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Real Estate Security Agreement
"I need a German Real Estate Security Agreement for a commercial office building in Berlin, where Deutsche Bank will be the security taker for a €5 million facility agreement to be signed by March 2025, with special provisions for existing tenant rights."
1. Parties: Identification of the security provider (property owner), security taker (typically a bank or financial institution), and any other relevant parties
2. Background: Context of the security agreement, including reference to the underlying loan or credit agreement
3. Definitions: Definitions of key terms used throughout the agreement, including property-specific terminology and security-related concepts
4. Creation of Security Interest: Legal provisions establishing the security interest (Grundschuld or Hypothek) over the property
5. Property Description: Detailed description of the secured property, including land register details (Grundbuch information)
6. Secured Obligations: Description of the obligations secured by the agreement, including maximum secured amount
7. Representations and Warranties: Security provider's confirmations regarding property ownership, absence of encumbrances, and authority to grant security
8. Security Provider Obligations: Ongoing obligations of the security provider, including maintenance, insurance, and information requirements
9. Enforcement Rights: Conditions and procedures for enforcing the security interest, including reference to German enforcement laws
10. Costs and Expenses: Allocation of costs related to creation, maintenance, and enforcement of the security
11. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction of German courts
1. Multiple Properties Provisions: Additional provisions when security is created over multiple properties, including cross-collateralization terms
2. Third Party Rights: Provisions dealing with tenants, other creditors, or third-party rights affecting the property
3. Insurance Requirements: Detailed insurance obligations if not covered in facility agreement
4. Environmental Provisions: Specific environmental warranties and obligations where property has environmental risks
5. Construction Provisions: Additional provisions for properties under construction or development
6. Release Provisions: Detailed provisions for partial release of security if multiple properties are involved
7. Priority Arrangements: Provisions dealing with ranking of security interests if multiple security interests exist
1. Property Description Schedule: Detailed technical description of the property, including cadastral information and land register excerpts
2. Land Register Details: Copy or extract of relevant land register entries (Grundbuchauszug)
3. Form of Notice: Templates for various notices required under the agreement
4. Insurance Requirements: Detailed specifications of required insurance coverage
5. Existing Encumbrances: List of existing encumbrances or rights affecting the property
6. Form of Grundschuld: Template or copy of the land charge certificate (Grundschuldbrief)
7. Powers of Attorney: Forms of any required powers of attorney for security enforcement
Authors
Real Estate
Banking
Financial Services
Property Development
Construction
Commercial Property Management
Residential Property Management
Insurance
Legal Services
Legal
Real Estate
Corporate Finance
Risk Management
Credit Administration
Compliance
Property Management
Asset Management
Transaction Management
Security Administration
Real Estate Finance Manager
Property Lawyer
Banking Lawyer
Credit Risk Manager
Real Estate Portfolio Manager
Property Development Director
Loan Officer
Security Trustee
Compliance Officer
Real Estate Transaction Manager
Corporate Finance Director
Legal Counsel
Finance Director
Property Manager
Asset Manager
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