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The Mortgage Modification Agreement is utilized when parties to an existing German mortgage wish to alter its terms due to various circumstances such as financial hardship, interest rate changes, or other material modifications to the original agreement. This document is crucial in the German banking and real estate sector, where strict regulatory requirements govern mortgage alterations. It must comply with the German Civil Code (BGB), particularly sections dealing with real estate liens and mortgages (§§ 1113-1190 BGB), the German Banking Act (KWG), and Land Register regulations. The agreement includes essential information about the original mortgage, specific modifications, and necessary approvals for Land Register updates. Proper execution often requires notarization and must consider consumer protection laws when the borrower is a private individual.

1. Parties: Identification of the lender (typically a banking institution) and the borrower(s), including their full legal names, addresses, and registration details for legal entities

2. Background: Details of the existing mortgage agreement, including its date, registration details in the Land Register, and the reason for modification

3. Definitions: Definitions of key terms used in the agreement, including references to the original mortgage agreement terms that remain applicable

4. Original Mortgage Details: Specific details of the original mortgage including property description, original principal amount, and current outstanding amount

5. Modification Terms: Clear statement of all modifications to the original mortgage agreement, such as interest rate changes, payment terms, or loan duration

6. Effective Date: Specification of when the modifications take effect and any conditions precedent

7. Continuing Validity: Confirmation that all unmodified terms of the original mortgage agreement remain in full force and effect

8. Registration Authorization: Authorization for registration of the modifications in the Land Register (Grundbuch) where required

9. Costs and Fees: Allocation of costs related to the modification, including registration fees and notary costs

10. Governing Law: Confirmation of German law as the governing law and jurisdiction

11. Execution: Signature blocks for all parties and notarial certification requirements