Pension debt
The pension debt is a burden on the property in the form that a certain sum of money has to be paid out of the property at regularly recurring dates ( pension ). This is a special form of the land charge . The debtor (owner) has the right - after a period of notice of usually six months - to redeem his debt against payment of a one-off amount. The amount of this transfer fee must be determined when the pension debt is ordered and entered in the land register.
The obligee cannot demand the redemption, unless the security of the pension debt is endangered by the deterioration of the property and the endangerment is not removed within a reasonable period. The endangerment can be eliminated by improving the property or by ordering another mortgage .
In Germany, the pension debt is regulated in § 1199 ff. BGB .
If a creditor wants to avoid the debtor being able to exempt himself from the obligation to pay the pension, he has the alternative (in agreement with the debtor) to secure the pension payment by entering a real burden in the land register (Section II).
