Discharge of Encumbrances (Freistellung)
Discharge of encumbrances in property sales: Paying off land charges and mortgages - how the process works.
Legal
§ 875 BGB, § 1192 BGB
Also known as: release of liens, encumbrance removal, mortgage discharge
Freistellung (discharge of encumbrances) refers to the process of deleting existing encumbrances (particularly land charges or mortgages) from the land register (Grundbuch). The notary obtains a deletion consent (Löschungsbewilligung) from the seller's bank for this purpose. (§ 875 BGB, § 1192 BGB)