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Dokument	BGB Book 2 Law of Obligations
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19603

=U3= UTit1 -- Subtitle 1 General provisions for leases

=U4= Sec535 -- Section 535 Contents and primary duties of the lease agreement

-- =S=> BGB 535. 1 A lease agreement imposes on the lessor a duty to grant the lessee use of the leased property for the lease period . The lessor must surrender the leased property to the lessee in a condition suitable for use in conformity with the contract and maintain it in this condition for the lease period . He must bear all costs to which the leased property is subject .
=S=> BGB 535. 2 The lessee is obliged to pay the lessor the agreed rent .

=U4= Sec536 -- Section 536 Rent reduction for material and legal defects

-- =S=> BGB 536. 1 If the leased property at the time of surrender to the lessee has a defect which removes its suitability for the contractually agreed use , or if such a defect arises during the lease period , then the lessee is exempted for the period when suitability is removed from paying the rent . For the period of time when suitability is reduced , he need only pay reasonably reduced rent . A trivial reduction of suitability is not taken into account .
=S=> BGB 536. 2 Subsection ( 1 ) sentences 1 and 2 also apply if a warranted characteristic is lacking or later ceases .
=S=> BGB 536. 3 If the lessee is fully or partially deprived by a third-party right of use of the leased property , then subsections ( 1 ) and ( 2 ) apply with the necessary modifications .
=S=> BGB 536. 4 With regard to a lease for residential space , a deviating agreement to the disadvantage of the lessee is ineffective .

=U4= Sec536a -- Section 536a Claim of lessee for damages and reimbursement of expenses due to a defect

-- =S=> BGB 536a. 1 If a defect within the meaning of section 536 exists when the lease agreement is entered into , or if such a defect arises subsequently due to a circumstance that the lessor is responsible for , or if the lessor is in default in remedying a defect , then the lessee may , notwithstanding the rights under section 536 , demand damages .
=S=> BGB 536a. 2 The lessee may remedy the defect himself and demand reimbursement of the necessary expenses if the lessor is in default in remedying the defect , or immediate remedy of the defect is necessary to preserve or restore the state of the leased property .

=U4= Sec536b -- Section 536b Lessee knows of the defect upon entering into the agreement or upon acceptance

-- =S=> BGB 536b If the lessee knows of the defect when entering into the agreement , then he does not have the rights under sections 536 and 536a. If he remains unaware of the defect due to gross negligence , then he has these rights only if the lessor fraudulently concealed the defect . If the lessee accepts a defective thing although he is aware of the defect , then he may only assert the rights under sections 536 and 536a if he reserved his rights at the time of acceptance .

=U4= Sec536c -- Section 536c Defects occurring during the lease period ; notice of defect by the lessee

-- =S=> BGB 536c. 1 If a defect in the leased property comes to light during the lease period or if action to protect the leased property from an unforeseen hazard becomes necessary , then the lessee must without undue delay report this to the lessor . The same applies if a third party arrogates to himself a right to the thing .
=S=> BGB 536c. 2 If the lessee fails to report this , then he is liable to the lessor for damage incurred thereby . To the extent that the lessor was prevented from providing relief due to the failure of the lessee to report it , the lessee is not entitled to assert the rights specified in section 536 , to demand damages under section 536a ( 1 ) , or to give notice without specifying a reasonable period for relief under section 543 ( 3 ) sentence 1.

=U4= Sec536d -- Section 536d Contractual exclusion of rights of lessee with regard to defects

-- =S=> BGB 536d The lessor may not invoke an agreement by which the rights of the lessee are excluded or restricted with regard to a defect in the leased property if he fraudulently concealed the defect .

=U4= Sec537 -- Section 537 Payment of rent when the lessee is unable to be present in person

-- =S=> BGB 537. 1 The lessee is not released from his obligation to pay rent due to the fact that , for a reason relating to his person , he is unable to exercise his right of use . However , the lessor must allow to be credited against him the value of the expenses saved and of the advantages he enjoys from exploiting the use in another way .
=S=> BGB 537. 2 As long as the lessor is unable to grant the lessee use because use has been permitted to a third party , the lessee is not obliged to pay the rent .

=U4= Sec538 -- Section 538 Wear and tear on the leased property from use in conformity with the contract

-- =S=> BGB 538 The lessee is not responsible for modifications to or deterioration of the leased property brought about by use in conformity with the contract .

=U4= Sec539 -- Section 539 Reimbursement of other expenses and right of removal of the lessee

-- =S=> BGB 539. 1 The lessee may , under the provisions on agency without specific authorisation , demand reimbursement from the lessor for outlays on the leased property that the lessor need not compensate him for under section 536a ( 2 ) . BGB 539. 2 The lessee is entitled to remove an installation that he has provided the leased property with .

=U4= Sec540 -- Section 540 Permitting use by third parties

-- =S=> BGB 540. 1 Without the permission of the lessor , the lessee is not entitled to permit a third party to use the leased property , in particular not to sublet it . If the lessor refuses permission , then the lessee may terminate the lease for cause with the statutory notice period unless the person of the third party constitutes cause .
=S=> BGB 540. 2 If the lessee permits a third party to use the property , then he is responsible for the culpability in the use of the property attributable to that third party even if the lessor has given permission for this .

=U4= Sec541 -- Section 541 Application for injunction for use in breach of contract

-- =S=> BGB 541 If the lessee persists with use of the leased property in breach of contract despite a warning by the lessor , then the latter may seek a prohibitory injunction .

=U4= Sec542 -- Section 542 End of the lease

-- =S=> BGB 542. 1 If the lease period is indefinite , then each of the parties to the contract may give notice of termination in accordance with the statutory provisions .
=S=> BGB 542. 2 A lease entered into for a definite period of time ends at the end of that period unless it has been terminated for cause in legally permissible cases , or is extended .

=U4= Sec543 -- Section 543 Termination for cause without notice for a compelling reason

-- =S=> BGB 543. 1 Each party to the contract may terminate the lease for cause without notice for a compelling reason . A compelling reason is deemed to obtain if the party giving notice , with all circumstances of the individual case taken into account , including without limitation fault of the parties to the contract , and after weighing the interests of the parties , cannot be reasonably expected to continue the lease until the end of the notice period or until the lease ends in another way .
=S=> BGB 543. 2 A compelling reason is deemed to obtain in cases including without limitation where the lessee is not permitted the use of the leased property in conformity with contract , in whole or in part , in good time , or is deprived of this use , the lessee violates the rights of the lessor to a substantial degree by substantially endangering the leased property by neglecting to exercise the care incumbent upon him or by allowing a third party to use it without authorisation , or the lessee a)is in default , on two successive dates , of payment of the rent or of a portion of the rent that is not insignificant , or b)in a period of time spanning more than two dates is in default of payment of the rent in an amount that is as much as the amount of rent for two months . In the case of sentence 1 no . 3 , termination is excluded if the lessor has by then obtained satisfaction . It becomes ineffective if the lessee has succeeded in discharging his debt by set-off and declares set-off without undue delay after notice of termination is given .
=S=> BGB 543. 3 If the compelling reason consists in the violation of an obligation under the lease , then the notice of termination is only permitted after the expiry without result of a reasonable period specified for the purpose of obtaining relief or after an unheeded warning notice . This does not apply if a notice period or a warning notice obviously shows no chance of succeeding , immediate termination for special reasons is justified , weighing the interests of both parties , or the lessee is in default of payment of rent within the meaning of subsection ( 2 ) no . 3.
=S=> BGB 543. 4 Sections 536b and 536d are to be applied with the necessary modifications to the right to notice of termination to which the lessee is entitled under subsection ( 2 ) no . 1. If it is in dispute whether the lessor granted use of the leased property in good time or provided relief prior to expiry of the period specified for this purpose , then he bears the burden of proof .

=U4= Sec544 -- Section 544 Lease for more than thirty years

-- =S=> BGB 544 If a lease agreement is signed for a period of more than thirty years , then each of the parties to the contract , after thirty years have passed , may after surrender of the leased property terminate the lease for cause with the statutory notice period . Termination is not permissible if the agreement has been signed for the duration of the life of the lessor or lessee .

=U4= Sec545 -- Section 545 Tacit extension of the lease

-- =S=> BGB 545 If the lessor continues to use the leased property after the end of the lease period , then the lease is extended for an indefinite period of time , unless one of the parties to the contract has declared his intention to the contrary to the other party within two weeks . The period commences for the lessee upon continuation of use , for the lessor at the point of time when he receives knowledge of the continuation .

=U4= Sec546 -- Section 546 Duty of lessee to return

-- =S=> BGB 546. 1 The lessee is obliged to return the leased property after termination of the lease .
=S=> BGB 546. 2 If the lessee has permitted a third party to use the leased property , the lessor may also demand return of the leased property from the third party after termination of the lease .

=U4= Sec546a -- Section 546a Compensation of the lessor in the case of late return

-- =S=> BGB 546a. 1 If the lessee fails to return the leased property after termination of the lease , the lessor may for the duration of retention demand as compensation the agreed rent or the rent that is customarily paid for comparable items in the locality .
=S=> BGB 546a. 2 The assertion of further damage is not excluded .

=U4= Sec547 -- Section 547 Reimbursement of rent paid in advance

-- =S=> BGB 547. 1 Where rent has been paid in advance for the period after termination of the lease , the lessor must reimburse it with interest accrued since receiving it . If the lessor is not responsible for termination of the lease , then he must reimburse his gains under the provisions on the return of unjust enrichment .
=S=> BGB 547. 2 In the case of a lease for residential space , any deviating agreement to the disadvantage of the lessee is ineffective .

