Private Mortgage Contract Template for Germany

The Private Mortgage Contract is a fundamental document in German real estate financing, used when private individuals seek to finance property purchases or refinance existing mortgages. This document must comply with strict German banking regulations and the German Civil Code (BGB), particularly sections §§1113-1190 on mortgage law and §§488-505 on loan contracts. It establishes the legal framework for the mortgage relationship, including the creation of security interests, payment obligations, and enforcement rights. The contract typically requires notarization under German law and must be registered in the land register (Grundbuch). It includes comprehensive consumer protection provisions as required by German and EU regulations, making it suitable for private residential property financing while ensuring the lender's security interests are properly protected.

1. Parties: Identification of the lender and borrower with full legal names, addresses, and registration details if applicable

2. Background: Context of the mortgage agreement, including purpose of the loan and brief description of the property

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Detailed description of the mortgaged property, including land registry details and current registration status

5. Loan Amount and Purpose: Specification of the mortgage amount, purpose, and confirmation of funds usage

6. Interest Rate and Calculations: Details of interest rate, whether fixed or variable, calculation method, and adjustment mechanisms

7. Repayment Terms: Repayment schedule, installment amounts, payment dates, and early repayment provisions

8. Security Creation: Legal creation of the mortgage security over the property

9. Borrower's Representations: Borrower's confirmations regarding their legal capacity, property ownership, and absence of encumbrances

10. Borrower's Obligations: Ongoing obligations including property maintenance, insurance, and payment of taxes

11. Events of Default: Circumstances constituting default and consequences thereof

12. Lender's Rights and Remedies: Rights of the lender in case of default, including enforcement procedures

13. Costs and Fees: Allocation of costs, including registration fees, notary fees, and enforcement costs

14. Notices: Communication requirements and contact details for formal notices

15. Governing Law: Confirmation of German law governance and jurisdiction