Lease Agreement (Germany)

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Horemans, 1767: Farmers deliver rent in kind to the landlord , German Historical Museum Berlin

The lease is the transfer of use of an object on time with the possibility of fruits grow, for which the owner a fee due. The lease is to be separated from the rent . This differs in that the tenant, unlike the lessee, does not have the option of fruiting .

Demarcation

In contrast to the rental contract, the lease contract can be concluded as a mutual contract not only about property , but also about rights. Furthermore, not only the use of the property or rights is permitted, the lease agreement also enables the fruit to be drawn from the property. In the lease agreement, not only a fixed monthly amount can be agreed as consideration (as in the rental agreement), but also payments depending on sales or earnings.

  • The related business of franchising or franchise agreement is similar to the lease agreement .
  • The right of use and payment for a software ( ASP solution ) can also be regulated in a lease.

Legal regulation

In Germany, the lease agreement is regulated in the provisions of §§ 581–597 BGB (lease: §§ 581 ff. BGB, land lease: §§ 585 ff. BGB).

In addition to the civil law provisions of the Civil Code, there may also be mixed public / private law , such as the Federal Allotment Garden Act for the lease of allotment gardens, the Federal Hunting Act for the lease of a hunt or the fishing laws of the federal states for the fishing lease .

Obligations of the lessor and lessee

The lease is a continuing obligation that is terminated when the agreed period expires or upon termination.

The lessor must give the tenant the property or the right to use it (in land lease law, drawing of the crops). The lessee must pay the agreed rent (“the rent”). With regard to the use of the thing, the regulations on rent are largely applicable.

The lessee is entitled to use the inventory and is obliged to return the inventory after the end of the contract.

In earlier times, the lease was often in the form of an agreed share of the Natural earnings rendered: sharecropping and sharecroppers (submission of half of the income).

Lien

The leaseholder has a lien on the lease according to § 583 BGB against the claims against his lessor . The lessor himself receives a lien from § 592 BGB for his claims against the lessee.

termination

The termination is structured with the rent. It must be explained to the lessor or the lessee. If the lessee dies, the heirs and the lessor have a special right of termination. Cancellation must be made within one month with a notice period of six months to the end of a quarter. Otherwise, the rental regulations largely apply.

Examples

Leases often relate to land with and without buildings. Land lease refers to the leasing for agricultural use, corporate leasing the leasing of companies . The rare in Europe, more frequent in Latin America, Asia and Africa share farming (including cropping ) is a form, to farmers and landowners share the produce of the land in which, this happens to varying proportions.

Lease of land in the GDR

In the GDR it was possible to lease land and build structures on it. With the Law of Obligations Adjustment Act , the buildings can become the property of the property owner in 2022.

Tax liability