=U4= Sec548 -- Section 548 Limitation of compensation claims and right of removal

-- =S=> BGB 548. 1 The compensation claims of the lessor for modifications to or deterioration of the leased property are subject to a six-month limitation period . The limitation period commences at the time when the leased property is returned to him . When the claim of the lessor to return of the leased property is statute-barred , the compensation claims of the lessor are likewise statute-barred .
=S=> BGB 548. 2 The claims of the lessee to reimbursement of expenses or to permission to remove an installation are subject to a six-month limitation period after the termination of the lease .
=S=> BGB 548. 3 ( repealed )

=U3= UTit2 -- Subtitle 2 Leases for residential space

=U4= Kap1 -- Chapter 1 General provisions

=U5= Sec549 -- Section 549 Provisions applicable to leases of residential space

-- =S=> BGB 549. 1 Sections 535 to 548 apply to leases relating to residential space to the extent not otherwise stipulated by sections 549 to 577a.
=S=> BGB 549. 2 The provisions relating to rent increases ( sections 557 to 561 ) and to lessee protection upon termination of the lease as well as when residential property is created ( section 568 ( 2 ) , sections 573 , 573a and 573 d ( 1 ) , sections 574 to 575 , 575a ( 1 ) and sections 577 and 577a ) do not apply to leases of residential space that is leased only for temporary use , residential space that is part of the dwelling inhabited by the lessor himself and has largely to be furnished with furniture and fixtures by the lessor himself , provided that permission to use the residential space has not been given for permanent use to the lessee with his family or with persons with whom he maintains a joint household set up permanently , residential space that a legal person under public law or a recognised private welfare work organisation has leased to permit use by persons in urgent need of accommodation if , when the lease was entered into , it drew the attention of the lessee to the intended purpose of the residential space and to its exemption from the provisions referred to above .
=S=> BGB 549. 3 Sections 557 to 561 and sections 573 , 573a and 573d ( 1 ) and sections 575 , 575a ( 1 ) and sections 577 and 577a do not apply to residential space in a student hostel or a hostel for young people .

=U5= Sec550 -- Section 550 Form of the lease agreement

-- =S=> BGB 550 If a lease agreement for a longer period of time than one year is not entered into in written form , then it applies for an indefinite period of time . However , termination is only allowed at the earliest at the end of one year after use of the residential space has been permitted .

=U5= Sec551 -- Section 551 Restriction and investment of rent security deposits

-- =S=> BGB 551. 1 If the lessee must give the lessor a security deposit for the performance of his duties , then this security deposit , subject to subsection ( 3 ) sentence 4 , may amount at most to three times the rent for one month , exclusive of the operating costs shown as a lump sum or as an advance payment .
=S=> BGB 551. 2 If security is to be provided in the form of a sum of money , then the lessee is entitled to pay in three equal monthly instalments . The first instalment is due upon commencement of the lease .
=S=> BGB 551. 3 The lessor must invest a sum of money transferred to him as a deposit with a banking institution at the usual rate of interest for savings deposits with withdrawal notice of three months . The parties to the contract may agree on another form of investment . In either case the investment must be made separately from the assets of the lessor and the lessee is entitled to the income . It accrues to the security deposit . For residential space in a student hostel or a hostel for young people , there is no duty for the lessor to pay interest on the security deposit .
=S=> BGB 551. 4 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec552 -- Section 552 Warding off the right of removal of the lessee

-- =S=> BGB 552. 1 The lessor may ward off exercise of the right of removal ( section 539 ( 2 ) ) by payment of appropriate compensation unless the lessee has a justified interest in removal .
=S=> BGB 552. 2 An agreement excluding the right of removal is only effective if reasonable compensation is provided for .

=U5= Sec553 -- Section 553 Permitting use by third parties

-- =S=> BGB 553. 1 If the lessee , after entering into the lease agreement , acquires a justified interest in permitting a third party to use part of the residential space , then he may demand permission to do so from the lessor . This does not apply if there is a compelling reason in the person of the third party , if the residential space would be overcrowded or if the lessor cannot for other reasons reasonably be expected to permit third-party use .
=S=> BGB 553. 2 If the lessor can only be expected to permit third-party use on a reasonable increase of the rent , then he may make permission dependent upon the lessee agreeing to such an increase in rent .
=S=> BGB 553. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec554 -- Section 554 Toleration of conservation and modernisation measures

-- =S=> BGB 554. 1 The lessee must tolerate measures required for conservation of the leased property .
=S=> BGB 554. 2 The lessee must tolerate measures taken to improve the leased property , to save energy or water or to create new residential space . This does not apply if the measure would be , for him , his family or another member of his household , a hardship that is not justifiable even considering the justified interests of the lessor and other lessees in the building . In this context , including , without limitation , the work to be undertaken , the structural consequences , prior outlays by the lessee and the increase to be expected in the rent are to be taken into account . The increase to be expected in the rent is not to be deemed a hardship if the leased property is merely restored to a generally customary condition .
=S=> BGB 554. 3 In the case of measures under subsection ( 2 ) sentence 1 , the lessor must at the latest three months prior to commencement of the measure inform the lessee in writing of their nature , their estimated scope and commencement , estimated duration and the increase in rent to be expected . The lessee is entitled , up to the end of the month subsequent to the month when notification is received , to give notice for cause with effect to the end of the following month . These provisions do not apply in case of measures having only an insignificant effect on the premises leased and entailing only an insignificant increase in rent .
=S=> BGB 554. 4 Outlays which the lessee had to make as a result of a measure under subsections ( 1 ) or ( 2 ) sentence 1 must be reimbursed to a reasonable extent by the lessor . Upon demand he must make an advance payment .
=S=> BGB 554. 5 An agreement deviating from subsections ( 2 ) to ( 4 ) to the disadvantage of the lessee is ineffective .

=U5= Sec554a -- Section 554a Accessibility

-- =S=> BGB 554a. 1 The lessee may demand the approval of the lessor to structural changes or other installations required to make the use of the leased property or access to it fit for the needs of the disabled , if he has a justified interest in this . The lessor may refuse approval if his interest in maintaining the leased property or building unchanged outweighs the interest of the lessee in making use of the leased property fit for the needs of the disabled . When this is done , the justified interests of the other lessees in the building are to be taken into account .
=S=> BGB 554a. 2 The lessor may make his approval dependent upon payment of a reasonable additional security deposit for restoration of the original condition . Section 551 ( 3 ) and ( 4 ) applies with the necessary modifications .
=S=> BGB 554a. 3 An agreement deviating from subsection ( 1 ) to the disadvantage of the lessee is ineffective .

=U5= Sec555 -- Section 555 Ineffectiveness of contractual penalty

-- =S=> BGB 555 An agreement by which the lessor binds the lessee to promise a contractual penalty is ineffective .

=U4= Kap2 -- Chapter 2 Rent Subchapter 1 Agreements on rent

=U5= Sec556 -- Section 556 Agreements on operating costs

-- =S=> BGB 556. 4 An agreement deviating to the disadvantage of the lessee from subsections ( 1 ) and ( 2 ) sentence 2 or subsection ( 3 ) is ineffective .

=U5= Sec556a -- Section 556a Accounting criterion for operating costs

-- =S=> BGB 556a. 1 If the parties to the contract have not agreed otherwise and subject to other provisions , operating costs are to be apportioned in proportion to the floor space . Operating costs depending on recorded consumption or causation by the lessees are to be apportioned according to criteria that take into account the differing consumption or causation .
=S=> BGB 556a. 2 If the parties to the contract have agreed otherwise , the lessor may by declaration in text form specify that the operating costs may in future , contrary to the agreement reached , be apportioned in whole or in part according to a criterion that takes into account the recorded differing consumption or the recorded differing causation . The declaration may only be made prior to commencement of an accounting period . If the costs have previously been included in the rent , the rent is to be reduced accordingly .
=S=> BGB 556a. 3 An agreement deviating to the disadvantage of the lessee from subsection ( 2 ) is ineffective .

=U5= Sec556b -- Section 556b Due date of rent , right to set-off and right of retention

-- =S=> BGB 556b. 1 Rent is to be paid at the commencement of the periods of time according to which it is computed but at the latest by the third working day of each such period .
=S=> BGB 556b. 2 The lessee may , notwithstanding a contract provision to the contrary , set off a claim based on sections 536a and 539 or a claim for unjust enrichment for excess payment of rent against a claim for rent , or may exercise a right of retention in relation to such a claim if he has notified the lessor in text form of his intention to do so at least one month prior to the due date of the rent . A deviating agreement to the disadvantage of the lessee is ineffective . Subchapter 2 Provisions on the rent amount

=U5= Sec557 -- Section 557 Increases in rent by agreement or law

-- =S=> BGB 557. 1 During the lease , the parties may agree an increase in rent .
=S=> BGB 557. 2 Future changes in the amount of rent may be agreed by the parties to the contract as stepped rent under section 557a or as indexed rent under section 557b.
=S=> BGB 557. 3 Apart from this , the lessor may only demand rent increases under the provisions of sections 558 to 560 to the extent that an increase is not excluded by agreement or the exclusion emerges from the circumstances .
=S=> BGB 557. 4 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec557a -- Section 557a Stepped rent

-- =S=> BGB 557a. 1 The rent may be agreed in writing in varying amounts for specific periods of time ; in the agreement , each rent amount or each increase must be indicated as a monetary amount ( stepped rent ) .
=S=> BGB 557a. 2 The rent must remain unchanged on each occasion for at least one year . During the period of stepped rent , an increase under sections 558 to 559b is excluded .
=S=> BGB 557a. 3 The right of the lessee to give notice may be excluded for a maximum of four years after the stepped rent agreement is entered into . Notice of termination is allowed to the end of this period at the earliest .
=S=> BGB 557a. 4 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec557b -- Section 557b Indexed rent

-- =S=> BGB 557b. 1 The parties to the contract may agree in writing that the rent is to be determined by means of the price index for the cost of living of all private households in Germany computed by the Federal Statistics Office [ Statistisches Bundesamt ] ( indexed rent ) .
=S=> BGB 557b. 2 While an indexed rent is applicable , the rent , except for increases under sections 559 to 560 , must remain unchanged for at least one year at a time . An increase under section 559 may only be demanded to the extent that the lessor has carried out structural measures due to circumstances for which he is not responsible . An increase under section 558 is excluded .
=S=> BGB 557b. 3 A change in rent under subsection ( 1 ) must be made by declaration in text form . In this declaration , the change in the price index that has occurred as well as the rent in the individual case or the increase must be indicated as a monetary amount . The revised rent must be paid at the commencement of the second month beginning after receipt of the declaration .
=S=> BGB 557b. 4 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec558 -- Section 558 Increase in rent up to the reference rent customary in the locality

