How is it arranged that the seller’s old loan is deleted and my own is registered?
Your co-pilot in real estate law
Mag. Nevena Shotekova-Zöchling
Attorney in Vienna · 16 years of legal practice · Real estate law & purchase contracts
You keep the controls and make the decisions. We sit next to you in the cockpit, know the route and the instruments – and when it gets turbulent, we take over.
Your bank only pays the purchase price if it ranks first in the land register. The seller’s bank only releases its lien once it gets its money. How does that fit together?
The roles
- Seller’s bank: demands payment of the outstanding balance and in return issues a release declaration.
- Your bank: only pays out the loan against an undertaking that its lien will be registered with the agreed priority.
- Escrow agent: accepts both escrow instructions and handles everything step by step, each against the other.
The process
The priority notice for the intended sale (Rangordnung) reserves the rank in the land register for one year. Your loan and your own funds go into the escrow account. The escrow agent pays the seller’s bank, receives the release declaration and files with the land register court: deletion of the old lien, registration of your ownership and registration of your bank’s lien. After registration, the remaining purchase price is paid out to the seller.
Costs
- Registration fee for ownership: 1.1 % of the purchase price
- Registration fee for the lien: 1.2 % of the secured amount
- The temporary fee exemption for a main residence expired on 30 June 2026.
- Deletion of the old lien – usually at the seller’s expense
What to watch out for
Clarify early with your bank which documents it needs and which payout conditions apply. The purchase contract should expressly provide for the release of encumbrances, escrow and registration of the lien – then all steps dovetail without delay.
Step by step
Frequently asked questions
Who makes sure the seller’s loan is deleted?
The escrow agent – usually the lawyer or notary drafting the purchase contract.
How much does registering my lien cost?
1.2 % of the registered secured amount. The temporary exemption for a main residence expired on 30 June 2026.
How long does it take?
Usually a few weeks from signing – depending on the banks and the land register court.
Mag. Nevena Shotekova-Zöchling, attorney and insolvency administrator in Vienna. As of October 2026. General information – not legal advice for your individual case.
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