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Mortgage And Promissory Note Template for Germany

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Key Requirements PROMPT example:

Mortgage And Promissory Note

"I need a Mortgage and Promissory Note governed by German law for a €5 million syndicated loan facility secured against three commercial properties in Berlin, with closing expected in March 2025."

Document background
The Mortgage And Promissory Note (Grundschuld und Schuldverschreibung) is a fundamental instrument in German real estate financing, used when providing secured lending against real estate assets. This document type is essential for both commercial and residential property transactions in Germany, combining the security aspect of a property charge with the debt documentation requirements of German law. It is typically used when a lender requires strong security over real estate while maintaining flexibility in the underlying debt structure. The document must be notarized and registered in the German Land Register (Grundbuch) to be effective, and it includes detailed provisions regarding the secured property, payment terms, enforcement rights, and obligations of all parties. This instrument is particularly valued in the German market for its robust security structure and its ability to be used across various financing scenarios, from simple residential mortgages to complex commercial real estate transactions.
Suggested Sections

1. Parties: Identification of the lender (typically a bank), borrower, and any guarantors

2. Background: Context of the loan agreement and purpose of the mortgage

3. Definitions: Key terms used throughout the document

4. Property Details: Legal description of the mortgaged property, including land register details (Grundbuch information)

5. Loan Amount and Terms: Principal amount, interest rate, and repayment terms

6. Creation of Security Interest: Establishment of the mortgage (Grundschuld) and its registration requirements

7. Promissory Note Terms: Specific terms of the promissory note including payment obligations

8. Interest Provisions: Detailed interest calculation methods and payment schedules

9. Representations and Warranties: Borrower's confirmations regarding property ownership, authority to enter agreement, etc.

10. Borrower Covenants: Ongoing obligations of the borrower regarding property maintenance, insurance, etc.

11. Events of Default: Circumstances that trigger default and enforcement rights

12. Enforcement Rights: Lender's rights and procedures in case of default

13. Costs and Expenses: Allocation of costs including registration, notary fees, and enforcement costs

14. Notices: Communication requirements and contact details

15. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

Optional Sections

1. Multiple Property Provisions: Additional provisions when multiple properties secure the loan

2. Priority Agreement: Required when there are multiple charges on the property

3. Special Repayment Terms: Provisions for early repayment or special payment arrangements

4. Construction Provisions: Required when the mortgage relates to property under construction

5. Assignment Provisions: Terms governing the transfer of the mortgage or promissory note

6. Consumer Protection Clauses: Required when the borrower is a consumer rather than a business

7. Cross-Default Provisions: Links to other financing agreements if part of a larger facility

8. Insurance Requirements: Detailed insurance obligations beyond standard requirements

Suggested Schedules

1. Property Description Schedule: Detailed legal description of the property including maps and land register excerpts

2. Payment Schedule: Amortization table showing principal and interest payments

3. Form of Promissory Note: Template of the promissory note to be issued

4. Insurance Requirements: Detailed specifications for required insurance coverage

5. Land Register Documentation: Copies of relevant Grundbuch entries and registration forms

6. Property Valuation: Professional valuation report of the secured property

7. Existing Encumbrances: List of existing charges or encumbrances on the property

8. Required Notices and Forms: Templates for various notices and forms required under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















































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Relevant Industries

Banking & Financial Services

Real Estate

Construction & Development

Commercial Property

Residential Property

Agriculture (for agricultural land financing)

Industrial & Manufacturing

Retail

Hospitality & Tourism

Healthcare (medical facilities financing)

Relevant Teams

Legal

Real Estate Finance

Credit Risk

Compliance

Corporate Finance

Property Management

Treasury

Investment

Transaction Management

Portfolio Management

Documentation

Due Diligence

Relevant Roles

Real Estate Finance Manager

Mortgage Loan Officer

Legal Counsel

Property Finance Director

Credit Risk Manager

Real Estate Manager

Banking Relationship Manager

Compliance Officer

Property Developer

Real Estate Investment Manager

Corporate Finance Director

Transaction Manager

Portfolio Manager

Debt Finance Manager

Treasury Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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