-- =S=> BGB 558. 1 The lessor may demand approval of an increase in rent up to the reference rent customary in the locality if , at the time when the increase is to occur , the rent has remained unchanged for fifteen months . The demand for a rent increase may be made at the earliest one year after the most recent rent increase . Increases under sections 559 to 560 are not taken into account .
=S=> BGB 558. 2 The reference rent customary in the locality is formed from the usual payments that have been agreed or , with the exception of increases under section 560 , that have been changed in the last four years in the municipality or in a comparable municipality for residential space that is comparable in type , size , furnishings , quality and location . Exempted from this is residential space where the amount of rent has been stipulated by law or in connection with a promise of sponsorship .
=S=> BGB 558. 3 In the case of increases under subsection ( 1 ) , the rent may not be raised within three years , except for increases under sections 559 to 560 , by more than twenty per cent ( capping limit ) .
=S=> BGB 558. 4 The capping limit does not apply if a duty of the lessee to make compensation payments under the provisions on the reduction of improper subsidisation in housing has lapsed because the public-sector connection has ceased , and to the extent that the increase does not exceed the amount of the most recently payable compensation payment . The lessor may at the earliest four months prior to the cessation of the public-sector connection demand that the lessee inform him within one month of the duty to pay compensation and of its amount . Sentence 1 applies with the necessary modifications if the duty of the lessee to make a compensation payment under sections 34 to 37 of the Residential Housing Subsidisation Act [ Wohnraumförderungsgesetz ] and provisions of Land law issued thereunder has lapsed due to the repeal of rent control .
=S=> BGB 558. 5 From the annual amount that would result in the case of an increase to the reference rent customary in the locality , third-party funds within the meaning of section 559a are to be deducted , in the case of section 559a ( 1 ) in the amount of eleven per cent of the subsidy .
=S=> BGB 558. 6 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec558a -- Section 558a Form and justification of the rent increase

-- =S=> BGB 558a. 1 A rent increase demand under section 558 must be declared and justified to the lessee in text form .
=S=> BGB 558a. 2 In justification , reference may in particular be made to a list of representative rents ( sections 558c and 558d ) , information from a rent database ( section 558e ) , an opinion , provided with supporting grounds , by an officially appointed and sworn expert , examples of equivalent payment for individual comparable dwellings ; in this case , it is sufficient to name three dwellings .
=S=> BGB 558a. 3 If an expert list of representative rents ( section 558d ( 1 ) ) , where the provisions of section 558d ( 2 ) have been complied with , contains information for the dwelling , then the lessor must in his demand for a rent increase communicate such information even if he wishes to support his rent increase by another means of justification under subsection ( 2 ) .
=S=> BGB 558a. 4 When making reference to a list of representative rents containing spans , it is sufficient if the rent demanded lies within the span . If , at the time when the lessor makes his declaration , no list of representative rents in which sections 558c ( 3 ) or 558d ( 2 ) have been complied with is available , then another list of representative rents , in particular an outdated one , or a list of representative rents from a comparable municipality may be used .
=S=> BGB 558a. 5 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec558b -- Section 558b Approval of a rent increase

-- =S=> BGB 558b. 1 To the extent that the lessee approves the rent increase , he owes the increased rent from the beginning of the third calendar month after receipt of the demand for an increase .
=S=> BGB 558b. 2 To the extent that the lessee does not approve of the rent increase by the end of the second calendar month after receipt of the demand , the lessor may sue for grant of approval . An action must be brought within three additional months .
=S=> BGB 558b. 3 If the action is preceded by a demand for increase that does not comply with the requirements of section 558a , then the lessor may correct this in the legal dispute or remedy the defects in the demand for increase . In this case too , the lessee is entitled to the approval period under subsection ( 2 ) sentence 1.
=S=> BGB 558b. 4 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec558c -- Section 558c List of representative rents

-- =S=> BGB 558c. 1 A list of representative rents is a table showing the reference rent customary in the locality , if the table has been jointly produced or recognised by the municipality or by representatives of lessors and lessees .
=S=> BGB 558c. 2 Lists of representative rents may be produced for the area of one municipality or of more than one municipality or for parts of municipalities .
=S=> BGB 558c. 3 Lists of representative rents should be adjusted for market trends at intervals of two years .
=S=> BGB 558c. 4 Municipalities should produce lists of representative rents if there is a need for this and if this is possible at a reasonable cost . The lists of representative rents and the changes to them should be published .
=S=> BGB 558c. 5 The Federal Government is authorised , by statutory order issued with the approval of the Federal Council [ Bundesrat ] , to issue provisions on the detailed contents and on the procedure for drawing up and adjusting lists of representative rents .

=U5= Sec558d -- Section 558d Expert list of representative rents

-- =S=> BGB 558d. 1 An expert list of representative rents is a list of representative rents produced according to recognised scientific principles and recognised by the municipality or by representatives of lessors and lessees .
=S=> BGB 558d. 2 The expert list of representative rents is to be adjusted for market trends at intervals of two years . When this is done , a spot check or the trend of the price index for living standards of all private households in Germany computed by the Federal Statistical Office [ Statistisches Bundesamt ] may be used as a basis . After four years a new expert list of representative rents must be produced .
=S=> BGB 558d. 3 If the provisions of subsection ( 2 ) are complied with , then it is assumed that the payment cited in the expert list of representative rents reflects the reference rent customary in the locality .

=U5= Sec558e -- Section 558e Rent database

-- =S=> BGB 558e A rent database is a collection of rents maintained on an ongoing basis to determine the reference rent customary in the locality ; this database is jointly maintained or recognised by the municipality or by representatives of lessors and lessees , and information is issued on the basis of this database that makes it possible to come to a conclusion as to the reference rent customary in the locality with regard to individual dwellings .

=U5= Sec559 -- Section 559 Rent increase in case of modernisation

-- =S=> BGB 559. 1 If the lessor has carried out construction measures that increase the utility value of the leased property with lasting effect , improve general living conditions permanently or lead to savings of energy or water with lasting effect ( modernisation ) , or if he has carried out other construction measures due to circumstances for which he is not responsible , then he may increase the annual rent by 11 per cent of the costs spent on the dwelling .
=S=> BGB 559. 2 If the construction measures have been carried out for more than one dwelling , then the costs must be apportioned reasonably among the individual dwellings .
=S=> BGB 559. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec559a -- Section 559a Crediting of third-party funds

-- =S=> BGB 559a. 1 Costs assumed by the lessee or assumed by a third party for the lessee or covered by subsidies from public authorities do not form part of costs spent within the meaning of section 559.
=S=> BGB 559a. 2 If the costs of the construction measures are covered in full or in part by low-interest or interest-free loans from public authorities , then the amount of the increase under section 559 is reduced by the annual amount of the interest reduction . The latter is calculated from the difference between the reduced rate of interest and the going market interest rate for the original amount of the loan . The going market interest rate for first-priority mortgages at the date when the measures ended is conclusive . If subsidies or loans are used to cover ongoing outlays , then the amount of the increase is reduced by the annual amount of the subsidy or loan .
=S=> BGB 559a. 3 A lessee loan , an advance rent payment or a service performed for the lessee by a third party for the construction measures are equivalent to a loan from public authorities . Funds from the financial institutions of the Federal Government or of a Land are deemed to be funds from public authorities .
=S=> BGB 559a. 4 If it cannot be ascertained in what amount subsidies or loans have been granted for the individual dwellings , then they must be apportioned according to the ratio of costs spent on individual dwellings .
=S=> BGB 559a. 5 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec559b -- Section 559b Assertion of an increase ; effect of declaration of increase

-- =S=> BGB 559b. 1 The rent increase under section 559 must be declared to the lessee in text form . The declaration is only effective if in it the increase is calculated on the basis of the costs incurred and explained in accordance with the requirements of sections 559 and 559a.
=S=> BGB 559b. 2 The lessee owes the increased rent from the beginning of the third month after receipt of the declaration . The period is extended by six months if the lessor has failed to notify the lessee of the expected increase in rent as required by section 554 ( 3 ) sentence 1 or if the de facto rent increase is more than ten per cent greater than the increase notified .
=S=> BGB 559b. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec560 -- Section 560 Changes in operating costs

-- =S=> BGB 560. 5 In the case of changes in operating costs , the principle of economic efficiency must be observed .
=S=> BGB 560. 6 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec561 -- Section 561 Special right of termination of the lessee following a rent increase

-- =S=> BGB 561. 1 If the lessor asserts a right to a rent increase under sections 558 or 559 , then , until the end of the second month after receipt of the declaration of the lessor , the lessee may terminate the lease for cause by special notice to the end of the second month thereafter . If the lessee gives notice of termination , then the rent increase does not take effect .
=S=> BGB 561. 2 A deviating agreement to the disadvantage of the lessee is ineffective .

=U4= Kap3 -- Chapter 3 Security right of the lessor

=U5= Sec562 -- Section 562 Extent of the security right of the lessor

-- =S=> BGB 562. 1 The lessor , for his claims under the lease , has a security right over things contributed by the lessee . It does not extend to the things that are not subject to attachment .
=S=> BGB 562. 2 The security right may not be asserted for future compensation claims and for rent for periods subsequent to the current and the following year of the lease .

=U5= Sec562a -- Section 562a Extinction of the security right of the lessor

-- =S=> BGB 562a The security right of the lessor is extinguished upon the removal of the things from the plot of land , except if this removal occurs without the knowledge of or despite the objection of the lessor . The lessor may not object if this is consistent with the ordinary circumstances of life or if things left behind evidently suffice to give the lessor security .

