Who needs a bank 2
Property documents: banks want to see that
The basis of any real estate financing is the creditworthiness of the borrower and the property to be lent. In order to be able to determine the value of the property, banks need numerous documents on the property to be lent. Unfortunately, these documents are often incomplete or not in the form required by banks. This can make financing much more difficult or, in the worst case, even impossible. In the following, we will show you which documents banks require and where and how they can be obtained if necessary.
Banks need a number of current property documents for the valuation. Obtaining these documents is actually not a problem. Nevertheless, private real estate sellers and most real estate agents have a surprisingly difficult time with it. With private sellers it is mostly ignorance, with real estate agents it is often pure comfort or indifference.
Land register extract
The excerpt from the land register provides information on the ownership structure and encumbrances or restrictions that are imposed on the property. When buying a property, it is less a matter of whether there are still any land charges in the land register, because the property is usually handed over "free of encumbrances". Much more important are entries in section 2 of the land register, ie the so-called "encumbrances and restrictions". These can be residential or usufructuary rights (which are usually deleted when purchasing a property), but also management rights and rights of way. Such burdens and restrictions can have an impact on the property's value (e.g. a right of way). So banks need one complete and uncertified extract from the land registerthat is not older than 3 months. Obtaining a land register excerpt from the responsible land registry office (district court) costs around 10 euros (we can procure land register extracts nationwide online).
Land map / site plan
The official land map shows the exact location of the property and the "official address" (parcels). The property is shown there "according to official measurements". It is worth taking a closer look here, because in the case of buildings or parts of buildings that are not shown there, the question arises whether they have been approved at all. In addition, the land map can be used to identify distances to property boundaries or neighboring buildings, as well as the utilization of the property area. The same applies here: the land card must not be older than 3 months. The procurement of such a land card costs (depending on the federal state) about 10-60 euros.
Note: a simple extract from the so-called property card is usually not enough for banks!
The floor plans of a building or an apartment provide information about the size (living and usable area) as well as the division of the rooms (arrangement in the building). This data / information has a direct influence on the valuation. In the case of houses and apartments with so-called "trapped rooms", corresponding deductions will be made in the property value. And of course, such plans are also important for potential buyers. Only on the basis of these plans can it be seen whether the information provided by the seller and / or agent with regard to the residential and usable areas is correct.
Banks need "dimensioned floor plans" with the stamp / signature of the person who created the floor plans (architect). Most banks generally do not (any longer) accept floor plans that they have created themselves (including those made by a broker). These floor plans are part of the building file and can be obtained from the building authority (which can take up to 4 weeks). For older buildings (built before 1945) there may be no files because the documents were lost during the war. If the floor plans cannot be obtained from the building authority, a service provider (e.g. architect) must be commissioned to create the relevant drawings. The costs for this are around 250-500 euros for a single-family house or a condominium. However, there are also service providers who put their own floor plans into the "correct form" (costs approx. 100 euros).
Sectional drawings / views
The section through the building provides information about the ceiling heights and the roof pitch angle, among other things. This also has an impact on the valuation, because especially with attic floors, areas are added to the living space depending on the height or not taken into account (e.g. not at all up to 1 m ceiling height).
The elevation drawings show how the building should / can look from the outside. It is always advisable to go ahead if, for example, no dormers are to be found there, but they are actually there. The question arises as to whether these dormers are approved or have been added "black" later. These view drawings are also part of the building file (because they are part of the building permit or building notice).
The same applies to the sectional drawings and views as to the floor plans: they are worthless without the stamp / signature of the respective architect (or similar).
The building description contains information on the construction and equipment of a property. Is the building a solid house ("stone-on-stone") or a timber frame house? Are the ceilings made of wood or concrete? Do you heat with oil or gas? Are the windows made of wood or plastic? These and other questions are answered by means of the building description. This building description is also part of the building permit or building notice and thus part of the building file (and apart from that also part of every house building contract). For older buildings that have been modernized in the meantime, the official building description can be supplemented with your own (we have the appropriate forms for this).
Calculation of living space
The calculation of the living space is of course the A&O in the valuation by the banks. This is a table in which the individual rooms are listed with the respective area. This list is part of the building file, but you can also create it yourself using the floor plans (most floor plans indicate the area per room).
Some banks do without this calculation of living space and base their valuation on the so-called gross floor area.
Condominium: declaration of division
The declaration of division defines the ownership structure within the community of owners. There it is regulated which areas are jointly owned and which are private property. First of all, the apartment itself is special property, but this can also include basement rooms or underground parking spaces.
Important: the declaration of division always includes a so-called Allocation plan. These are the floor plans of the building in which the apartments and basement rooms etc. can be found with the respective apartment number. This distribution plan is often missing, but it is a very important document when buying a condominium. If the plans are missing: they are available from the responsible land registry (at the local court).
Extract from the building directory
The building register provides information on whether the property is burdened with so-called building loads from neighboring properties. Such encumbrances can be relevant for the assessment of the property value. The building load register is kept by the responsible building authorities. The major exceptions are Bavaria and Brandenburg. In Bavaria there is no building load register (restrictions are there in the land register). In Brandenburg there was no building load register between 1994 and 2016.
As a rule, banks are not interested in the energy pass at all (with the exception of special conditions for particularly energy-saving properties, which is the absolute exception in the German banking market).
Community rules, minutes of owners' meetings
These documents are important for you as a buyer, but the banks are of no interest at all.
Missing documents: we are happy to help our customers!
We have the option of obtaining documents such as extracts from the land register, etc. online. We can also hire an architect to draw up floor plans, calculate living space, etc. However, you must bear the costs for this.
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