Encumbrances in the land register: maintenance, life annuity, support

In Hersbruck and the Nürnberger Land district, real encumbrances in the land register are not a relic of the past. Particularly in cases of farm transfers, transfers of retirement provisions, and intra-family asset transfers, care obligations, life annuities, and maintenance rights continue to be secured as real encumbrances in the land register. Anyone who buys a property or inherits it must understand what a registered real encumbrance means-and what it costs in the long term.

Legal Background: Real Encumbrances under Sections 1105 et seq. of the German Civil Code (BGB)

The German Civil Code regulates real encumbrances in Sections 1105-1112 BGB. Section 1105(1) BGB defines: A parcel of land may be encumbered in such a way that recurring payments from the land are to be made to the beneficiary (real burden).

The essential characteristics are the in rem effect (the real burden is attached to the land itself, not to the person of the owner), the recurring payments (as opposed to a one-time payment), and the transfer to legal successors (every acquirer automatically assumes the obligation). Unlike a mortgage or land charge, the owner does not owe a lump sum of money, but rather periodic payments-which makes valuation more complicated for buyers.

The real burden arises through agreement and registration in the land register (Section 873 BGB). The agreement must be notarized; registration in the land register requires a corresponding application to the land registry office.

The Hersbruck Land Registry Office (part of the Hersbruck Local Court) maintains the land registers for Hersbruck and the surrounding municipalities of the Nürnberger Land district. The Notary District of Middle Franconia is also responsible for this area.

The right of residence under § 1093 BGB must be distinguished from a real burden; it is registered as a limited personal servitude and grants the beneficiary the right to occupy the building or parts thereof. In practice, the right of residence and the care encumbrance are often combined: the right of residence secures housing, while the care encumbrance secures care services. Both rights must be entered separately in Section II of the land register.

Practical Forms: Care Encumbrance, Life Annuity, and Right of Residence

The most common forms of encumbrance in the Hersbruck real estate market are:

Care Encumbrance: The owner of the property undertakes to care for and provide for a specific person (often the transferring parents). The scope of services should be precisely described in the contract of establishment: household management, personal care, accompanying the beneficiary to medical appointments, purchasing groceries, etc. In practice, disputes often arise regarding the scope of care owed when the beneficiary’s need for care increases. An adjustment clause for increased care needs (e.g., upon classification into care levels 3-5) is therefore recommended.

Life Annuity Obligation as a Real Burden: A monthly cash payment is secured as a real burden. This is particularly common in farm transfers in exchange for a life annuity. In the Hersbruck area, which is historically characterized by agricultural estates, such arrangements are still frequently encountered.

Residential real burden: A combination of the right of residence (Section 1093 BGB) and the owner’s maintenance obligations. The beneficiary may reside in a portion of the house free of charge, and the owner bears the operating costs and, if applicable, maintenance costs for that area.

Type of real burden	Content	Valuation basis	Typical term
Care servitude	Personal services (care, housekeeping)	Annual care value × Capitalization factor	Until the beneficiary’s death
Life annuity (cash)	Monthly cash payment	Annual amount × Present value factor	Until the beneficiary’s death
Real burden in kind	Delivery of groceries, etc.	Annual monetary value × factor	Agreed term or for life
Real burden of residence	Free housing + assumption of costs	Local market rent + share of costs × factor	Until the death of the beneficiary

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

Depreciation: How Real Burdens Are Factored Into Real Estate Valuation

The Nuremberg Region Appraisal Committee takes real burdens into account when determining market value through capitalization. The present value of the real burden is calculated by multiplying the annual value of the benefit by the age-dependent multiplier derived from the mortality tables of the Federal Statistical Office.

For a long-term care encumbrance in favor of a 72-year-old person with a statistical life expectancy of approximately 15 years and an annual care cost of €12,000, the present value amounts to approximately €120,000-150,000 (depending on the selected capitalization rate). This amount reduces the market value of the property accordingly. With a property value of €350,000, the real burden for long-term care would reduce the market value to approximately €200,000-230,000-a significant discount that buyers must factor in.

> If you would like to know how a registered real burden affects the market value of your property in Hersbruck, the valuation tool from leadmarkt.ch provides an initial data-driven overview.

Buyers of properties with registered real encumbrances should carefully examine the remaining term of the encumbrance (depending on the beneficiary’s life expectancy) and the value of the obligation. In some cases, a buyout agreement with the beneficiary may make more financial sense than assuming the long-term obligation-especially if the beneficiary is still young and healthy.