=U5= Sec562b -- Section 562b Self-help ; claim for return

-- =S=> BGB 562b. 1 The lessor may prevent the removal of the things that are subject to his security right , even without having recourse to the court , to the extent that he is entitled to object to removal . If the lessee moves out , the lessor may take possession of these things .
=S=> BGB 562b. 2 If the things have been removed without the knowledge of or despite the objection of the lessor , then he may demand surrender of the items for the purpose of returning them to the plot of land and , if the lessee has moved out , surrender of possession . The security right is extinguished at the end of one month after the lessor has obtained knowledge of removal of the things , unless he has previously asserted this claim in court .

=U5= Sec562c -- Section 562c Warding off the security right by provision of security

-- =S=> BGB 562c The lessee may ward off assertion of the security right of the lessor by provision of security . He may release each individual thing from the security right by providing security in the amount of its value .

=U5= Sec562d -- Section 562d Attachment by a third party

-- =S=> BGB 562d If a thing subject to the security right of the lessor is attached for another creditor , then in relation to this other creditor the security right may not be asserted for rent from an earlier period than the last year prior to the attachment .

=U4= Kap4 -- Chapter 4 Change of parties to the contract

=U5= Sec563 -- Section 563 Right of succession upon death of the lessee

-- =S=> BGB 563. 1 A spouse who maintains a joint household with the lessee succeeds to the lease upon the death of the lessee . The same applies to a civil partner .
=S=> BGB 563. 2 If children of the lessee live in the joint household of the lessee , then these children succeed to the lease on the death of the lessee if the spouse does not succeed . The succession of the civil partner is not affected by the succession of the children of the lessee . Other family members who maintain a joint household with the lessee succeed to the lease on the death of the lessee if the spouse or the civil partner does not succeed . The same applies to persons who maintain a joint household of a permanent nature with the lessee .
=S=> BGB 563. 3 If persons who have succeeded to the lease within the meaning of subsection ( 1 ) or ( 2 ) declare to the lessor within one month of obtaining knowledge of the death of the lessee that they do not wish to continue the lease , the succession is deemed not to have occurred . For persons without capacity to contract or having limited capacity to contract , section 210 applies with the necessary modifications . If more than one person succeeds to the lease , then each may make the declaration on his own behalf .
=S=> BGB 563. 4 The lessor may terminate the lease for cause with the statutory notice period within one month after obtaining knowledge of the definitive succession to the lease if there is a compelling reason in the person of the successor .
=S=> BGB 563. 5 A deviating agreement to the disadvantage of the lessee or of such persons as are entitled to succeed under subsection ( 1 ) or ( 2 ) is ineffective .

=U5= Sec563a -- Section 563a Continuation with surviving lessees

-- =S=> BGB 563a. 1 If more persons than one within the meaning of section 563 are joint lessees , then the lease is continued , after the death of one lessee , with the surviving persons .
=S=> BGB 563a. 2 The surviving lessees may , within one month after obtaining knowledge of the death of the lessee , terminate the lease for cause with the statutory notice period .
=S=> BGB 563a. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec563b -- Section 563b Liability in the case of succession or continuation

-- =S=> BGB 563b. 1 The persons who succeed to the lease under section 563 or with whom it is continued under section 563a are liable together with the heir as joint and several debtors for obligations incurred up to the death of the lessee . In relation to these persons , the heir has sole liability to the extent that nothing else has been specified .
=S=> BGB 563b. 2 If the lessee paid rent in advance for a period of time subsequent to his death , the persons who succeed to the lease under section 563 or with whom it is continued under section 563a are obliged to surrender to the heir the sum that they save or gain due to such advance payment .
=S=> BGB 563b. 3 The lessor may , if the deceased lessee did not provide any security , demand provision of security under section 551 from persons who succeed to the lease under section 563 or with whom it is continued under section 563a.

=U5= Sec564 -- Section 564 Continuation of the lease with the heir ; termination for cause

-- =S=> BGB 564 If , on the death of the lessee , no persons within the meaning of section 563 succeed to the lease or the lease is not continued with them under section 563a , then it is continued with the heir . In this case , both the heir and the lessor are entitled to terminate the lease for cause within one month with the statutory notice period after they obtain knowledge of the death of the lessee and of the fact that there has been no succession to the lease and no continuation thereof .

=U5= Sec565 -- Section 565 Commercial subletting

-- =S=> BGB 565. 1 If under the lease agreement the lessee is to sublet the leased residential space to a third party on a commercial basis for residential purposes , then upon termination of the lease the lessor takes over the rights and duties under the lease agreement between the lessee and the third party . If the lessor enters into a new lease agreement for subletting on a commercial basis , then the lessee , in place of the previous party to the contract , takes over the rights and duties under the lease agreement with the third party .
=S=> BGB 565. 2 Sections 566 to 566e apply with the necessary modifications .
=S=> BGB 565. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec566 -- Section 566 Purchase is subject to existing leases

-- =S=> BGB 566. 1 If , after the lessee is given use of the leased residential space , it is disposed of by the lessor to a third party , then the acquirer , in place of the lessor , takes over the rights and duties that arise under the lease agreement during the period of his ownership .
=S=> BGB 566. 2 If the acquirer does not perform his duties , then the lessor is liable in the same way as a surety who has waived the defence of unexhausted remedies for the damage to be compensated for by the acquirer . If the lessee obtains knowledge of the passing of ownership by notification from the lessor , then the lessor is released from liability unless the lessee terminates the lease to the earliest date at which termination is allowed .

=U5= Sec566a -- Section 566a Rent security deposit

-- =S=> BGB 566a If the lessee of the residential space disposed of has provided security to the lessor for the performance of his duties , then the acquirer takes over the rights and duties created by this . If , upon termination of the lease , the lessee is unable to obtain the security from the acquirer , then the lessor continues to be obliged to return it .

=U5= Sec566b -- Section 566b Advance disposition of the rent

-- =S=> BGB 566b. 1 If the lessor , prior to the passing of ownership , disposes of the rent attributable to the period when the acquirer is entitled , then the disposition is effective to the extent that it relates to the rent for the calendar month current at the time when the ownership passes . If ownership passes after the fifteenth day of the month , then the disposition is also effective to the extent that it relates to the rent for the following calendar month .
=S=> BGB 566b. 2 The acquirer must allow a disposition of the rent for a later period to be asserted against himself if he has knowledge of it at the time when ownership passes .

=U5= Sec566c -- Section 566c Agreement between lessee and lessor on the rent

-- =S=> BGB 566c A legal transaction entered into between lessee and lessor on the rent claim , including without limitation payment of rent , is effective in relation to the acquirer to the extent that it does not relate to rent for a period of time subsequent to the calendar month in which the lessee obtains knowledge of the passing of ownership . If the lessee obtains knowledge of this after the fifteenth day of the month , then the legal transaction is also effective to the extent that it relates to the rent for the next calendar month . A legal transaction undertaken after the passing of ownership is , however , ineffective if the lessee has knowledge of the passing of ownership when the legal transaction is entered into .

=U5= Sec566d -- Section 566d Set-off by the lessee

-- =S=> BGB 566d To the extent that payment of the rent to the lessor is effective in relation to the acquirer under section 566c , the lessee can set off against the claim to rent of the acquirer a claim to which he is entitled against the lessor . Set-off is excluded if the lessee acquires the counterclaim after obtaining knowledge of the passing of ownership , or if the counterclaim becomes due only after the lessee obtains knowledge and after the rent becomes due .

=U5= Sec566e -- Section 566e Notification by the lessor of passing of ownership

-- =S=> BGB 566e. 1 If the lessor notifies the lessee that he has transferred ownership of the leased residential space to a third party , then he must , in regard to the rent claim , allow the notification of the transfer to be asserted against himself by the lessee even if it has not occurred or is not effective .
=S=> BGB 566e. 2 The notification may be retracted only with the approval of the person who has been named as the new owner .

=U5= Sec567 -- Section 567 Encumbrance of the residential space by the lessor

-- =S=> BGB 567 If , subsequent to permission of use to the lessee , the leased residential space is encumbered by the lessor with a third-party right , then sections 566 to 566e are to be applied with the necessary modifications if by exercise of the right the lessee is deprived of the use of it in conformity with the contract . If the lessee is restricted by the exercise of this right in his use in conformity with the contract , then the third party has a duty to the lessee to refrain from exercising the right to the extent that exercising the right would adversely affect use in conformity with the contract .

=U5= Sec567a -- Section 567a Disposal or encumbrance prior to permission of use of residential space

-- =S=> BGB 567a If , prior to transferring the use of the leased residential space to the lessee , the lessor disposes of the residential space to a third party or encumbers it with a right by the exercise of which the lessee is deprived of or restricted in the use of it in conformity with the contract , then the same applies as in the cases of sections 566 ( 1 ) and 567 if the acquirer has agreed with the lessor to take over the performance of the duties arising from the lease agreement .

=U5= Sec567b -- Section 567b Further disposal or encumbrance by the acquirer

-- =S=> BGB 567b If the leased residential space is further disposed of or encumbered by the acquirer , then sections 566 ( 1 ) and sections 566a to 567a are to be applied with the necessary modifications . If the new acquirer fails to perform the duties arising from the lease , then the lessor is liable to the lessee under section 566 ( 2 ) .

=U4= Kap5 -- Chapter 5 Termination of the lease Subchapter 1 General provisions

=U5= Sec568 -- Section 568 Form and contents of the notice of termination

-- =S=> BGB 568. 1 The notice of termination of the lease must be in written form .
=S=> BGB 568. 2 The lessor should , in good time , draw the attention of the lessee to the possibility of an objection and the form and period for the objection under sections 574 to 574b.

