Reading a German land register extract (Grundbuch)

Why the register carries so much weight

§ 892 BGB says that, for someone who acquires a right in land by legal transaction, the content of the register is treated as correct unless an objection is entered or the acquirer knows it is wrong. That protection is the reason the entries matter, and the reason a buyer should read them before signing rather than rely on a verbal description. A Vormerkung (priority notice), protected by § 883 BGB, is also entered there; the guide on the priority notice describes its effect.

How a sheet is organised

§ 4 of the land register ordinance (GBV) says each sheet consists of the heading (Aufschrift), the inventory (Bestandsverzeichnis) and three sections.

Heading. It states the district court, the register district and the volume and sheet number (§ 5). It is how the sheet is found, nothing more.

Inventory. It describes the plot. Column 3 gives the land-survey designation: the cadastral district (Gemarkung), the plot designation and, where available, the type of use and the location, such as street and house number; column 4 gives the size according to the official register (§ 6). Check that the street address on the extract matches the property you visited and that the area matches the floor plan. Co-ownership shares in a shared plot are entered in the inventory under their own rules (§ 8 GBV); for flats, see the guide on buying a condominium.

Section I, owners. It lists the owner or owners, with the legal relationship between co-owners where relevant, and in column 4 the date of the transfer agreement or other basis for the entry and the date of registration (§ 9). The seller named here must be the person who signs. If there are several owners, all of them have to take part.

Section II, burdens and restrictions. It holds all burdens other than mortgages, land charges and annuity charges, together with notices and objections relating to them; also restrictions on the owner’s right to dispose of the property, and priority notices and objections concerning ownership (§ 10). Look here for every burden on the plot and for any notice already protecting another claim.

Section III, mortgages and land charges. It lists Hypotheken, Grundschulden and Rentenschulden, with the amount of each right in column 3 (§ 11). The seller’s lender usually appears here. The figure is the amount of the right, which is not the same as the balance of any loan it secures, because a Grundschuld does not presuppose a claim (§ 1192 BGB). The guide on the land charge explains this.

Deletions are entered in their own columns of each section (§ 10(6), § 11(7)), so read those columns too before concluding that a right still exists.

Who may see it

Under § 12 GBO inspection of the register is allowed to anyone who shows a legitimate interest. The same goes for documents referred to in an entry and for pending applications. Anyone entitled may obtain a copy, certified on request. A prospective buyer with a real intent to purchase will normally be able to show an interest; practically, the seller or the notary often supplies the extract, and the notary informs himself of the register content before notarising (§ 21 BeurkG). Each inspection is logged, and the owner may ask for information from the log (§ 12(4) GBO).

What to check before you sign

1. The owner in Section I is the seller, and no one else needs to consent.
2. Section II: every entry is explained in the contract or removed.
3. Section III: the seller’s loans will be paid and deleted from the price, as the contract provides. Under § 442(2) BGB the seller must remove a right entered in the register, even if you know about it.
4. The inventory matches the property, including its size and address.

If the property is let, the register will not tell you the terms; ask for the lease, because § 566 BGB makes the buyer take over the tenancy. The wider checklist is in the guide on checks before buying a home.

Which professional to consult

The notary informs himself of the register content before the signing (§ 21 BeurkG) and must explain the legal consequences of the deed (§ 17 BeurkG); see notary. A lawyer of your own choosing can read a complicated sheet for you, and a property valuer can assess how a burden affects value.