Land Charge (Grundschuld)
Land charge (Grundschuld) explained: difference from a mortgage, registration in the land register, and significance in German property financing.
Financial
§ 1191 ff. BGB
Also known as: non-accessory land charge, real estate lien
The Grundschuld (land charge) is the most important type of real property lien used in practice to secure real estate loans under German law. Unlike a mortgage (Hypothek), it is not tied to a specific claim (non-accessory), making it more flexible. A distinction is made between the registered land charge (Buchgrundschuld) and the certificated land charge (Briefgrundschuld). (§ 1191 ff. BGB)