(1) The creditor of a mortgage may demand of the owner that the latter arrange for the deletion of a mortgage having higher or equal priority if, at the time of registration of the mortgage of the creditor, it is merged with the ownership in one person or such merger occurs subsequently. If, after registration of the mortgage given precedence under sentence 1, the ownership devolved to another by way of singular succession, each owner is obliged to delete with regard to the mergers existing at the time of that owner’s ownership. The claim to deletion is secured in the same way as if a priority notice had been entered in the Land Register for its security at the same time as the mortgage given precedence.
(2) The deletion of a mortgage which is merged with the ownership in one person under section 1163 (1) sentence 1 may not be demanded under subsection (1) unless it appears that the claim to be secured will no longer come into existence; however, the claim for deletion is available from this point in time on with regard to the mergers existing beforehand. A claim under subsection (1) is not constituted by the merger of a mortgage with ownership in accordance with section 1163 (2).
(3) If, in the case of a favoured mortgage, the prerequisites set out in section 1163 are met but the right has not been entered in the Land Register for the owner or their successor in title, the claim for deletion belongs to the registered creditor or their successor in title.
(4) If the priority of a mortgage is reduced, subsections (1) to (3) are to be applied accordingly to the deletion of the mortgage that is prior or equal in rank to it as a result of the change of priority, subject to the proviso that the time of the registration of the change of priority takes the place of the time of registration of the right with lower priority.
(5) If the creditor of a mortgage has a claim to deletion under the above provisions, it may be agreed that the exclusion of this claim is part of the contents of the mortgage; the exclusion may be restricted to a specific case of merger. The exclusion is to be stated in the Land Register with a designation of the mortgages which are wholly or partially exempted from the claim for deletion; if the exclusion has not been agreed for every case of merger, then, in order to define specifically the cases involved, reference may be made to the approval of registration. If the exclusion is cancelled, no claims to deletion arise from this for mergers which existed only prior to the cancellation.