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lease agreement

I have inherited a plot of land (1600m²). About 20 years ago, a garden house (solid construction) was built on this plot of land without the consent of the then owner and without obtaining any permits.
This plot of land was inherited by my parents. In 2003, a agricultural lease agreement was signed with the user of the garden house. This agreement exclusively allows for the use of the land for gardening and keeping small animals. There is a clause in the agreement that obligates the tenant to remove the building at the end of the lease. The agreement is now valid indefinitely.
This plot of land has been designated as building land after application. I now want to use it for building my own home.
Do I have an extraordinary right of termination due to the changed designation of the plot of land? What notice periods must be observed? Does the tenant have any customary rights? Can the amount of rent be adjusted to the increase in the value of the land?

Andreas Scholz

Dear inquirer,

the ordinary and extraordinary termination of lease agreements is governed by §§ 581, 542 (ordinary termination) and 543 (extraordinary termination) of the German Civil Code (BGB).

In the case of a lease agreement concluded for an indefinite period of time regarding land or rights, termination is only permissible for the end of a lease year and must be carried out by the third working day of the halfway point of the year in which the lease is to end, according to § 584 (1) BGB. The calculation of the deadline is based on the regulations of §§ 181 and 189 BGB.

This deadline also applies to extraordinary terminations for important reasons, according to § 584 (2) BGB. Therefore, no deadline shortening would occur if you were able to terminate the lease for the reasons you mentioned. Therefore, you are bound by the statutory deadline provided in § 584 BGB, and you cannot bypass it.

In lease contract law, a distinction must be made between the lease year and the calendar year, which do not have to be identical. Unless otherwise specified, the lease year does not correspond to the calendar year; the year specified in the lease agreement, which begins with the conclusion of the lease agreement, applies.

Termination generally requires the form agreed upon in the lease contract. If no form is agreed upon, termination can be informally verbal. For evidentiary reasons, I recommend the written form.

There is no customary right for the tenant to resist termination (and the associated removal of the building). When termination becomes effective, the leased property must be returned to the lessor in the contractually agreed condition.

Adjusting the rent based on the increase in value of a property would only be possible if this was agreed upon in the lease contract. If this was not the case, adjustment cannot take place within the existing contractual relationship.

I hope this information has been helpful to you. If you have any questions, please do not hesitate to ask.

Sincerely,

Andreas Scholz, Attorney

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Andreas Scholz