Investor Guide
2026-10-10 09:19

Löschungsbewilligung (deletion approval): The Seller's Bank Holds the Key to Payment

A Löschungsbewilligung is the approval of a right holder, as a rule the seller's bank, to the deletion of its entry in the land register (Grundbuch). Until the notary holds such approvals for every land charge (Grundschuld) the buyer does not take over, the price is usually not due — and part of it then goes straight to the seller's bank.

What it is

An entry in the land register is made — and deleted — with the approval of the person whose right it affects (§ 19 GBO); the deletion itself is recorded by a deletion note (§ 46(1) GBO). For the right to end, the holder must declare that it gives the right up, and the entry must be deleted (§ 875(1) BGB). The approval must take the form of a public deed or carry a publicly certified signature (§ 29(1) GBO), which means that a notary certifies the signatures of the bank's representatives.
Deleting a land charge also needs the owner's consent (§ 27 GBO), which the seller usually gives in the purchase contract itself. Repaying the loan does not remove the entry. A land charge does not depend on the existence of a debt (§ 1192(1) BGB), so without the bank's approval it stays in the register even after full repayment.

Why it matters to investors

The release from encumbrances (Lastenfreistellung) rests on these approvals. The seller's bank usually hands them to the notary under a trust instruction: the document may be used only once the bank has received a stated sum. The notary gives notice that the price is due only when every such condition can be met out of the price. The buyer then pays the redemption amounts to the banks and the balance to the seller (see Part 8 of the series German Prime Retail). For observing each trust instruction, the notary charges a separate fee — half the full rate, calculated on the amount secured (KV 22201, § 113(2) GNotKG).
The practical conclusion: the closing date depends on how quickly someone else's bank acts. Without the approval the price does not fall due, and the bank's instruction may be time-limited: if the money arrives late, the document can no longer be used. Land charges with a certificate (Grundschuldbrief) carry a separate risk. Deleting such an entry also requires the certificate (§§ 41, 42 GBO), and a lost one must first be declared invalid in a court public-summons procedure (§§ 1162, 1192 BGB). After registration, check a fresh extract to confirm that every entry has been deleted except those you accepted.

What to check

• Section III of the extract: every land charge, its holder and who will approve its deletion.
• The banks' trust instructions: redemption amounts, expiry dates and the conditions for using each approval.
• The seller's consent as owner to the deletions (§ 27 GBO), written into the contract.
• Deletion approvals for the section II entries you do not accept.
• A fresh extract after registration, showing every entry deleted except those you accepted.
Related terms: Lastenfreistellung · Grundschuld · Grundbuchauszug
Sources: BGB §§ 875, 1162, 1192; GBO §§ 19, 27, 29, 41, 42, 46; GNotKG § 113, KV 22201; Gordon Real Estate Group, "German Prime Retail", Part 8. Legal position as of 10 October 2026.
Photo: Alex Block / Unsplash
This entry is general information and not legal or tax advice.