Discharge of Encumbrances
The removal of existing register burdens so that the buyer receives an unencumbered property, in particular the deletion of mortgages.
If the property is burdened with a mortgage, the discharge of encumbrances ensures that the buyer receives an unencumbered register sheet. To this end the seller’s bank issues a deletion declaration once the outstanding claim has been settled.
In practice the escrow agent handles the discharge: from the purchase price he first pays off the mortgagees, obtains their deletion receipt and only then transfers the remaining amount to the seller.
Legal basis
Statutory texts for orientation; the version in force at the relevant time prevails.
This explanation gives a general overview of Austrian law and does not replace advice in an individual case. The specific circumstances of your property purchase are always decisive.
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Mortgage / Lien (Pfandrecht)
A right in rem securing a debt against the property; it entitles the creditor to satisfy the claim from the land if the debtor fails to pay.
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Escrow Agent (Treuhänder)
An independent person of trust (usually a lawyer or notary) who holds the purchase price and releases it only once the agreed safeguards are in place.
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Land Register
The public register of land and the rights attached to it, kept by the district courts; it enjoys public faith, so a good-faith buyer may rely on its contents.
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Registration of Title (Einverleibung)
The unconditional entry of a right in the land register; through it ownership or another right in rem is definitively acquired.
Reviewing a contract, arranging escrow, securing handover?
When buying property, the contract and the land register decide. Call us directly or send an email, callback within one business day.
A direct line to the firm.
Address
BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg
Phone
+43 662 6280000