COMMERCIAL TENANCY LAW
CHECK OF EXISTING LEASES
The legal review of existing lease agreements can be necessary or recommendable in various situations.
On the one hand, the review and interpretation of lease agreements becomes necessary when a dispute arises between the lessor and the lessee about mutual rights and duties during the term of the lease.
From a commercial point of view, the review of existing lease agreements is particularly important when leased real estate is to be acquired. The validity of the lease over the entire fixed term and the resulting monthly rental income are often the most important factor for the asset’s value. The review of existing lease agreements before the acquisition of real estate, in particular regarding possible breaches of the written form requirement, confirms that the lessee cannot prematurely terminate the contract. It is therefore important to assess this to ensure the flow of rental income to the purchaser over the entire fixed term of the contract.
On the other hand, the detailed review of existing lease agreements can enable a party to dissolve a long-term contract before the expiration of a contractually agreed fixed-term.
Our range of services includes, in particular, the following areas:
|•||Review of existing lease agreements in connection with the planned purchase of real estate|
|•||Determination of termination possibilities resulting from breaches of the written form requirement|
|•||Review of existing leases agreements in regard to legally effective implementation of economically important aspects, e.g. the enforceable passing on of maintenance and repair duties to lessees, valid agreements on rental collateral, etc.|