Document background
The Mortgage Assumption Agreement is a crucial document in German real estate financing that enables the transfer of existing mortgage obligations to a new party. This agreement is commonly used in property sales where the buyer wishes to assume the seller's existing mortgage, in family property transfers, or in corporate restructuring involving real estate assets. The document must comply with German civil law requirements, particularly the provisions of the BGB regarding debt assumption (Schuldübernahme) and mortgage rights (Hypothekenrecht). It includes detailed information about the property, existing mortgage terms, parties involved, and requires registration in the Grundbuch (land register). The agreement must be notarized and typically requires the lender's explicit consent. It serves to document the transfer of obligations while protecting the interests of all parties involved, including the original borrower, the assuming party, and the lender.