=U5= Sec569 -- Section 569 Termination for cause without notice for a compelling reason

-- =S=> BGB 569. 1 A compelling reason within the meaning of section 543 ( 1 ) for the lessee also exists if the leased residential space is in such a condition that its use entails a significant endangerment of health . This also applies if the lessee knew of the hazardous condition when he entered into the lease agreement or waived his rights arising from this condition .
=S=> BGB 569. 2 A compelling reason within the meaning of section 543 ( 1 ) also exists if one party to the contract permanently disturbs the domestic peace in such a way that the party giving notice , taking all circumstances of the specific case into account , including without limitation fault of the parties to the contract , and weighing the interests of both parties , cannot reasonably be expected to continue the lease to the end of the notice period or until the lease is terminated in another way .
=S=> BGB 569. 3 In supplement to section 543 ( 2 ) sentence 1 no . 3 , the rules are : In the case of section 543 ( 2 ) sentence 1 , no . 3 , letter a , the part of the rent in arrears may only be deemed not to be insignificant if it exceeds the rent for one month . This does not apply if the residential space is leased only for temporary use . The notice of termination also becomes ineffective if , at the latest by the end of two months after the eviction claim is pending , the lessor is satisfied or a public authority agrees to satisfy the lessor with regard to the rent due and the compensation due under section 546a ( 1 ) . This does not apply if , no longer than two years earlier , the notice of termination was preceded by a notice of termination that became ineffective under sentence 1 above . If the lessee has been finally and absolutely ordered to pay an increased rent under sections 558 to 560 , then the lessor may not terminate the lease for default in payment of the lessee before the end of two months after the final and absolute order unless the requirements for termination for cause without notice have already been satisfied due to rent previously owed .
=S=> BGB 569. 4 The compelling reason leading to termination must be stated in the notice of termination .
=S=> BGB 569. 5 An agreement diverging from subsections ( 1 ) to ( 3 ) of this provision or from section 543 to the disadvantage of the lessee is ineffective . In addition , an agreement is also ineffective under which the lessor is to be entitled to terminate the lease for cause without notice for other reasons than those permitted by law .

=U5= Sec570 -- Section 570 Exclusion of the right of retention

-- =S=> BGB 570 The lessee is not entitled to any right of retention against the claim to return of the lessor .

=U5= Sec571 -- Section 571 Further damages for late return of residential space

-- =S=> BGB 571. 1 If the lessee fails to return the leased residential space upon termination of the lease , then the lessor may only assert further damages within the meaning of section 546a ( 2 ) if the return failed to occur for reasons for which the lessee is responsible . Damage is only to be compensated for to the extent that equity demands indemnification . This does not apply if the lessee has given notice of termination .
=S=> BGB 571. 2 If the lessee is granted a period of time before vacating the premises under section 721 or section 794a of the Code of Civil Procedure [ Zivilprozessordnung ] , then he is not liable for compensation for further damage until the end of the period of time .
=S=> BGB 571. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec572 -- Section 572 Agreement on right of withdrawal ; lease subject to condition subsequent

-- =S=> BGB 572. 1 The lessor may not invoke an agreement by which the lessor is intended to be entitled to withdraw from the lease agreement after he has permitted the lessee to use the residential space .
=S=> BGB 572. 2 In addition , the lessor may not invoke an agreement by which the lease is subject to a condition subsequent to the disadvantage of the lessee . Subchapter 2 Leases for an indefinite period of time

=U5= Sec573 -- Section 573 Notice of termination by the lessor

-- =S=> BGB 573. 1 The lessor may only give notice if he has a justified interest in the termination of the lease . Notice of termination for the purpose of increasing the rent is excluded .
=S=> BGB 573. 2 A justified interest of the lessor in the termination of the lease exists , without limitation , in cases where the lessee has culpably and non-trivially violated his contractual duties , the lessor needs the premises as a dwelling for himself , members of his family or members of his household , or the lessor , by continuing the lease , would be prevented from making appropriate commercial use of the plot of land and would as a result suffer substantial disadvantages ; the possibility of attaining a higher rent by leasing the residential space to others is disregarded ; the lessor may likewise not invoke the fact that he wishes to dispose of the residential premises in connection with an intention to create apartment ownership , or in connection with a creation of apartment ownership that took place after use of the residential space was granted to the lessee .
=S=> BGB 573. 3 The reasons for a justified interest of the lessor must be indicated in the notice of termination . Other reasons are taken into account only to the extent that they arose subsequently .
=S=> BGB 573. 4 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec573a -- Section 573a Simplified termination by the lessor

-- =S=> BGB 573a. 1 The lessor may also terminate a lease of a dwelling in a building inhabited by the lessor himself and having no more than two dwellings without the need for a justified interest within the meaning of section 573. The notice period is in this case extended by three months .
=S=> BGB 573a. 2 Subsection ( 1 ) applies with the necessary modifications to residential space inside the dwelling inhabited by the lessor himself to the extent that the residential space is not exempted from lessee protection under section 549 ( 2 ) no . 2.
=S=> BGB 573a. 3 In the letter containing notice of termination it must be stated that the termination is based on the requirements of subsection ( 1 ) or ( 2 ) .
=S=> BGB 573a. 4 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec573b -- Section 573b Partial termination by the lessor

-- =S=> BGB 573b. 1 The lessor may terminate the lease of side rooms or parts of a plot of land that are not intended as residential without a justified interest within the meaning of section 573 if he limits the notice of termination to these rooms or parts of the plot of land and if he wishes to use them to create residential space for the purpose of leasing , or to provide the intended or existing residential space with side rooms or parts of a plot of land .
=S=> BGB 573b. 2 Notice of termination is allowed at the latest on the third working day of a calendar month to the end of the second month thereafter .
=S=> BGB 573b. 3 If commencement of construction work is delayed , then the lessee may demand an extension of the lease by an equivalent period of time .
=S=> BGB 573b. 4 The lessee may demand an appropriate reduction of the rent .
=S=> BGB 573b. 5 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec573c -- Section 573c Termination notice periods

-- =S=> BGB 573c. 1 Notice of termination is allowed at the latest on the third working day of a calendar month to the end of the second month thereafter . The notice period for the lessor is extended , by three months in each case , five and eight years after the lessee is permitted to use the residential space .
=S=> BGB 573c. 2 For residential space that is only leased for temporary use , a shorter notice period may be agreed .
=S=> BGB 573c. 3 For residential space under section 549 ( 2 ) no . 2 , notice of termination is allowed at the latest on the fifteenth day of a month to the end of that month .
=S=> BGB 573c. 4 An agreement deviating from subsections ( 1 ) or ( 3 ) to the disadvantage of the lessee is ineffective .

=U5= Sec573d -- Section 573d Termination for cause with the statutory notice period

-- =S=> BGB 573d. 1 If a lease may be terminated for cause with the statutory notice period , then sections 573 and 573a apply with the necessary modifications , with the exception of notice of termination to the heirs of the lessee under section 564.
=S=> BGB 573d. 2 Notice of termination is allowed at the latest on the third working day of a calendar month to the end of the second month thereafter , and in the case of residential space under section 549 ( 2 ) no . 2 at the latest on the fifteenth day of the month to the end of that month ( statutory period ) . Section 573a ( 1 ) sentence 2 does not apply .
=S=> BGB 573d. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec574 -- Section 574 Objection of lessee to termination

-- =S=> BGB 574. 1 The lessee may object to the notice of termination of the lessor and demand continuation of the lease from the latter if termination of the lease would be , for the lessee , his family or another member of his household , a hardship that is not justifiable even considering the justified interests of the lessor . This does not apply if a reason exists that entitles the lessor to terminate the lease for cause without notice .
=S=> BGB 574. 2 Hardship also exists if appropriate substitute residential space cannot be procured on reasonable terms .
=S=> BGB 574. 3 When the justified interests of the lessor are considered , only the reasons given in the letter containing notice of termination under section 573 ( 3 ) are taken into account , except where the reasons arose subsequently .
=S=> BGB 574. 4 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec574a -- Section 574a Continuation of lease after objection

-- =S=> BGB 574a. 1 In the case of section 574 , the lessee may demand that the lease is continued as long as is appropriate if all circumstances are taken into consideration . If the lessor cannot reasonably be expected to continue the lease under the previously applicable contract terms , then the lessee may only demand that it is continued with an appropriate amendment of the terms .
=S=> BGB 574a. 2 If no agreement is reached , then the continuation of the lease , its duration and the terms under which it is continued are determined by judicial decision . If it is uncertain when the circumstances can be expected to cease on the basis of which termination of the lease would be a hardship , then it may be specified that the lease is to be continued for an indefinite period of time .
=S=> BGB 574a. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec574b -- Section 574b Form and period of objection

-- =S=> BGB 574b. 1 An objection of the lessee to termination must be declared in writing . Upon demand by the lessor , the lessee should without undue delay provide information on the reasons for the objection .
=S=> BGB 574b. 2 The lessor may refuse continuation of the lease if the lessee does not declare the objection to him at the latest two months prior to termination of the lease . If the lessor has not referred to the possibility of objection and to its form and period in good time before the end of the period for filing an objection , then the lessee may declare his objection in the first hearing in the eviction proceedings .
=S=> BGB 574b. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec574c -- Section 574c Further continuation of lease in the case of unforeseen circumstances

-- =S=> BGB 574c. 1 If it has been determined on the basis of sections 574 to 574b by agreement or judicial decision that the lease is to be continued for a definite period of time , then the lessee may only demand its further continuation if this is justified by a material change in circumstances or if circumstances have not come about whose foreseen occurrence was decisive for the period of time the lease was to continue .
=S=> BGB 574c. 2 If the lessor terminates a lease whose continuation for an indefinite period of time has been established by judicial decision , then the lessee may object to the termination and demand from the lessor continuation of the lease for an indefinite period of time . If the circumstances that were decisive for continuation have changed , then the lessee may demand continuation of the lease only under section 574 ; trivial changes are disregarded .
=S=> BGB 574c. 3 A deviating agreement to the disadvantage of the lessee is ineffective . Subchapter 3 Leases for a definite period of time

