Please note that these functions are primarily designed to meet German requirements and may not be relevant to your country.

Encumbrances are claims on real estate that are independent of the property owner. They serve as loan collateral, in other words, the lender can use encumbrances to secure his claims if the borrower cannot meet his obligations (repayments, interest). There are three types of encumbrance:

• Mortgage
• Land charge
• Annuity charge

Whereas a mortgage depends on the corresponding liability position and therefore expires upon repayment, a land charge is not tied to the personal claims of the creditor. Thus, the land charge still serves as collateral after repayment. The annuity charge is a regular annuity that presumes income based on the use of the property, and is hardly suitable as loan collateral.

The encumbrance is secured by means of an entry in the land register, Section III, at the land registry responsible.

Under Loans Management you can manage your own encumbrances and also enter third-party rights. This section covers creating, changing, displaying and deleting your own encumbrances. For information on entering third-party rights in Section III of the land register, refer to the Land register section of the IS-RE Real Estate documentation.

Before you can enter an encumbrance, you must have created a loan and assigned at least one object to the loan. You must also have assigned each object to a land register (see the relevant chapter).

When you have entered the encumbrance information, the system stores it directly in Section III of the relevant land register entry. To ensure that you obtain a realistic picture of the current land register entries, you should wait until you have the land register extract from the land registry before you enter encumbrances.