Grundbuchgesetz

The Grundbuchgesetz (GBG), or Land Register Act, is a fundamental piece of legislation in Germany governing the Land Register. The Land Register is a public register maintained by local courts (Amtsgerichte) that records ownership and other rights pertaining to real estate. Its primary purpose is to ensure legal certainty and transparency in real estate transactions.

The GBG outlines the structure and content of the Land Register, specifying what information must be recorded, such as the owner of a property, its boundaries, and any encumbrances like mortgages or easements. It also details the procedures for making entries and changes to the register, including how ownership is transferred, how rights are established and extinguished, and how disputes are resolved.

A key principle enshrined in the GBG is the concept of public faith or reliance on the Land Register. This means that third parties can generally trust the information contained within the register. For instance, if a buyer acquires property from someone listed as the owner in the Land Register, they are typically protected even if the seller's title was flawed, provided the buyer acted in good faith.

The law also establishes the role of the Grundbuchamt (Land Registry Office), which is responsible for maintaining the register and executing entries based on court orders or applications. The GBG is crucial for the smooth functioning of the German real estate market, providing a secure and reliable framework for property ownership and transactions.