Document background
The Lien Release Letter From Bank (Löschungsbewilligung) is a crucial document in German property transactions, typically used when a loan has been fully repaid or when a property is being sold or refinanced. This document is essential for clearing title records in the German Land Registry (Grundbuch) and is required by German law to formally terminate a bank's security interest in a property. The letter must meet specific requirements under the German Civil Code (BGB) and Land Registration Code (GBO), including proper authentication, usually through notarization. It contains detailed information about the property, the lien being released, and explicit authorization for the land registry to remove the entry. This document is particularly important in property sales, refinancing transactions, or when consolidating multiple loans, as it provides legal certainty for all parties involved and ensures proper updating of public records.
