Document background
The Discharge of Mortgage Letter is a crucial document in German real estate transactions, used when a mortgage has been fully repaid or when a property is being sold or refinanced. This document, formally known as a Löschungsbewilligung, must be prepared in accordance with German property law, particularly the regulations set forth in the German Civil Code (BGB) and the Land Registration Act (GBO). The Discharge of Mortgage Letter includes essential information such as the property details, mortgage registration information, and formal declaration of discharge. It is typically required by the land registry (Grundbuchamt) to remove the mortgage entry from the land register, thereby clearing the property's title. The document may need notarial authentication depending on specific requirements and circumstances.
