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A Lien Payoff Letter is a crucial document in German property and lending transactions, used when a property owner or their representative needs to settle and remove a lien (Grundpfandrecht) from a property. This document is essential in various scenarios, including property sales, refinancing, or full loan repayment. Under German law, particularly the Bürgerliches Gesetzbuch (BGB) and Grundbuchordnung (GBO), the Lien Payoff Letter must contain precise information about the payoff amount, payment terms, and conditions for lien release. It serves as an official communication between the lienholder and the party seeking to satisfy the lien, providing legally binding information necessary for property transactions and lending operations. The document is particularly important as it facilitates the clean transfer of property titles and ensures compliance with German property and banking regulations.

1. Sender Information: Complete details of the lienholder/creditor, including registration numbers and authorized signatory

2. Recipient Information: Full details of the debtor and any authorized representatives

3. Property Identification: Detailed description of the encumbered property, including land register details (Grundbuch information)

4. Loan/Lien Reference: Reference numbers for the loan and lien, including the date of original registration

5. Payoff Amount: Detailed breakdown of the total payoff amount, including principal, interest, and any fees

6. Validity Period: Statement of how long the payoff amount remains valid

7. Payment Instructions: Detailed banking information and required payment procedures

8. Release Terms: Conditions and process for releasing the lien upon receipt of payment

9. Confirmation: Statement confirming this is an official payoff letter and signature block