The Business Property Lease Agreement is a crucial document used when establishing a commercial tenancy relationship under German law. It is specifically designed for situations where commercial property is being leased for business purposes, whether for retail, office, industrial, or other commercial uses. The agreement must comply with German legal requirements, particularly the German Civil Code (BGB) and commercial law provisions, while addressing practical business needs. It includes essential elements such as property details, permitted use, rent calculations, operating costs, maintenance responsibilities, and termination provisions. This document is particularly important in the German market where commercial lease relationships are less regulated than residential leases, requiring careful attention to detail in drafting comprehensive terms.
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1. Parties: Identification and details of the landlord and tenant, including full legal names, registration numbers for companies, and addresses
2. Background: Context of the lease agreement and brief description of the property and intended use
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the leased premises, including exact location, size, and included facilities
5. Permitted Use: Specified commercial purpose and allowed usage of the property
6. Lease Term: Duration of the lease, commencement date, and any renewal options
7. Rent and Payment Terms: Base rent amount, payment schedule, and method of payment
8. Operating Costs and Additional Charges: Specification of operating costs (Betriebskosten) and their allocation between parties
9. Security Deposit: Amount, form, and conditions of the security deposit
10. Maintenance and Repairs: Responsibilities of each party regarding maintenance, repairs, and renovations
11. Insurance and Liability: Required insurance coverage and allocation of liability
12. Alterations and Improvements: Provisions regarding modifications to the property
13. Access and Inspection Rights: Landlord's rights to access the property
14. Termination: Grounds for termination and notice requirements
15. Return of Property: Conditions for returning the property at lease end
16. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction
17. Severability Clause: Standard salvatory clause (Salvatorische Klausel) required under German law
1. Subletting and Assignment: Include when subletting or assignment rights are to be specifically addressed
2. Operating Hours: Include for properties in retail locations or where operating hours need to be restricted
3. Signage Rights: Include when exterior or interior signage needs to be regulated
4. Parking: Include when parking spaces are part of the lease
5. Competing Business Restrictions: Include when there are restrictions on competing businesses in the vicinity
6. Environmental Provisions: Include for properties with specific environmental concerns or requirements
7. Force Majeure: Include specific force majeure provisions beyond standard German law
8. Special Use Requirements: Include for properties requiring specific licenses or permits
9. Rent Adjustment Mechanism: Include when specific rent adjustment formulas are needed beyond standard indexation
10. Utilities and Services: Include when specific arrangements for utilities need to be detailed
1. Floor Plans: Detailed plans showing the leased area and measurements
2. Inventory List: List of any furnishings or equipment included in the lease
3. Operating Costs Breakdown: Detailed breakdown of operating costs and allocation method
4. Maintenance Schedule: Schedule of regular maintenance responsibilities
5. Building Rules: General rules and regulations for the building or complex
6. Handover Protocol: Template for property handover documentation
7. Energy Performance Certificate: Required energy efficiency documentation
8. Technical Specifications: Technical details of building systems and equipment
9. Renovation Schedule: Planned renovation or improvement works
10. Insurance Requirements: Detailed insurance specifications and requirements
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