Verkehrshypothek und Sicherungsgrundschuld

The creation of § 1192, para. 1a of the Bürgerliches Gesetzbuch (Germany’s civil code) through the Risk Limitation Act (Risikobegrenzungsgesetz) has gradually improved the opportunities for material debtors to object to land charges. In contrast, the law relating to mortgages has remained unchanged with the result that it has in part lost its model character. This study first presents the similarities and differences between mortgages and land charges with regard to the justification of obtaining credit security and then focuses in detail on the opportunities to object to the use of in rem jurisdiction before and after the Risk Limitation Act came into effect. In doing so, the study explains the developments in case law in this regard and alternatives to the creation of § 1192, para. 1a of the Bürgerliches Gesetzbuch, and in conclusion addresses the question of improving debtor protection.