=U5= Sec575 -- Section 575 Fixed-term lease

-- =S=> BGB 575. 1 A lease may be entered into for a fixed period of time if the lessor upon termination of the lease period wishes to use the premises as a dwelling for himself , members of his family or members of his household , or wishes , admissibly , to eliminate the premises or change or repair them so substantially that the measures would be significantly more difficult as a result of a continuation of the lease , or wishes to lease the premises to a person obliged to perform services and he notifies the lessee in writing of the reasons for the fixed term when the agreement is entered into . Otherwise the lease is deemed to have been entered into for an indefinite period of time .
=S=> BGB 575. 2 The lessee may at the earliest four months prior to expiry of the fixed term demand of the lessor that the lessor notify him within one month whether the grounds for the fixed term still apply . If the notification occurs later , then the lessee may demand an extension of the lease by the period of time of the delay .
=S=> BGB 575. 3 If the reason for the fixed term occurs later , then the lessee may demand an extension of the lease by an equivalent period of time . If the reason ceases , then the lessee may demand an extension for an indefinite period of time . The burden of proof for the occurrence of a reason for setting a fixed term and for the duration of the delay is on the lessor .
=S=> BGB 575. 4 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec575a -- Section 575a Termination for cause with the statutory notice period

-- =S=> BGB 575a. 1 If a lease entered into for a fixed term may be terminated for cause with the statutory notice period , then sections 573 and 573a apply with the necessary modifications , with the exception of notice of termination to the heirs of the lessee under section 564.
=S=> BGB 575a. 2 Sections 574 to 574c apply with the necessary modifications subject to the proviso that the continuation of the lease may be demanded at most until the contractually specified date of termination .
=S=> BGB 575a. 3 Notice of termination is allowed at the latest on the third working day of a calendar month to the end of the second month thereafter , and in the case of residential space under section 549 ( 2 ) no . 2 at the latest on the fifteenth day of the month to the end of the month ( statutory period ) . Section 573a ( 1 ) sentence 2 does not apply .
=S=> BGB 575a. 4 A deviating agreement to the disadvantage of the lessee is ineffective . Subchapter 4 Tied dwellings

=U5= Sec576 -- Section 576 Periods for notice of termination in the case of tied leased dwellings

-- =S=> BGB 576. 1 If residential space is leased in view of the existence of a service relationship , then the lessor may upon termination of the employment and notwithstanding section 573c ( 1 ) sentence 2 terminate the lease with the following notice periods : for residential space the lessee has been permitted to use for less than ten years , at the latest on the third working day of a calendar month to the end of the second month thereafter if the residential space is needed for another person obliged to perform services ; at the latest on the third working day of a calendar month to the end of that month if the service relationship by its nature requires permission to use residential space that is located in immediate relation to or in the immediate vicinity of the place of work and the residential space is needed for the same reason for another person obliged to perform services .
=S=> BGB 576. 2 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec576a -- Section 576a Special features of the right of objection in the case of tied leased dwellings

-- =S=> BGB 576a. 1 When sections 574 to 574c are applied to tied leased dwellings , the interests of the person entitled to services must also be taken into account .
=S=> BGB 576a. 2 Sections 574 to 574c do not apply if the lessor has given notice under section 576 ( 1 ) no 2 ; the lessee has terminated the service relationship without the person entitled to service giving him any legally justified reason for doing so , or the lessee , by his conduct , provided the person entitled to service with legally justified grounds for terminating the service relationship .
=S=> BGB 576a. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec576b -- Section 576b Application of landlord and tenant law with the necessary modifications in connection with tied dwellings

-- =S=> BGB 576b. 1 If permission to use residential space has been given in connection with a service relationship , then the termination of the legal relationship with regard to the residential space is governed by the provisions on leases with the necessary modifications if the person obliged to perform services has predominantly supplied the residential space with furniture and fixtures or lives in the residential space with his family or persons with whom he maintains a joint household set up permanently .
=S=> BGB 576b. 2 A deviating agreement to the disadvantage of the lessee is ineffective .

=U4= Kap6 -- Chapter 6 Special features when creating apartment ownership of leased residences

=U5= Sec577 -- Section 577 Right of preemption of the lessee

-- =S=> BGB 577. 1 If leased residential premises , apartment ownership of which has been established or is to be established after the lessee has been permitted to use it , is sold to a third party , then the lessee has a right of preemption with regard to it . This does not apply if the lessor sells the residential premises to a member of his family or a member of his household . To the extent that the following subsections do not lead to a different conclusion , the right of preemption is governed by the provisions on preemption .
=S=> BGB 577. 2 The notification of the seller or of the third party on the contents of the purchase agreement is to be supplied together with information to the lessee on his right of preemption .
=S=> BGB 577. 3 The right of preemption is exercised by a written declaration of the lessee to the seller .
=S=> BGB 577. 4 If the lessee dies , then the purchase option passes to the persons who succeed to the lease under section 563 ( 1 ) or ( 2 ) .
=S=> BGB 577. 5 A deviating agreement to the disadvantage of the lessee is ineffective .

=U5= Sec577a -- Section 577a Restriction on notice of termination in connection with conversion of the dwelling

-- =S=> BGB 577a. 1 If apartment ownership of leased residential premises has been established in the residential space after the lessee was permitted to use it and the apartment ownership has been disposed of , then an acquirer may only invoke a justified interest within the meaning of section 573 ( 2 ) nos . 2 or 3 after the end of three years after the disposal . BGB 577a. 2 The period under subsection ( 1 ) is up to ten years if adequate supply of leased dwellings to the population on reasonable conditions in a municipality or part of a municipality is particularly jeopardised and these areas are specified under sentence 2. The Land governments are authorised to specify these territories and the period of time under sentence 1 by statutory order for the duration of ten years at most in each case . BGB 577a. 3 A deviating agreement to the disadvantage of the lessee is ineffective .

=U3= UTit3 -- Subtitle 3 Leases of other things

=U4= Sec578 -- Section 578 Leases of plots of land and premises

-- =S=> BGB 578. 1 The provisions of sections 550 , 562 to 562d , 566 to 567b as well as 570 are applicable to leases of plots of land with the necessary modifications .
=S=> BGB 578. 2 The provisions cited in subsection 1 as well as section 552 ( 1 ) , section 554 ( 1 ) to ( 4 ) and section 569 ( 2 ) are applicable with the necessary modifications on leases for premises not constituting residential premises . If the premises are intended for the residence of human beings , section 569 ( 2 ) also applies with the necessary modifications .

=U4= Sec578a -- Section 578a Lease of registered ships

-- =S=> BGB 578a. 1 The provisions of sections 566 , 566a , 566e to 567d apply with the necessary modifications in the case of disposal or encumbrance of a ship registered in the ship register .
=S=> BGB 578a. 2 A disposition of the rent made by the lessor prior to the passing of ownership and relating to the period of time when the acquirer is entitled is effective in relation to the acquirer . The same applies to a legal transaction that is entered into between the lessee and the lessor on the rent claim , in particular , without limitation , regarding the payment of the rent ; a legal transaction entered into after the passing of ownership is , however , ineffective if the lessee , when entering into the transaction , has knowledge of the passing of ownership . Section 566d applies with the necessary modifications .

=U4= Sec579 -- Section 579 Due date of the rent

-- =S=> BGB 579. 1 The rent for a plot of land , a ship registered in the ship register and for movable things is payable at the end of the lease period . If the rent is assessed according to time periods , then it is to be paid at the end of the individual time periods . Rent for a plot of land , unless assessed by shorter time periods , is in each case to be paid after the end of a calendar quarter on the first working day of the next month .
=S=> BGB 579. 2 Section 566b ( 1 ) applies with the necessary modifications to leases of premises .

=U4= Sec580 -- Section 580 Notice of termination for cause in the case of the death of the lessee

-- =S=> BGB 580 If the lessee dies , then both his heir and the lessor are entitled , within a month of obtaining knowledge of the death of the lessee , to terminate the lease for cause with the statutory notice period .

=U4= Sec580a -- Section 580a Notice periods

-- =S=> BGB 580a. 1 In the case of a lease of plots of land , of premises that are not business premises or of ships registered in the ship register , notice of termination is allowed if the rent is assessed by days , on any day to the end of the following day ; if the rent is assessed by weeks , at the latest on the first working day of a week to the end of the following Saturday ; if the rent is assessed in months or longer periods of time , at the latest on the third working day of a calendar month to the end of the second month thereafter ; in the case of a lease of commercially used undeveloped plots of land or ships registered in the ship register , however , only to the end of a calendar quarter .
=S=> BGB 580a. 2 In the case of a lease of business premises , notice of termination is admissible at the latest on the third working day of a calendar quarter to the end of the next calendar quarter .
=S=> BGB 580a. 3 In the case of a lease of movable things , notice of termination is admissible if the rent is assessed by days , on any day to the end of the following day ; if the rent is assessed by longer periods of time , at the latest on the third day prior to the day at the end of which the lease is to terminate .
=S=> BGB 580a. 4 Subsection ( 1 ) no . 3 , subsections ( 2 ) and ( 3 ) no . 2 are also to be applied if a lease may be terminated for cause with the statutory notice period .

=U3= UTit4 -- Subtitle 4 Usufructuary lease

=U4= Sec581 -- Section 581 Typical contractual duties in a usufructuary lease

-- =S=> BGB 581. 1 A usufructuary lease imposes on the lessor the duty to allow the lessee , for the lease period , the use of the leased object and the enjoyment of its fruits to the extent that they are deemed to be income under the rules of proper management . The lessee is obliged to pay the lessor the agreed rent .
=S=> BGB 581. 2 The provisions on leases apply with the necessary modifications to usufructuary leases with the exception of farm leases , unless sections 582 to 584b lead to a different conclusion .

=U4= Sec582 -- Section 582 Maintenance of inventory

-- =S=> BGB 582. 1 If a plot of land together with its inventory is leased under a usufructuary lease , then the lessee must maintain the individual inventory items .
=S=> BGB 582. 2 The lessor is obliged to replace inventory items disposed of due to a circumstance for which the lessee is not responsible . However , the usufructuary lessee must make up for the routine disposition of animals that are part of the inventory to the extent that this complies with proper management .

