Mortgage interest limitation period
May 22, 2011 | 25,00 EUR | answered by Jan Wilking
In the land register there is a claim for compensation from my mother. The document states:
Accordingly, party 1 (my mother) pays daughter Christa the amount of 2,500 DM for the above-mentioned transfer. This amount is due upon Christa M.'s reaching the age of majority and is non-interest bearing until then.
To secure this compensation claim (2,500 DM) of Chr. M., party 1 hereby establishes a compensation mortgage in favor of her daughter, effective immediately, with an interest rate of 5 percent per annum, due on November 25, 1964, including interest, in the amount of 2,500 DM on the real estate listed in the land register of Minden.
This mortgage is now to be paid out as the house is being sold. Are the interest payments time-barred, or does Section 902 of the Civil Code also apply to the interest?
Dear inquirer,
I am happy to answer your inquiry taking into account the description of your situation and your input as follows:
For mortgage interest according to § 1115 BGB, the non-expiry regulated in § 902 paragraph 1 sentence 1 BGB does not apply, as it concerns overdue recurring payments. According to § 902 paragraph 1 sentence 2 BGB, mortgage interest is therefore subject to regular limitation periods (§§ 195ff BGB) and may therefore be time-barred in your case.
I hope to have provided you with a helpful initial orientation. If you have any uncertainties, please use the free follow-up function.
Please note that I cannot give you a conclusive advice here within the scope of an initial consultation without knowledge of all circumstances. If you wish for a conclusive assessment of the situation, I recommend contacting a lawyer and discussing the situation with them while reviewing all documents.
Best regards
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