Dear Customer,
Do you have questions about our “Real Estate Consumer Loan Agreement” service? Here, we would like to answer any questions you may have. This information fulfills the requirements of Section 14(1)(2) of the Accessibility Enhancement Act (BFSG). The BFSG is intended to ensure the accessibility of products and services offered by companies. This means that companies must guarantee that all consumers have easy access to the products and services they offer. Consumers should not have to rely on outside assistance to do so. The goal is to enable all consumers to participate fully in society. Please note: This information is intended to explain our “Real Estate Consumer Loan Agreement” service in an easy-to-understand manner. It is not legally binding. Only your contract documents are legally binding.
This information is divided into 4 sections:
- Part 1 contains specific information. Here, we explain our service, the Real Estate Consumer Loan Agreement.
- Parts 2, 3, and 4 contain general information. Are you dissatisfied with our service? In Part 2, we explain your options for filing a complaint.
Would you like to know how our service meets the requirements of the BFSG? In Part 3, we provide information about the accessibility features of our service.
Are you experiencing accessibility issues with our services? In Part 4, we explain who you can contact in such cases. Here you will find details about the responsible market surveillance authority.
Yours sincerely,
Joh. Berenberg, Gossler & Co. KG
1. Overview of Our Service
In this section, we explain our “Real Estate Consumer Loan Agreement” service. You will learn what the service entails and how it works. We will also discuss the terms that are important for understanding and using our service.
1.1 What is a Real Estate Consumer Loan Agreement?
A real estate consumer loan agreement (hereinafter referred to as the “loan agreement”) is a contract between a borrower and a lender regarding a loan. The borrower is a consumer. The lender is a bank. The lender provides the borrower with a loan—that is, a specific amount of money for personal use. In return, the borrower must pay interest to the lender. And the borrower must repay the loan to the lender. In the loan agreement, the lender and the borrower agree on how the borrower is to repay the loan. The borrower can repay the loan to the lender in installments. Or the borrower can repay the loan to the lender at the end of the contractually agreed term.
A real estate consumer loan agreement is defined as one in which the loan is secured by a mortgage or is used to acquire ownership of real estate. This means that the borrower uses the loan to acquire ownership of a parcel of land, a house, or an apartment. Alternatively, the borrower may use the loan to construct a building. Real estate consumer loan agreements often involve large loan amounts. Therefore, the loan is always secured. This means that the lender requires collateral from the borrower for the loan. Typically, the required collateral is a so-called real property lien, which can be a land charge or a mortgage. If the borrower fails to repay the loan as agreed, the lender may terminate the loan agreement. In that case, the land charge or mortgage gives the lender the right to auction off the property.
1.2 What happens before the loan agreement is signed?
Before we (as a bank) enter into a loan agreement with you (as a consumer), we, as a bank, must fulfill certain obligations. One important obligation is to provide you with specific information about the loan agreement. This information is referred to as pre-contractual information (VVI). The VVI includes the European Standardized Information Sheet (ESIS). Its standardized format helps you, as a consumer, compare offers from different banks.
We are also required to assess your creditworthiness. To do this, we will ask you for certain personal information, such as your income, expenses, and assets. Based on this information, we will conduct a creditworthiness assessment. We may only enter into a loan agreement with you if the creditworthiness check is favorable. We may determine that you are unable to repay the loan with your income or assets. In that case, we may not enter into a loan agreement with you. There may be another borrower in addition to you, such as your spouse. In that case, we will assess whether you can repay the loan jointly.
You have the right to receive a copy of the draft loan agreement. You do not have to pay us any fee for this. However, this applies only if we are certain that we intend to enter into the loan agreement with you.
In most cases, when preparing the offer and conducting a credit check, we run a database query—for example, with Schufa. In doing so, we comply with data protection regulations.
The database query may indicate that we must reject your loan application. In that case, we will inform you immediately and free of charge.
