Document background
The Mortgage Letter (Hypothekenbrief) is a fundamental document in German real estate financing, issued by the land registry office (Grundbuchamt) upon the registration of a mortgage in the land register. This document is required when parties choose a mortgage (Hypothek) rather than a land charge (Grundschuld) as their form of real estate security. The Mortgage Letter contains all essential information about the mortgage, including property details, mortgage amount, interest rates, and the parties involved. It serves multiple purposes: proving the existence of the mortgage, facilitating potential transfers of the mortgage, and providing clear evidence of the security interest. The document is particularly relevant in situations where the mortgage might need to be transferred or when formal proof of the mortgage registration is required. Under German law, the physical possession of the Mortgage Letter is crucial for exercising rights arising from the mortgage.
