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Real Property License Agreement for Germany

Real Property License Agreement Template for Germany

A comprehensive legal document governed by German law that establishes the terms and conditions under which a property owner (licensor) grants specific usage rights to another party (licensee) for a defined period. This agreement is structured according to German Civil Code (BGB) requirements and includes detailed provisions for property use, maintenance responsibilities, fee arrangements, and compliance with local regulations. It differs from a lease agreement by typically offering more limited rights and greater flexibility in termination, while ensuring compliance with German property law and registration requirements.

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What is a Real Property License Agreement?

The Real Property License Agreement serves as a crucial legal instrument in German property law for situations where full leasehold rights are not necessary or desired. This document is typically used when a party needs specific, limited rights to use a property for a defined purpose, such as installing equipment, operating a specific business activity, or utilizing a portion of a larger property. The agreement must comply with the German Civil Code (BGB) and related property regulations, making it distinct from standard lease agreements. It includes essential elements such as property description, usage terms, fee structures, and compliance requirements, while offering greater flexibility in duration and termination compared to traditional leases. This type of agreement is particularly valuable for commercial and industrial applications where temporary or specific-use rights are required while maintaining the property owner's primary control over the asset.

What sections should be included in a Real Property License Agreement?

1. Parties: Identification of the Licensor and Licensee with full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the property, and purpose of the license

3. Definitions: Definitions of key terms used throughout the agreement, including Property, License Period, Permitted Use, etc.

4. Grant of License: Specific terms of the license grant, including scope, duration, and permitted uses of the property

5. Property Description: Detailed description of the licensed property, including its exact location, boundaries, and included facilities

6. License Fee: Amount, payment schedule, method of payment, and any review mechanisms for the license fee

7. Duration and Termination: Term of the license, renewal provisions, and circumstances for termination

8. Licensee's Obligations: Responsibilities of the licensee including maintenance, permitted alterations, and compliance with regulations

9. Licensor's Obligations: Responsibilities of the licensor including access, maintenance of structural elements, and insurance

10. Insurance and Liability: Insurance requirements and allocation of risks between parties

11. Compliance with Laws: Obligations to comply with relevant German laws, regulations, and local requirements

12. Notices: Process and addresses for formal communications between parties

13. Governing Law: Confirmation of German law as governing law and jurisdiction specifications

What sections are optional to include in a Real Property License Agreement?

1. Utilities and Services: Details of utility arrangements and service responsibilities when the property includes shared services or utilities

2. Alterations and Improvements: Terms regarding modifications to the property, needed when the licensee requires right to make changes

3. Security Deposit: Terms of any security deposit required, including amount, holding, and return conditions

4. Sublicensing and Assignment: Terms regarding transfer of rights, relevant when sublicensing might be permitted

5. Environmental Matters: Environmental obligations and liabilities, particularly relevant for industrial or commercial properties

6. Force Majeure: Provisions for extraordinary events affecting the use of the property

7. Data Protection: GDPR compliance terms when personal data processing is involved

8. Dispute Resolution: Alternative dispute resolution procedures if parties wish to specify mediation before court proceedings

What schedules should be included in a Real Property License Agreement?

1. Property Plan: Detailed plans or drawings of the licensed property including boundaries and access routes

2. License Fee Schedule: Detailed breakdown of license fees, payment dates, and calculation methods

3. Permitted Use Specifications: Detailed description of allowed activities and use limitations

4. Condition Report: Documentation of property condition at commencement of license

5. Building Rules: Specific rules and regulations for property use, particularly relevant for multi-occupied buildings

6. Insurance Requirements: Detailed specifications of required insurance coverage

7. Maintenance Schedule: Breakdown of maintenance responsibilities between licensor and licensee

8. Required Permits: List of necessary permits and licenses for property use

Authors

Alex Denne

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

Jurisdiction

Germany

Publisher

Ƶ

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions





































Clauses
































Relevant Industries

Real Estate

Commercial Property

Industrial Manufacturing

Retail

Logistics and Warehousing

Agriculture

Energy and Utilities

Technology and Telecommunications

Healthcare

Education

Hospitality and Tourism

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Property Management

Asset Management

Compliance

Finance

Corporate Services

Risk Management

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Facilities Manager

Commercial Director

Operations Manager

Asset Manager

Contract Administrator

Real Estate Investment Manager

Property Development Manager

Compliance Officer

Corporate Real Estate Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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