Document background
A Final Release of Lien is a critical document in German property law that formally terminates a security interest in real property. This document becomes necessary when a secured debt has been fully paid off or when a lender agrees to release their security interest in a property. The release must comply with German Civil Code (BGB) requirements and the German Land Registry Act (Grundbuchordnung), requiring specific formalities including, in many cases, notarization. The Final Release of Lien includes detailed information about the property, the original lien, and explicit authorization for the land registry to remove the registered security interest. It's commonly used in property sales, refinancing situations, or when loans are paid in full, providing crucial documentation for property owners and subsequent lenders to verify that the property is free from specific encumbrances.