1.3 How Is the Contract Concluded?
The contract is concluded once we have reached an agreement with you regarding the loan. We set forth all the terms of the loan in the loan agreement. These include, for example, provisions regarding the loan amount, collateral (see 1.5), interest (see 1.6), and repayment (1.9). The loan agreement also contains standardized provisions: that is, general terms and conditions (GTC) or loan terms. The loan agreement must be concluded in writing. This means that you must personally sign the loan agreement with your name. We, as the bank, must also sign the loan agreement. There is an exception for us if the loan agreement is generated using an automated system. In that case, our signature is not required. The loan agreement may be signed using an electronic signature. In this case, you can insert a qualified electronic signature, which means signing it electronically with your name.
1.4 How Is the Loan Disbursed?
In the loan agreement, we typically set forth the terms under which we will disburse the loan to you (disbursement conditions). Often, disbursement is contingent upon your having established the agreed-upon collateral (land charge, mortgage) with a notary. When building a house, disbursement is often contingent upon reaching a certain stage of construction. In such cases, we reserve the right to verify the progress of construction. You may also instruct us to disburse the funds to another person or entity. This could be, for example, a developer, seller, or notary.
The disbursement amount does not correspond to the agreed-upon total loan amount (also known as the net loan amount). It also depends on the costs you incur in connection with taking out or granting the loan. These may include costs that we or another company charge you for the loan or in connection with the loan. For example, premiums for residual debt insurance paid to an insurer may be deducted from the total loan amount. The disbursement amount is therefore calculated by deducting all costs from the total loan amount. The total loan amount, or net loan amount, is the maximum amount to which you are entitled under the loan agreement.
You are obligated to accept the loan. You will find all the details regarding this in your contract. If you refuse to accept the loan, either in part or in full, you may be liable to us for damages. This form of compensation is referred to as a non-acceptance penalty. A non-acceptance penalty may apply if you no longer wish to take the loan and therefore do not draw down the funds from us (this applies only to fixed-rate loans; see 1.6.1). The non-acceptance penalty is calculated according to the same principles as the prepayment penalty (see 1.11).
1.5 What are the provisions regarding collateral for the loan?
In the loan agreement, we will agree with you on the collateral we require from you for the loan. For example, we may require you to create a real estate lien in our favor (for our benefit). A land charge allows a piece of real property to be encumbered in favor of a lender: The party creating the land charge must pay the lender a specific amount of money from the proceeds of the property. This means that the property (i.e., real estate) serves as collateral for the loan. In other words, the property (real estate) serves as security.
If we terminate the loan agreement because you are not repaying the loan as agreed, we may liquidate the collateral. For example, we may auction off the encumbered property. To do so, we must first terminate the land lien with six months’ notice. However, we will always contact you before such a foreclosure sale takes place. We will use the proceeds from the foreclosure sale (proceeds from foreclosure) to repay our outstanding claims arising from the loan. If the proceeds from foreclosure are insufficient, you must pay the remaining amount. If the proceeds from the sale exceed your debt, we will usually pay you the excess proceeds (excess proceeds = proceeds from the sale minus the outstanding debt and auction costs). In the loan agreement or a separate collateral agreement, we will specify with you how and when we are permitted to liquidate the collateral.
1.6 What interest rates apply?
You must pay interest on the loan at an agreed-upon rate. This is why it is also referred to as “debit interest” or a “debit interest rate.” The debit interest rate is the cost of us disbursing the loan to you and making it available for a specific period of time.
There are two types of borrowing rates: the fixed borrowing rate (see 1.6.1) and the variable borrowing rate (see 1.6.2). We can agree on either a fixed or a variable borrowing rate with you. In most cases, a fixed borrowing rate is agreed upon.
A commitment fee (also known as commitment interest) may also be contractually agreed upon. In this case, you owe us commitment interest for the period until the loan is fully disbursed.
1.6.1 What Is a Fixed Borrowing Rate?
A fixed borrowing rate refers to a situation where we agree with you on a fixed (unchanging) borrowing rate. The interest rate may be fixed for the entire term of the contract. However, it may also be fixed for a shorter period: the so-called fixed-rate period. With a fixed interest rate, the loan is also referred to as a fixed-rate loan. The interest rate is also referred to as a fixed rate.
