Land charge cancellation: costs, process and when it is worthwhile

After the loan has been repaid, the land charge is still in the land register. Do you have to cancel it? What does it cost? And is cancellation even the best option? These questions are simpler to settle than many expect.

What is a land charge?

A land charge is a security right held by the bank that is entered in the land register. It gives the bank the right to access the property if the borrower no longer meets their payment obligations. As long as the loan is running and being serviced, the land charge has no effect in everyday life.

Important: the land charge and the loan are legally separate from each other. The loan is the obligation under the law of obligations (the contract); the land charge is the security in rem (the entry against the property). When the loan is repaid, the land charge becomes "unsecured" — it then secures nothing, but remains in the land register.

Land charges should not be confused with mortgages. A mortgage (which is rarer) is tied directly to a particular claim and lapses automatically on repayment. A land charge remains in place until it is actively cancelled.

Cancellation or assignment — which makes more sense?

After full repayment of the loan, you have two options:

Option 1: have the land charge cancelled You instruct a notary to have the land charge cancelled in the land register. The bank issues a "cancellation consent" for this. After cancellation, the land register is "cleaned" — the property appears unencumbered.

Option 2: leave the land charge in place (unsecured) The land charge stays in the land register, but no longer secures anything. You can later have the land charge assigned to a new bank if you take out a new loan. That saves costs: a land charge assignment is cheaper than a fresh registration.

When cancellation makes sense:

• When selling the property — buyers expect an unencumbered property
• When no future borrowing is planned
• When a "clean" land register is important for personal reasons

When leaving it in place / assignment makes more sense:

• When you keep the property and might borrow against it again later
• An assignment is considerably cheaper than a fresh registration for the same land charge amount

Costs of the land charge cancellation

The costs for the notary and the land registry are set by the Court and Notary Fees Act (GNotKG) and are based on the amount of the land charge — not on the value of the property.

Note: this table gives guideline values. The exact fees depend on the GNotKG fee schedule and the particulars of the case. As a rule, a land charge cancellation is one of the cheapest notarial procedures — nothing like the notarisation of a purchase contract.

Details on notary costs overall: Notary costs for a property purchase in Saxony.

Process of the land charge cancellation

1. Request the cancellation consent from the bank. When the loan has been fully repaid, the bank issues a notarially certified cancellation consent. This is often free or costs a small handling fee (20–50 €).

2. Instruct a notary. You can submit the cancellation consent to the land registry yourself (if it is notarially certified) or instruct a notary to handle it for you. Recommendation: instruct a notary, as land registries have strict formal requirements.

3. Land register entry. The land registry carries out the cancellation. Duration: typically 4–8 weeks, depending on the office's workload.

4. Confirmation. You receive a current land register extract confirming the cancellation.

For a better understanding of the land register overall: Understanding a land register extract. For the complete list of all documents needed when selling a property: Which documents do I need?.

If you are unsure whether you should cancel the land charge or leave it in place — I am happy to talk it through with you. In most cases there is a clear recommendation, which depends on your specific plans for the property.