The Pre Lease Agreement is a crucial document used in German real estate transactions when parties have agreed in principle to a lease arrangement but need to formalize certain preliminary commitments before executing the final lease. This document is particularly valuable in scenarios involving commercial properties, new developments, or situations requiring significant due diligence or property modifications. It sets out the parties' intentions, essential terms, timelines, and conditions that must be met before the final lease is concluded. Under German law, while not as comprehensive as the final lease, the Pre Lease Agreement creates binding obligations on both parties and must comply with specific requirements of the German Civil Code (BGB), particularly regarding form requirements and pre-contractual obligations.
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1. Parties: Identification of the potential landlord and potential tenant, including full legal names, addresses, and registration details if applicable
2. Background: Context of the pre-lease agreement, including property identification and parties' intention to enter into a future lease agreement
3. Definitions: Definition of key terms used throughout the agreement
4. Object of the Pre-Lease: Detailed description of the property to be leased and its intended use
5. Duration and Timeline: Period during which the pre-lease agreement is valid and timeline for concluding the final lease agreement
6. Binding Effect: Extent to which the parties are bound by the pre-lease agreement and conditions for entering into the final lease
7. Essential Lease Terms: Outline of the main terms to be included in the final lease (rent, deposit, duration, etc.)
8. Conditions Precedent: Conditions that must be fulfilled before the final lease agreement can be concluded
9. Exclusivity: Commitment from landlord not to negotiate with other potential tenants during the pre-lease period
10. Costs and Expenses: Allocation of costs related to the pre-lease agreement and preparation of the final lease
11. Termination: Circumstances under which the pre-lease agreement can be terminated
12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes
1. Renovation Works: Details of any renovation or modification works to be completed before the final lease, used when property requires modification
2. Due Diligence: Process and timeline for tenant's property inspection and verification, included when detailed property examination is required
3. Broker Provisions: Terms regarding real estate broker involvement and commission, included when a broker is involved
4. Deposit Terms: Special provisions regarding any deposit or guarantee required during the pre-lease period
5. Special Use Requirements: Specific terms related to special use permits or licenses, included for commercial or specialized use
6. Assignment Rights: Rights to assign the pre-lease agreement to affiliated companies, included for corporate tenants
7. Confidentiality: Confidentiality obligations regarding the negotiations and terms, included for sensitive commercial arrangements
1. Property Details: Detailed description of the property, including floor plans, measurements, and specifications
2. Proposed Lease Terms: Draft of essential terms for the final lease agreement
3. Property Photographs: Current photographs documenting the condition of the property
4. Building Permits: Copies of relevant building permits and certificates
5. Timeline Schedule: Detailed timeline for negotiations, due diligence, and lease execution
6. Renovation Plans: If applicable, plans and specifications for any renovation works
7. Property Usage Requirements: Specific requirements or restrictions regarding property usage
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