The fixed-rate period may be shorter than the term of the contract. In this case, we will renegotiate the interest rate and the loan repayment installments with you. However, you may also terminate the loan and repay it at the end of the fixed-rate period.
1.6.2 What is a variable borrowing rate?
A borrowing rate is considered variable if it can change during the term of the contract. Of course, you should know how the borrowing rate might change. To that end, we agree with you on a reference interest rate that determines how the borrowing rate will change. A reference interest rate is an interest rate that is determined objectively and unambiguously. You and we can access and verify it at any time. It must be publicly available. The reference interest rate reflects the cost of borrowing in various markets. It is variable. This means it can change—that is, it can rise or fall. As a bank, we have no influence over the movement of the reference interest rate.
The loan agreement specifies when and under what circumstances the amount of the variable interest rate will change.
1.7 What is the annual percentage rate (APR)?
The annual percentage rate (APR) represents the total cost of the loan that you will have to pay. It is expressed as an annual percentage. The purpose of the APR is to enable you, as a consumer, to compare different loan offers.
1.8 What are the total costs associated with a loan?
The total cost of a loan primarily consists of the interest charged. In addition, there are all costs incurred by you in connection with the loan agreement that are known to us as the bank. These may include, for example, brokerage fees or commissions, or other costs such as land registry fees.
1.9 How does loan repayment work?
You are obligated to repay the loan. In the loan agreement, we will agree with you on how you must repay the loan. There are various repayment options: the annuity loan (see 1.9.1), the amortizing loan (see 1.9.2), and the bullet loan (see 1.9.3).
1.9.1 What is an annuity loan?
When you take out an annuity loan with us, you pay us an annuity at regular intervals. You can make these annuity payments, for example, once a month, once a quarter, or once a year. The annuity consists of a principal portion and an interest portion. The principal portion is used to pay down the loan. As a result, the outstanding loan balance decreases with each payment. The interest portion covers the accruing interest on the outstanding loan balance. Therefore, at the beginning, the interest portion of the payment is higher than the principal portion. The more payments you make, the more the interest portion decreases, and the principal portion of the payment increases. However, the annuity payment remains the same throughout the fixed-rate period.
1.9.2 What is an amortizing loan?
“Amortization” is the technical term for repayment. When you take out an amortizing loan with us, you repay the loan in equal amortization installments. These installments are due monthly, quarterly, or annually. The monthly amortization installment is calculated as follows: The loan amount is divided by the number of months for which we provide you with the loan. Each installment you pay reduces the outstanding loan balance. In addition to the principal installment, you must pay an interest installment. This decreases over the term of the contract because you repay part of the principal with each installment. As a result, the interest you have to pay each month also decreases. Overall, this means your monthly payment will get smaller and smaller over time.
1.9.3 What Is a Balloon Loan?
If you take out a balloon loan with us, you repay the loan in a single lump sum at the end of the contract term. Until repayment, you must pay us the interest due. The difference from an amortizing loan is that repayment does not occur during the contract term. Therefore, the installment does not include a principal repayment portion. It consists entirely of interest. You can repay a bullet loan using your own funds, such as your assets. However, you can also repay it using a repayment substitute. Examples of repayment substitutes include a home savings contract (with a home savings loan) or a whole life insurance policy. You then save toward these in parallel with the loan agreement. We do not guarantee that you will be able to repay the loan in full using the repayment substitute. Therefore, you must be prepared for the possibility that you may also need to repay the loan using other means. Other means include, for example, savings or a cash payout from a matured insurance policy. In addition, you must be prepared for the possibility that you may need to take out another loan.
1.10 What happens if payments are late?
If you make payments late, statutory late-payment interest may apply. Additional late-payment fees may also apply.
Please note: If you fail to make payments, this can have serious consequences for you. For example, we may initiate a foreclosure sale of the encumbered property. Or it may become difficult for you to obtain a loan in the future.
1.11 Is early repayment possible?
You can repay the loan early at any time, that is, before the agreed-upon repayment date. However, there are restrictions under a real estate consumer loan agreement. You may wish to repay the loan during a fixed-rate period. In that case, you must have a legitimate interest in making the repayment. This applies, for example, in the following situation: You want to sell the property. You then intend to use the sale proceeds to repay the loan early. Early repayment causes us a loss because we forgo your interest payments. You must compensate us for this loss. This means we will assert a claim for damages against you. This is referred to as an early repayment penalty.