Redemption and Cancellation of a Real Burden

A real burden can be redeemed at any time by agreement: The owner and the beneficiary agree on a one-time redemption payment that covers the present value of the remaining payments. The beneficiary then issues the cancellation authorization, and the land registry office enters the cancellation.

Upon the death of the beneficiary, a real burden registered for the duration of their lifetime expires. The owner must apply to the land registry office for cancellation and provide proof of death via a death certificate. Without an active application, the real burden remains registered in the land registry-even if it has expired under substantive law.

Anyone wishing to sell a property with such an expired but not yet deleted real encumbrance should obtain the deletion before the sale. A land registry extract with outdated entries significantly complicates purchase negotiations and can deter buyers-even if the real encumbrance is demonstrably expired.

Local Nuance: Hersbrucker Alb and Agricultural Estates

Hersbruck is located in the Nürnberger Land district on the Pegnitz River and serves as the gateway to the Hersbrucker Alb. The region is characterized by a mix of commuter living toward Nuremberg and historically developed agricultural structures. Farms and larger estates that have been family-owned for generations are frequently transferred within the family in the region-often in exchange for a life annuity or with a care-related real burden.

These transfer models have a long tradition among the rural population of Franconia and are economically attractive because they allow for the transfer of property without immediate cash outlay. The challenge lies in the legal structuring: a care obligation described too vaguely leads to disputes when the beneficiary’s need for care increases. A detailed care plan in the appointment agreement and professional advice from a notary in the Middle Franconia notarial district are essential.

The Hersbruck Local Court, as the local court for the northern part of the Nürnberger Land district, regularly deals with disputes regarding the scope of services under real burdens. Case law from this region is relatively consistent and aligns with the Federal Court of Justice (BGH) principles for interpreting establishment agreements. For owners who fear disputes over a real burden, seeking legal advice early on is recommended.

Conclusion for Owners in Hersbruck

Real encumbrances are a common instrument for anticipated succession and retirement planning in the rural Nürnberger Land region. Anyone who purchases or inherits a property encumbered by a real encumbrance automatically assumes the obligation to perform. A careful review of the land register extract, Section II, and a realistic assessment of the present value of the obligation are mandatory before any transaction.

Before buying or selling a property encumbered with a real estate charge in Hersbruck, we recommend using the valuation tool from leadmarkt.ch for an initial market orientation-followed by detailed consultation with a notary regarding the valuation and, if necessary, the redemption of the registered charge.

Tax Treatment of Real Burdens

For the owner of the encumbered property, the expenses associated with a maintenance real burden or life annuity obligation are tax-relevant: If the property is rented out, the payments can be deducted as income-related expenses from rental and leasing income (§ 21 EStG). In the case of a real estate encumbrance involving personal services, the deductibility must be assessed on a case-by-case basis-here, it depends on the specific economic connection to the rental income.

For the recipient of benefits from a life annuity obligation, the following applies: The income portion of the life annuity is taxable under § 22 EStG. The income portion is determined by the age of the annuity recipient at the start of the annuity. If the annuity begins at age 72 or older, the income portion amounts to only 13 percent of the annual annuity-the remaining 87 percent remains tax-free. This tax advantage makes the life annuity a particularly attractive retirement model for older grantors.

In contrast, no tax liability is imposed on the recipient for long-term care benefits-long-term care services are not considered income for tax purposes. Therefore, anyone who agrees to a long-term care annuity instead of a life annuity does not incur a tax disadvantage for the recipient.

Notaries in the Middle Franconia notarial district regularly point out these tax differences when drafting transfer agreements and recommend choosing the economically and fiscally more favorable option depending on the situation.

Real Burden and Social Assistance Recourse: What the Social Services Office Is Permitted to Do

If the beneficiary of a real burden receives or applies for social assistance, the Social Services Office examines whether the real burden is to be considered an asset or income and whether recourse to the benefits is possible.

Basic rule: The right to receive care or support services is a personal entitlement. It is not readily subject to garnishment and cannot be transferred to the social welfare office-unlike, for example, monetary claims or bank account balances. A care real burden protects the beneficiary from the social welfare office’s reach, as the service is provided in the form of personal care.

In the case of a cash annuity (life annuity obligation as a real burden), the social welfare office may, pursuant to § 93 SGB XII, transfer claims and require the annuity beneficiary to assign their annuity claims to the office. The cash annuity is considered income that is counted toward social assistance.

For families who have transferred a property with a real burden for care in favor of a parent and are wondering whether the social welfare office can seize it in the event of a later need for care: The real burden for care protects the right of residence and personal care services. Maintenance in the form of services is not subject to transfer.

---

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