=U4= Sec582a -- Section 582a Taking over inventory at its estimated value

-- =S=> BGB 582a. 1 If the usufructuary lessee of a plot of land takes over the inventory at its estimated value with the duty of returning it at its estimated value upon termination of the lease , then he bears the risk of accidental loss and accidental deterioration of such inventory . Within the limits of proper management , the lessee may dispose of the individual inventory items .
=S=> BGB 582a. 2 The usufructuary lessee must maintain the inventory in a condition and replace it to an extent that complies with the rules of proper management . The items purchased by him become the property of the lessor when they are incorporated into the inventory .
=S=> BGB 582a. 3 Upon the termination of the usufructuary lease , the lessee must return the existing inventory to the lessor . The lessor may refuse to take over those of the inventory items purchased by the lessee that are superfluous or too expensive for the plot of land under the rules of proper management ; upon rejection , the ownership of the rejected items passes to the lessee . If there is a difference between the total estimated value of the inventory taken over and that to be returned , then this difference is to be compensated for in money . The estimated values are to be based on the prices valid at the time of termination of the usufructuary lease .

=U4= Sec583 -- Section 583 Security right of usufructuary lessee over inventory

-- =S=> BGB 583. 1 The usufructuary lessee of a plot of land has a security right over the inventory items in his possession for claims on the lessor that relate to inventory included in the usufructuary lease .
=S=> BGB 583. 2 The usufructuary lessor may ward off the assertion of the security right of the lessee by provision of security . He may release every single inventory item from the security right by providing security in the amount of the value .

=U4= Sec583a -- Section 583a Restrictions on disposition of inventory

-- =S=> BGB 583a Terms of the contract that oblige the usufructuary lessee of a business not to dispose of inventory items or not to dispose of them without prior consent by the lessor or to dispose of inventory items to the lessor are only effective if the lessor agrees to acquire the inventory at its estimated value upon termination of the lease .

=U4= Sec584 -- Section 584 Notice period

-- =S=> BGB 584. 1 If , in the usufructuary lease of a plot of land or of a right , the lease period is not specified , then notice of termination is only allowed to the end of a lease year ; it must occur at the latest on the third working day of the half-year at the end of which the usufructuary lease is to end .
=S=> BGB 584. 2 This also applies if the usufructuary lease may be terminated for cause with the statutory notice period .

=U4= Sec584a -- Section 584a Exclusion of certain rights of termination under landlord and tenant law

-- =S=> BGB 584a. 1 The usufructuary lessee is not entitled to the right of notice of termination determined in section 540 ( 1 ) .
=S=> BGB 584a. 2 The usufructuary lessor is not entitled to terminate the usufructuary lease under section 580.

=U4= Sec584b -- Section 584b Late return

-- =S=> BGB 584b If the usufructuary lessee fails to return the leased property upon termination of the usufructuary lease , then the lessor may , for the duration of the retention , demand the agreed rent as compensation in the ratio of the emoluments which the lessee took or could have taken in this period to the emoluments of the whole lease year . Assertion of additional damage is not excluded .

=U3= UTit5 -- Subtitle 5 Farm lease

=U4= Sec585 -- Section 585 Concept of farm lease

-- =S=> BGB 585. 1 By means of a farm lease , a plot of land with the residential and utility buildings ( business ) that serve its cultivation , or a plot of land without such buildings , is leased largely for agriculture . Agriculture means the cultivation of the soil and the livestock breeding associated with the use of the soil in order to produce plant or animal products , and horticultural production .
=S=> BGB 585. 2 Section 581 ( 1 ) and sections 582 to 583a apply to farm leases , as do the special provisions below .
=S=> BGB 585. 3 The provisions on farm leases also apply to leases relating to forestry properties if the plots of land are leased for use in a predominantly agricultural business .

=U4= Sec585a -- Section 585a Form of a farm lease

-- =S=> BGB 585a If a farm lease is entered into for more than two years without written form , then it remains in effect for an indefinite period of time .

=U4= Sec585b -- Section 585b Description of the leased property

-- =S=> BGB 585b. 1 The lessor and the lessee should at the beginning of the usufructuary lease jointly prepare a description of the leased property in which its extent and the condition in which it is when surrendered are established . This applies with the necessary modifications to the termination of the usufructuary lease . The description should state the date of its preparation and must be signed by both parties .
=S=> BGB 585b. 2 If a party to the lease refuses to participate in the preparation of a description or if differences of opinion as to fact emerge during the preparation , then each party to the lease may demand that a description is prepared by an expert , unless more than nine months have passed since permitting use of the leased property or more than three months have passed since termination of lease ; the expert is appointed by the Agricultural Court [ Landwirtschaftsgericht ] upon application . Costs incurred in this connection are borne by the parties to the lease at the rate of one-half each .
=S=> BGB 585b. 3 If a description of this type has been prepared , then the presumption between the parties to the contract is that it is correct .

=U4= Sec586 -- Section 586 Typical contractual duties in a farm lease

-- =S=> BGB 586. 1 The usufructuary lessor must surrender the leased property to the lessee in a condition suitable for use in conformity with the contract and must maintain it in this condition for the lease period . However , the lessee must carry out the customary improvements of the leased property at his own expense , including without limitation improvements of the residential and utility buildings , the paths , ditches , drains and fences . He is obliged to manage the leased property properly .
=S=> BGB 586. 2 The provisions of sections 536 ( 1 ) to ( 3 ) and of 536a to 536d apply to the liability of the usufructuary lessor for material and legal defects in the leased property as well as for the rights and duties of the lessee in relation to such defects .

=U4= Sec586a -- Section 586a Encumbrances on the leased property

-- =S=> BGB 586a The usufructuary lessor must bear the encumbrances imposed on the leased property .

=U4= Sec587 -- Section 587 Due date of rent ; payment of rent where the usufructuary lessee is personally prevented

-- =S=> BGB 587. 1 The rent is to be paid at the end of the lease period . If the lease period is assessed by time periods , then it is to be paid on the first working day after the end of the individual time periods .
=S=> BGB 587. 2 The usufructuary lessee is not released from payment of the rent due to the fact that he is unable to exercise the right of use to which he is entitled for a reason relating to him personally . Section 537 ( 1 ) sentence 2 and ( 2 ) apply with the necessary modifications .

=U4= Sec588 -- Section 588 Measures of maintenance or improvement

-- =S=> BGB 588. 1 The usufructuary lessee must acquiesce in impacts on the leased property necessary to maintain it .
=S=> BGB 588. 2 Measures to improve the leased property must be tolerated by the usufructuary lessee , unless the measure would represent a hardship for him that is not justified even when the justified interests of the lessor are taken into account . The usufructuary lessor must compensate the lessee for expenses incurred and earnings lost as a result of the measure to an extent appropriate to the circumstances . On demand , the usufructuary lessor must make advance payment .
=S=> BGB 588. 3 To the extent that the usufructuary lessee , due to measures under subsection ( 2 ) sentence 1 , earns higher income or could earn it with proper management , the lessor may demand that the lessee gives prior consent to a reasonable increase in rent unless the usufructuary lessee cannot reasonably be expected to accept an increase in rent in view of the circumstances of the business .
=S=> BGB 588. 4 Upon application , the Agricultural Court [ Landwirtschaftsgericht ] decides disputes under subsections ( 1 ) and ( 2 ) . If the usufructuary lessee fails to give prior consent in the cases in subsection ( 3 ) , then the Agricultural Court [ Landwirtschaftsgericht ] may give substitute consent on application by the lessor .

=U4= Sec589 -- Section 589 Surrender of use to third parties

-- =S=> BGB 589. 1 Without the permission of the usufructuary lessor , the lessee is not entitled to permit use of the leased property to a third party , including without limitation subletting the property , permit use of the leased property , in whole or in part , to an agricultural association for the purpose of joint use .
=S=> BGB 589. 2 If the usufructuary lessee permits use of the leased property to a third party , then he is responsible for any fault of the third party in its use , even if the lessor has given permission for this use by the third party .

=U4= Sec590 -- Section 590 Change of agricultural purpose or of previous use

-- =S=> BGB 590. 3 If , in connection with a change of use of the leased property , the usufructuary lessee has substantially reduced the inventory taken over under section 582a at its estimated value , then the lessor may demand compensation in money , applying section 582a ( 3 ) with the necessary modifications , even during the lease period , unless the proceeds of the inventory items disposed of have been used for an improvement of the leased property under section 591 that is in a reasonable ratio to the amount of the proceeds .

=U4= Sec590a -- Section 590a Use in breach of contract

-- =S=> BGB 590a If the usufructuary lessee makes use of the leased property in breach of contract , and if he continues the use in breach of contract notwithstanding a warning by the lessor , then the lessor may seek a prohibitory injunction .

=U4= Sec590b -- Section 590b Necessary outlays

-- =S=> BGB 590b The usufructuary lessor is obliged to compensate the lessee for necessary outlays on the leased property .

=U4= Sec591 -- Section 591 Outlays that increase value

-- =S=> BGB 591. 1 The usufructuary lessor must reimburse the usufructuary lessee on the termination of the lease for outlays that are not necessary outlays for which he has given his approval , to the extent that the outlays increase the value of the leased property beyond the lease period ( added value ) .
=S=> BGB 591. 2 If the usufructuary lessor refuses to approve the outlays , then substitute approval may be given by the Agricultural Court [ Landwirtschaftsgericht ] upon application by the usufructuary lessee to the extent that the outlays appear to be appropriate for the maintenance or permanent improvement of the profitability of the business and the usufructuary lessor can reasonably be expected to accept them when his justified interests are taken into account . This does not apply if the lease has been terminated or the lease ends in less than three years . The Agricultural Court [ Landwirtschaftsgericht ] may give substitute approval subject to stipulations and conditions .
=S=> BGB 591. 3 The Agricultural Court [ Landwirtschaftsgericht ] may upon application decide on provisions relating to the added value and may assess the latter . It may determine that the usufructuary lessor need only reimburse the added value in instalments and may impose conditions for granting such instalments . If the usufructuary lessor cannot reasonably be expected to accept reimbursement of the added value upon the termination of the lease , even in instalments , then the lessee may only demand that the lease is continued on the previous conditions until the added value of the leased property has been paid for . If no agreement can be reached , then the Agricultural Court [ Landwirtschaftsgericht ] decides upon application as to the continuation of the lease .

