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Real Estate Operating Agreement Template for Germany

A Real Estate Operating Agreement under German law (Immobilien-Betreibervertrag) is a comprehensive legal document that establishes the terms and conditions for the operation and management of real estate properties in Germany. The agreement complies with German Civil Code (BGB) requirements and relevant property management regulations, detailing the responsibilities of the operating company, financial arrangements, maintenance obligations, and compliance requirements. It incorporates specific German legal provisions regarding property management, tenant relations, and building operations while ensuring alignment with local building codes and environmental regulations.

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What is a Real Estate Operating Agreement?

The Real Estate Operating Agreement is essential for property owners in Germany who delegate the operation and management of their real estate assets to professional operating companies. This document is particularly crucial in the German market where property management is highly regulated and requires strict compliance with various laws including the BGB, WEG, and BetrKV. The agreement typically comes into play when property owners seek professional management of their assets, whether commercial, residential, or mixed-use properties. It outlines comprehensive operational procedures, financial arrangements, maintenance responsibilities, and compliance requirements specific to German property law. The document serves as a foundational framework for ensuring proper property management while protecting the interests of all parties involved and maintaining compliance with German regulatory requirements.

What sections should be included in a Real Estate Operating Agreement?

1. Parties: Identification of the property owner and the operating company, including full legal names, registration details, and authorized representatives

2. Background: Context of the agreement, property details, and purpose of the operating arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical and legal terminology

4. Scope of Services: Comprehensive outline of the operating company's responsibilities and services to be provided

5. Term and Termination: Duration of the agreement, renewal provisions, and termination conditions

6. Operating Standards: Required quality standards, compliance with regulations, and performance metrics

7. Financial Terms: Fee structure, payment terms, operating costs allocation, and financial reporting requirements

8. Maintenance and Repairs: Responsibilities for property maintenance, repair procedures, and cost allocation

9. Insurance and Liability: Required insurance coverage, liability allocation, and indemnification provisions

10. Compliance and Permits: Obligations regarding regulatory compliance, permits, and licenses

11. Reporting and Documentation: Required reports, documentation standards, and record-keeping obligations

12. Governing Law and Dispute Resolution: Applicable German law provisions and dispute resolution procedures

What sections are optional to include in a Real Estate Operating Agreement?

1. Environmental Compliance: Specific environmental obligations and sustainability requirements, necessary for properties with special environmental considerations

2. Security Services: Requirements for security personnel and systems, relevant for commercial or high-security properties

3. Tenant Relations: Procedures for managing tenant relationships, necessary for multi-tenant properties

4. Marketing and Promotion: Requirements for property marketing and promotion, relevant for retail or commercial properties

5. Emergency Procedures: Specific emergency response protocols, particularly important for public access properties

6. Staff Requirements: Specific staffing obligations and qualifications, necessary for properties requiring on-site personnel

7. Utilities Management: Specific provisions for utilities management and billing, relevant for properties with complex utility systems

8. Improvement and Renovation: Procedures for property improvements and renovations, relevant for properties requiring significant upgrades

What schedules should be included in a Real Estate Operating Agreement?

1. Property Description: Detailed description of the property including legal boundaries, facilities, and technical specifications

2. Service Level Agreement: Detailed performance metrics, response times, and quality standards

3. Fee Schedule: Detailed breakdown of all fees, charges, and payment calculations

4. Operating Procedures Manual: Detailed operational procedures and standards for day-to-day management

5. Maintenance Schedule: Planned maintenance schedules and procedures for different building systems

6. Required Insurance Coverage: Detailed specifications of required insurance policies and coverage levels

7. Staff Organization Chart: Required staffing structure and reporting relationships

8. Emergency Contact List: List of emergency contacts and escalation procedures

9. Regulatory Compliance Checklist: Checklist of all applicable regulations and compliance requirements

10. Asset Inventory: Detailed inventory of all equipment and assets included in the operation

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

Jurisdiction

Germany

Publisher

Genie AI

Cost

Free to use

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