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Long Term Lease Agreement for Germany

Long Term Lease Agreement Template for Germany

A comprehensive legal document governed by German law, specifically the German Civil Code (Bürgerliches Gesetzbuch - BGB), that establishes a long-term leasing arrangement between a landlord and tenant. The agreement details all aspects of the property lease, including rent, duration, maintenance obligations, and operating costs, while ensuring compliance with German tenant protection laws and specific requirements for long-term contractual relationships. It incorporates mandatory provisions under German law regarding written form requirements (Schriftform), notice periods, and maintenance obligations, while also addressing specific terms for property use, modifications, and return conditions.

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What is a Long Term Lease Agreement?

The Long Term Lease Agreement serves as a fundamental document for establishing extended property leasing arrangements under German law. It is primarily used when parties intend to enter into lease relationships exceeding standard rental periods, typically for commercial or significant residential purposes. The agreement must comply with strict German Civil Code (BGB) requirements, particularly regarding written form (Schriftform) and tenant protection provisions. It includes comprehensive details about property use, maintenance obligations, rent adjustments, and operating costs allocation, while also addressing specific German legal requirements such as energy efficiency standards and registration obligations. This document is crucial for securing long-term property rights and obligations, requiring careful consideration of both current terms and future implications under German jurisdiction.

What sections should be included in a Long Term Lease Agreement?

1. Parties: Identification and details of the landlord and tenant, including full legal names, addresses, and registration details for legal entities

2. Background: Context of the lease arrangement and brief description of the property

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the leased property, including address, size, and designated use

5. Lease Term: Duration of the lease, commencement date, and any extension options

6. Rent and Payment Terms: Base rent amount, payment schedule, and method of payment

7. Operating Costs (Betriebskosten): Allocation and payment of operating costs and utilities

8. Security Deposit: Amount, form, and conditions of the security deposit

9. Use of Property: Permitted use of the property and any restrictions

10. Maintenance and Repairs: Responsibilities for maintenance, repairs, and renovations

11. Insurance and Liability: Required insurance coverage and allocation of liability

12. Termination Rights: Grounds for termination and notice requirements

13. Return of Property: Conditions for returning the property at lease end

14. Final Provisions: Governing law, jurisdiction, written form clause, and severability

What sections are optional to include in a Long Term Lease Agreement?

1. Subletting Rights: Terms for subletting or assignment, used when subletting might be permitted

2. Alterations and Improvements: Rules for making changes to the property, included when significant modifications might be anticipated

3. Environmental Provisions: Special environmental obligations, included for properties with specific environmental concerns

4. Building Rules: Reference to building rules, included for properties in multi-tenant buildings

5. Signage Rights: Rules regarding external signage, included for commercial properties

6. Break Options: Early termination rights, included when parties want flexibility

7. Rent Review: Mechanism for periodic rent adjustments, included for very long-term leases

8. Competition Protection: Non-compete provisions, included for commercial properties in retail locations

What schedules should be included in a Long Term Lease Agreement?

1. Floor Plans: Detailed plans showing the leased area and measurements

2. Inventory List: List of fixtures, fittings, and furniture included in the lease

3. Operating Costs Breakdown: Detailed list of operating costs and allocation method

4. Maintenance Schedule: Schedule of maintenance responsibilities and intervals

5. House Rules: Building regulations and conduct rules

6. Handover Protocol: Template for recording property condition at handover

7. Energy Performance Certificate: Mandatory energy efficiency documentation

8. Building Systems Documentation: Technical information about building systems and equipment

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Rental Agreement

Cost

Free to use

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