Commercial Property Contract Template for Germany

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Key Requirements PROMPT example:

Commercial Property Contract

"I need a Commercial Property Contract under German law for the purchase of a multi-tenant office building in Berlin, with completion planned for March 2025, including specific provisions for existing tenant agreements and service contracts."

Document background
The Commercial Property Contract is a fundamental document used in German real estate transactions involving commercial properties such as office buildings, retail spaces, industrial facilities, or warehouses. This contract type is essential when businesses or investors seek to purchase commercial real estate in Germany, whether for operational use, investment, or development purposes. The document must comply with German property law requirements, including mandatory notarization and registration in the land registry (Grundbuch). It contains detailed provisions covering property description, purchase price, payment terms, warranties, and transfer conditions. The contract's structure reflects German legal requirements while addressing commercial considerations such as existing tenancies, development potential, and environmental compliance. This document is particularly important given Germany's strict property transfer regulations and the significant value typically involved in commercial property transactions.
Suggested Sections

1. Parties: Identification and details of the seller and purchaser, including full legal names, registration numbers for companies, and addresses

2. Background: Context of the transaction 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 property including land registry details (Grundbuch), exact location, size, and boundaries

5. Purchase Price: Specification of the purchase price, payment terms, and payment schedule

6. Transfer of Ownership: Conditions and process for transferring property ownership, including Grundbuch registration requirements

7. Representations and Warranties: Seller's declarations regarding property condition, encumbrances, and other material facts

8. Due Diligence: Buyer's inspection rights and due diligence process

9. Notarization and Completion: Requirements for notarization and steps to complete the transaction

10. Costs and Taxes: Allocation of transaction costs, including notary fees, transfer taxes, and registration fees

11. Handover: Process and conditions for physical handover of the property

12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

13. Execution: Signature blocks and notarization requirements

Optional Sections

1. Existing Tenancies: Details of current tenants and lease agreements, used when the property is sold with existing tenants

2. Environmental Provisions: Specific clauses regarding environmental conditions or contamination, used when environmental issues are present

3. Development Rights: Details of any development potential or restrictions, used when the property has development potential

4. Financing Conditions: Specific provisions related to buyer's financing, used when purchase is dependent on financing

5. Pre-emption Rights: Details of any pre-emption rights (Vorkaufsrecht), used when such rights exist

6. Asset List: List of included fixtures and fittings, used when specific items are included in the sale

7. VAT Election: VAT treatment of the transaction, used when applicable for commercial properties

8. Planning Permissions: Details of existing planning permissions, used when relevant to the transaction

Suggested Schedules

1. Property Plans: Official cadastral plans and property boundaries

2. Land Register Extract: Current Grundbuch extract showing ownership and encumbrances

3. Building Plans: Architectural plans and building specifications

4. Technical Due Diligence Report: Technical survey and condition assessment

5. Environmental Reports: Environmental surveys and assessments

6. Existing Lease Agreements: Copies of current lease agreements

7. Energy Performance Certificate: Energieausweis as required by German law

8. Property Tax Assessment: Current property tax assessment and payment status

9. Building Permits: Copies of relevant building permits and certificates

10. Service Contracts: List and copies of ongoing service contracts

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Commercial Property

Legal Services

Banking and Finance

Property Development

Construction

Retail

Manufacturing

Logistics and Warehousing

Office Space Management

Hospitality

Industrial

Relevant Teams

Legal

Real Estate

Finance

Operations

Facilities Management

Risk and Compliance

Business Development

Investment

Property Management

Asset Management

Corporate Development

Commercial Operations

Relevant Roles

Real Estate Director

Property Manager

Legal Counsel

Corporate Lawyer

Chief Financial Officer

Investment Manager

Facilities Manager

Business Development Director

Commercial Director

Asset Manager

Property Developer

Real Estate Investment Manager

Compliance Officer

Risk Manager

Operations Director

Project 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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