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.
A real property lien (mortgage) arises through registration in sheet C of the land register. Usually it secures a bank loan of the seller, so the buyer must clarify whether the property will be handed over free of liens.
Existing liens are settled and deleted in the course of the discharge of encumbrances via the escrow agent. If a lien remains, the property continues to be liable even in the hands of the buyer.
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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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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Discharge of Encumbrances
The removal of existing register burdens so that the buyer receives an unencumbered property, in particular the deletion of mortgages.
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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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Real Charge (Reallast)
A registered burden obliging the respective owner to recurring positive performances, such as maintenance or support payments (e.g. a farming retirement charge).
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