Compulsory establishment of a lien

Compulsory establishment of a lien

The compulsory establishment of a lien is one of three enforcement measures available for the execution on immovable property. Unlike compulsory administration, which covers the ongoing income of a property, and compulsory auction, which aims to sell the asset, the compulsory establishment of a lien provides the creditor with an enforceable lien, but no immediate monetary satisfaction.

The means of execution is regulated in § 88 EO. According to this provision, the compulsory creation of a lien can be carried out on a property, a share in a property, a building on leased land, or a building right of the obligated party.

The compulsory establishment of a lien according to § 88 EO explained: Prerequisites, procedure, effects, and rights of creditor and debtor.

Parties to the Compulsory Establishment of a Lien

In the compulsory establishment of a lien, two parties are involved. The enforcing creditor is the person who holds an enforceable monetary claim and applies for the registration of the lien. The obligor is the owner of the affected property or right. The lien is registered on their asset and secures the claim of the enforcing creditor.

Application for Enforcement

The compulsory creation of a lien is initiated with an application for execution. The execution takes place through the entry of the lien in the land register on the property of the obligated party to be specified.

The district court that administers the land register of the property concerned is responsible for authorization and enforcement. The decision on the compulsory creation of a lien is made by the judicial officer.

Execution

Execution is carried out by registering the lien in the land register. The claim for which the lien is registered is explicitly designated as enforceable.

The registration of the lien means that the creditor can enforce their claim against subsequent owners of the property through execution. Thus, the lien remains valid upon a change of ownership.

Annulment or Limitation

The obligated party may request that the compulsorily created lien be lifted or restricted if the creditor receives a greater security as a result than is provided for by law.

A restriction may mean, in particular, that the lien is limited to individual properties or buildings on leased land. The obligated party must prove the reasons for their application.

Rechtsanwalt Peter Harlander Peter Harlander
Harlander & Partner Rechtsanwälte „The strength of the compulsory creation of a lien lies not in rapid access, but in its legally secured existence.“
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Your Benefits with Legal Assistance

A lawyer ensures that the application for enforcement is correctly completed and that all required information and documents are complete. They verify that the formal requirements are met and submit the application to the competent court.

A specialized law firm reliably enforces your claim and avoids delays.

Frequently Asked Questions – FAQ

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