Is the entitlement to a background to a land charge?
Who doesn't know that? A property was acquired years ago. The purchase price was financed by a bank loan or an employer loan or a loan of a rich patron and a land charge entered. At some point the loan was paid off. And suddenly life began to be fun: no more repayments, no interest, instead of traveling, watches and festivals!
The years went into the country.
Then the property is sold. The clause is almost hidden in the purchase contract: any basic lien should be replaced from the purchase price. The notary is authorized to regulate everything. - No problem. Everything is repaid.
Really no problem?
No problem. Only suddenly a five or six or seven-digit amount is missing from the purchase price.
Treacherous entries in the land register
The reason: the land charge was still in the land register. The notary demanded the deletion permit from the elementary debut. And the creditor granted the deletion permit on the condition that the amount of his land charge claim from the land register was paid out from the purchase price. And the seller then lacks this amount.
Now one may think: everything wrong! The loan was paid off. The land charge was in the land register for nothing.
Might be. But the land charge was in the land register and it was approved . The creditor therefore had the right to request the amount of money. And the objection that the land charge was to be transferred back to the owner due to the repayment of the loan debt - when ten years had gone into the country. The creditor can refuse to delete.
Then the creditor raises the question of how he can exploit the land charge entered in the land register. And for the owner of the property, the question arises as to how he adjusts the land register as possible.
In any case, it is clear that as long as the land charge is in the land register, it is taken into account both in the case of a compulsive auction and discourages any prospective buyer. The landlord entered in the land register therefore has something in hand. On the other hand, the owner can object that the entry in the land register is only a pure book position, without any equivalent.
Of the puzzle solution? A consultation with your lawyer.
