

Local Nuance: Schwabach and the Regional Real Estate Market

Schwabach, as an independent city with a long history (city rights since 1808), has a thriving local real estate market with stable prices. Purchase prices for single-family homes in 2025 ranged from €350,000 to €600,000, and for condominiums from €2,600 to €3,800 per square meter of living space. This price level typically corresponds to land charges of €200,000 to €450,000 for standard financing.

The Schwabach Land Registry Office, as part of the Schwabach Local Court, has processing times of four to eight weeks for deletion requests in 2025/2026. Owners planning a sale should request the deletion authorization from the bank well in advance-ideally three to four months before the scheduled notary appointment-and not wait until after the purchase price negotiations.

In Schwabach, there are still many existing properties from the 1970s and 1980s on the market for which older registered land charges from historical financing are entered in the land registry. These should be analyzed prior to a sale and, if necessary, converted into book land charges or deleted to ensure a smooth notary appointment.

Conclusion for Property Owners in Schwabach

The deletion of a paid-off land charge is a straightforward but sometimes time-consuming process. Property owners who do not need their land charge for future financing should proactively pursue its deletion-especially before a planned sale. The costs are manageable (half the fee under the GNotKG plus certification costs), and a cleared land register increases the transparency and marketability of the property.

Before selling your Schwabach property after the land charge has been discharged, it’s worth using the valuation tool from leadmarkt.ch-it takes into account the current market situation in Schwabach and provides you with a solid price guide.

Leaving the Land Charge in Place: Consider the Security Agreement

Anyone who does not immediately discharge their land charge should be aware of the security agreement. The security agreement is a contract under the law of obligations between the borrower and the bank that specifies which claims the land charge secures. Once the loan is fully repaid, the land charge loses its security purpose-the bank is then obligated to issue a cancellation authorization, even if the land charge is still formally listed in the land register.

Practical consequence: Even a land charge that is still registered cannot secure any further claims by the bank after repayment, provided the security agreement is worded narrowly enough. Have the security agreement reviewed by a notary-in some older loan agreements, the security purpose is broadly defined and covers “all current and future claims arising from the banking relationship.”

Loan Refinancing: Assigning the Land Charge Instead of Deleting It

If you refinance your loan-that is, switch to another bank-there is an efficient alternative to deletion and re-registration: the assignment of the land charge. The old bank assigns the land charge to the new bank (Section 1154 of the German Civil Code). The costs are significantly lower than cancellation plus re-registration, as no new land charge registration with a notary is required.

Option	Cost	Time required
Cancellation + New registration	0.8-1.0% of the land charge amount	4-8 weeks
Assignment of the existing land charge	0.2-0.3% of the land charge amount	2-4 weeks
Retain the land charge (same bank)	none	immediately

Assignment makes particular sense if the remaining principal is high (e.g., over €100,000) and the debt restructuring takes place within the fixed-interest period or after a 10-year period has elapsed. For registered land charges, the certificate is physically handed over; for unregistered land charges, the assignment is effected by a notarial deed and entry in the land register.

Land Charges and Divorce: A Special Situation in Schwabach

If a property is jointly owned by spouses as co-owners and the loan has been repaid, but a divorce affects the jointly owned property, the authorization for cancellation becomes an important tool in the context of the division of assets. Both co-owners must act jointly before a notary to apply for cancellation-even if one of the partners has no interest in the cancellation.

The Schwabach Local Court, as the land registry office, cannot carry out a unilateral cancellation. If one partner refuses to cooperate, the only recourse is to take the matter to family court (the Nuremberg-Fürth Regional Court as the appellate court) to enforce the obligation to cooperate. This circumstance highlights how important it is to have clear provisions in the divorce settlement.

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