Consolidation (property law)

Consolidation occurs regularly when the person entitled and obligated to a right in rem come together in one person. It is thus a sub-case of confusion and leads to extinction.

More important than the principle of consolidation , which is of little practical relevance, is the exclusion of consolidation in the case of rights in rem, regulated in Section 889 of the German Civil Code .

§ 889 BGB reads literally: A right to a third-party property does not expire if the owner of the property acquires the right or the person entitled acquires ownership of the property.

This leads to the practically quite frequent cases of the existence of an owner's land charge or an owner's mortgage . Above all, these remain in their original rank, so that those who acquire priority security for their own property - which of course also remains marketable - can also primarily resell and thus obtain a not insignificant credit option.