You should expect the prepayment penalty to be very high. This is especially true in the following cases: The loan still has a long remaining fixed-rate period. Or the general interest rate level has fallen since the loan agreement was signed. For loans with a variable interest rate, we do not charge an early repayment penalty. In these cases, you can repay the loan early, in full or in part, at any time. You do not need to have a valid reason for the early repayment.
1.12 What are the terms of termination?
When terminating a loan agreement, a distinction is made between ordinary termination (see 1.12.1) and extraordinary termination (also known as termination for good cause; see 1.12.2).
1.12.1 When is ordinary termination possible?
In the case of ordinary termination, a notice period must be observed. The notice period depends on whether a fixed borrowing rate or a variable borrowing rate was agreed upon. In the case of a fixed borrowing rate, the notice period in turn depends on the term of the contract.
The following applies to a fixed interest rate:
You may terminate the loan agreement at the end of the fixed-rate period. The notice period is 1 month.
Fixed-rate period of 10 years: You may terminate the loan agreement 10 years after the loan has been fully disbursed or after the last fixed-rate agreement. The notice period is then 6 months.
For the variable interest rate: You may terminate the loan agreement at any time. You must observe a notice period of 3 months.
1.12.2 When is extraordinary termination (termination for good cause) possible?
In the case of extraordinary termination, no notice period is required. The conditions for this are: You, as a consumer, cannot reasonably be expected to continue under the loan agreement. Or we, as the bank, cannot reasonably be expected to continue under the loan agreement. There must therefore be good cause for the termination. This is why it is also referred to as termination for good cause. A common reason for good cause is when a consumer fails to make the agreed-upon payments. In such cases, the legal requirements for extraordinary termination by the bank are met.
1.13 Is there a right of withdrawal?
If you enter into a loan agreement with us, you have the right to withdraw from it. If you withdraw from the loan agreement, you are no longer bound by it. Here’s how to exercise your right of withdrawal:
You just comply with the withdrawal period. The withdrawal period is 14 days. It usually begins after the loan agreement is signed. You may submit your withdrawal notice verbally or in writing within the withdrawal period. You do not need to provide a reason. And you must address the withdrawal notice to us as the lender. Please note: You may have already received the loan amount when you withdraw from the loan agreement. In that case, you must repay the loan amount to us within 30 days of your withdrawal. Interest will accrue for this period, which is also referred to as daily interest. You can find the amount of this interest in the withdrawal information.
2. Your Options When Filing a Complaint
Are you dissatisfied with our service? In this section, we’ll explain your options when filing a complaint.
2.1 Customer Complaints
You can submit your complaint to us in several ways: in person, by phone, or in writing: to your advisor or directly to the branch that serves you
in writing to: Joh. Berenberg, Gossler & Co. KG, Complaints Management, Neuer Jungfernstieg 20, 20354 Hamburg
For more information on complaints and dispute resolution, please visit https://www.berenberg.de/en/legal-notice/joh-berenberg-gossler-co-kg/
2.2 Out-of-Court Dispute Resolution
Have you filed a complaint with us, but no resolution was reached? In that case, you have the option of out-of-court dispute resolution. As a bank, we participate in the dispute resolution process of the following consumer arbitration board: Ombudsman for Private Banks. There, you can contact the Ombudsman for Private Banks. The Ombudsman will handle your complaint by mediating between you, as a consumer, and us, as a company.
General information about the Ombudsman for Private Banks can be found at www.bankenombudsmann.de. Information on the exact procedure of the Ombudsman process can be found in the Rules of Procedure of the Ombudsman for Private Banks. We will be happy to provide you with the Rules of Procedure upon request. However, you can also view them online on the website of the Federal Association of German Banks (Bundesverband deutscher Banken e. V.) at www.bankenverband.de.
You must submit your complaint in writing to the Ombudsman for Private Banks, for example by mail, fax, or email.
Address:
Ombudsman for Private Banks
Office
P.O. Box 04 03 07
10062 Berlin
Fax: 030 1663-3169
Email: schlichtung%40bdb.de
3. Accessibility Features of Our Service
Would you like to know how our service meets the requirements of the Accessibility Enhancement Act (BFSG)? In this section, we provide information about the accessibility features of our service.
Background: Among other things, the BFSG requires us to comply with the Web Content Accessibility Guidelines. These guidelines are designed to make web content as accessible as possible for everyone, particularly for people with disabilities. The guidelines are based on the following four principles of accessibility:
- Perceivability: As many people as possible should be able to perceive the information and IT functions. For us, this means, for example, that we must ensure that alternative text is provided for images and graphics.
- Operability: As many people as possible should be able to use the IT functions. for us, this means, for example, that we must ensure that our web content can be navigated using a keyboard.
- Clarity: Web content should be readable and clearly understandable to as many people as possible. For us, this means, for example, that we must present our web content in language that is as simple as possible.
- Robustness: Web content must be as compatible as possible with so-called assistive technologies. Assistive technologies include, for example, programs that read web content aloud or enlarge it, as well as those that convert speech to text.
For us, this means, for example, that we must comply with standards for the use of assistive technologies, such as standards regarding the technical structure and labeling of web content.
By implementing these principles, our services meet the requirements of the BFSG.
3.1 Accessibility of Services
These are the accessibility features of our service in connection with a real estate consumer loan agreement:
We offer our service to you as follows: We can send you the pre-contractual information, the draft contract, and other documents by mail. Alternatively, we can make the documents available to you through online banking. You can also ask us to provide the documents to a person who cares for you.You can access our service through various means, specifically via the following sensory channels: in-person pickup at one of our branches, or in a readable (and voice-readable) format via online banking or the app.
3.2 Accessibility of This Information
We provide this information through various access options, specifically via the following sensory channels: in-person pickup at one of our branches, having it read aloud by one of our employees, and the bank’s website.
- The content of this information is written in easy-to-understand language. The language level does not exceed B2 of the Common European Framework of Reference for Languages (CEFR). Please note: This does not apply to the actual service agreement, the General Terms and Conditions (GTC), or the Pre-Contractual Information (PCI) associated with the service agreement.
- The layout of this information has a specific design: Headings are in the “Thunder” font in various sizes. The size of the headings varies; body text is in the “ES Peak” font. Care is taken to ensure sufficient color contrast between the text and the background. In this information, the text is black on a white background.
3.3 Accessibility of Documents Related to Our Services
These are the accessibility features of the documents related to our service (including this information):
- The documents are perceivable. This means you can view them on the screen—with adjustable font size—have them read aloud, and adjust the volume.
- The documents are in the [file format, such as PDF-UA, web-based…]. This format can be converted to other formats, making the documents available to you through multiple sensory channels.
4. Competent Market Surveillance Authority
Are you experiencing accessibility issues with our services? In this section, we’ll tell you who to contact in such cases. Here you’ll find information about the competent market surveillance authority. Do you believe our service does not meet the requirements of the Accessibility Enhancement Act (BFSG)? In this section, we’ll tell you who to contact in that case.
The competent authority is the State Market Surveillance Agency for the Accessibility of Products and Services (MLBF).
The MLBF verifies whether economic operators comply with certain legal requirements. As a banking institution, we are also subject to oversight by the MLBF.
If you encounter problems using our service, you can file a complaint with the MLBF. The MLBF will then, if necessary, take legal action against us (legal basis: Section 6 or Section 7 of the BFSG).
In your complaint, you can allege that we are in violation of a requirement of the BFSG. Alternatively, you can allege that we are in violation of a requirement of the Regulation on the Act to Strengthen Accessibility (BFSGV). (The BFSGV was enacted pursuant to Section 3(2) of the BFSG.)
The MLBF’s contact information is:
Address: Turmschanzenstraße 25, 39114 Magdeburg
Phone: (0391) 567 4530
Email: MLBF@ms.sachsen-anhalt.de