=U4= Sec591a -- Section 591a Removal of installations

-- =S=> BGB 591a The usufructuary lessee is entitled to remove an installation with which he has furnished the thing . The usufructuary lessor may ward off exercise of the right of removal by paying appropriate compensation , unless the lessee has a justified interest in removal . Any agreement excluding the right of removal of the usufructuary lessee is only effective if it provides for appropriate compensation .

=U4= Sec591b -- Section 591b Limitation of compensation claims

-- =S=> BGB 591b. 1 The compensation claims of the usufructuary lessor for change to or deterioration of the leased thing as well as the claims of the lessee for reimbursement of outlays or for permission to remove an installation are subject to a six-month limitation period .
=S=> BGB 591b. 2 The limitation period for the compensation claims of the usufructuary lessor commences on the date when he receives the returned thing . The limitation period for the usufructuary lessee commences upon termination of the lease .
=S=> BGB 591b. 3 Upon limitation of the claim of the usufructuary lessor to return of the thing , the compensation claims of the lessor are also statute-barred .

=U4= Sec592 -- Section 592 Security right of the usufructuary lessor

-- =S=> BGB 592 For his claims under the usufructuary lease , the lessor has a security right over the things contributed by the lessee and over the fruits of the leased property . The security right may not be asserted with regard to future compensation claims . With the exception of the things cited in section 811 ( 1 ) no . 4 of the Code of Civil Procedure [ Zivilprozessordnung ] , the security right does not extend to things that are not subject to attachment . The provisions of sections 562a to 562c apply with the necessary modifications .

=U4= Sec593 -- Section 593 Amendment of farm leases

-- =S=> BGB 593. 1 If , after the usufructuary lease is entered into , the circumstances that were decisive for the determination of the performance under the lease change with lasting effect in such a way that the mutual duties are in a gross disparity to each other , then each party to the contract may demand an amendment of the lease , with the exception of the duration of the lease . If , as a result of the cultivation of the leased property by the lessee , its income improves or deteriorates , then , to the extent not otherwise agreed , an amendment of the lease may not be demanded .
=S=> BGB 593. 2 An amendment may be demanded at the earliest two years after the commencement of the lease or after the most recent amendment of the performance under the lease has become effective . This does not apply if devastating natural events against which insurance coverage is not customary have fundamentally and permanently changed the ratio of the acts of performance under the lease .
=S=> BGB 593. 3 Amendment may not be demanded for a period prior to the lease year in which the demand for amendment is declared .
=S=> BGB 593. 4 If one party to the lease refuses to consent to an amendment of the lease , then the other party may apply to the Agricultural Court [ Landwirtschaftsgericht ] for a decision .
=S=> BGB 593. 5 The right to demand an amendment of the lease under subsections ( 1 ) to ( 4 ) may not be waived . An agreement that one party to the lease is to enjoy special advantages or suffer special disadvantages if he exercises or fails to exercise the rights under subsections ( 1 ) to ( 4 ) is ineffective .

=U4= Sec593a -- Section 593a Transfer of a business

-- =S=> BGB 593a If , on the transfer of a business by way of a lifetime transfer of property , a plot of land leased for the business that serves agricultural purposes is included , then the transferee succeeds to the usufructuary lease in place of the lessee . The usufructuary lessor must , however , be promptly notified of the transfer of business . If proper management of the leased property by the transferee is not guaranteed , then the usufructuary lessor is entitled to terminate the lease for cause with the statutory notice period .

=U4= Sec593b -- Section 593b Disposal or encumbrance of the leased property

-- =S=> BGB 593b If the leased property is disposed of or encumbered with a third-party right , then sections 566 to 567b apply with the necessary modifications .

=U4= Sec594 -- Section 594 Termination and extension of the lease

-- =S=> BGB 594 The usufructuary lease ends at the end of the period for which the lease has been entered into . In the case of usufructuary leases entered into for at least three years it is extended for an indefinite period of time if , upon the inquiry of one of the parties to the lease as to whether the other party is willing to continue the lease , the latter does not refuse continuation within a period of three months . The enquiry and the refusal must be in writing . The inquiry is without effect if there is no explicit reference in it to the consequences of disregarding it and if it is not made within the third-but-last year of the lease .

=U4= Sec594a -- Section 594a Notice periods

-- =S=> BGB 594a. 1 If the lease period is not fixed , then each party to the lease may terminate the lease at the latest on the third working day of a lease year to the end of the next lease year . In case of doubt , the calendar year is deemed to be the lease year . Agreement on a shorter period must be in writing .
=S=> BGB 594a. 2 In the cases where the lease may be terminated for cause with the statutory notice period , termination is only allowed to the end of a lease year ; it must occur at the latest on the third working day of the half-year at the end of which the lease is to terminate .

=U4= Sec594b -- Section 594b Lease for more than thirty years

-- =S=> BGB 594b If a usufructuary lease is entered into for a period of more than thirty years , then after thirty years each party to the lease may terminate the lease at the latest on the third working day of a lease year to the end of the next subsequent lease year . Termination is not allowed if the lease has been entered into for the lifetime of the lessor or the lessee .

=U4= Sec594c -- Section 594c Termination in the case of occupational disability of the usufructuary lessee

-- =S=> BGB 594c If the usufructuary lessee has become occupationally disabled within the meaning of the provisions of the statutory pension scheme , then he may terminate the lease for cause with the statutory notice period if the lessor objects to the transfer of the leased property for use to a third party who guarantees proper management . A deviating agreement is ineffective .

=U4= Sec594d -- Section 594d Death of the usufructuary lessee

-- =S=> BGB 594d. 1 If the usufructuary lessee dies , then both his heirs and the lessor are entitled within a month after obtaining knowledge of the death of the lessee to terminate the lease with a notice period of six months to the end of a calendar quarter .
=S=> BGB 594d. 2 The heirs may contest the notice of termination of the usufructuary lessor and demand continuation of the lease if proper management of the leased property appears to be guaranteed by them or by a co-heir commissioned by them or by a third party . The usufructuary lessor may refuse the continuation of the lease if the heirs have not declared their objection at the latest three months prior to expiry of the lease and informed of the circumstances by reason of which further proper management of the leased property appears ensured . The enquiry and the refusal must occur in writing . If no agreement can be reached then the Agricultural Court [ Landwirtschaftsgericht ] decides on application .
=S=> BGB 594d. 3 In response to notice of termination by the usufructuary lessor under subsection ( 1 ) , a continuation demand by the heir under section 595 is excluded .

=U4= Sec594e -- Section 594e Termination for cause without notice for a compelling reason

-- =S=> BGB 594e. 1 Immediate termination of the lease for cause is allowed , applying sections 543 , and 569 ( 1 ) and ( 2 ) with the necessary modifications .
=S=> BGB 594e. 2 Notwithstanding section 543 ( 2 ) n . 3 letters a and b , just cause exists in particular , without limitation , if the usufructuary lessee is in default for more than three months of payment of the rent or of a portion of the rent that is not insignificant . If the lease is assessed by time periods of less than one year , then termination is only admissible if the usufructuary lessee is in default , for two successive dates , of payment of the rent or of a substantial portion of the rent .

=U4= Sec594f -- Section 594f Written form of termination

-- =S=> BGB 594f Notice of termination must be made in written form .

=U4= Sec595 -- Section 595 Continuation of the lease

-- =S=> BGB 595. 1 The usufructuary lessee may demand continuation of the lease from the lessor if in the case of a commercial usufructuary lease , the business constitutes the economic basis of his existence , in the case of a usufructuary lease of a plot of land , the lessee is dependent on this plot of land to maintain his business , which is the economic basis of his existence , and termination of the lease in conformity with the contract would be a hardship for the lessee or his family which would not be justifiable even if the justified interests of the lessor were taken into account . Subject to these requirements , continuation may be demanded repeatedly .
=S=> BGB 595. 2 In the case in subsection ( 1 ) , the usufructuary lessee may demand that the lease is continued as long as is appropriate when all circumstances are taken into consideration . If the usufructuary lessor cannot reasonably be expected to continue the lease under the previously applicable contract terms , then the lessee may demand that it be continued with an appropriate amendment of the terms .
=S=> BGB 595. 3 The usufructuary lessee may not demand continuation of the lease from the usufructuary lessor if he has terminated the lease , the usufructuary lessor is entitled to terminate the lease for cause without notice , or in the case of section 593a to terminate the lease for cause with the statutory notice period , the lease period in the case of a usufructuary lease of a business , the leasing of additional plots of land as a result of which a business is created , or in the case of the lease of marshland or wasteland that has been cultivated by the lessee has been agreed for at least eighteen years , or in the case of the lease of other plots of land for at least twelve years , in the case of property leased only temporarily under a usufructuary lease , the lessor wishes to repossess it for his own use or to use it to perform statutory or other public tasks .
=S=> BGB 595. 4 The declaration of the usufructuary lessee demanding the continuation of the lease must be in writing . Upon demand by the usufructuary lessor , the lessee should without undue delay provide information on his reasons for demanding continuation .
=S=> BGB 595. 5 The usufructuary lessor may refuse continuation of the lease if the usufructuary lessee did not demand continuation from the lessor at least one year prior to termination of the lease or rejected continuation upon inquiry by the lessor under section 594. If a twelve-month notice period or less has been agreed , then it suffices if the demand is declared within a month of receipt of the notice of termination .
=S=> BGB 595. 6 If agreement is reached , then the Agricultural Court [ Landwirtschaftsgericht ] decides upon application on a continuation and on the lease period , and also on the conditions under which the lease will be continued . The court may order continuation of the lease , but only up to a date that , starting from the commencement of the current lease , does not exceed the periods stated in subsection ( 3 ) no . 3. Continuation may be limited to a part of the leased property .
=S=> BGB 595. 7 The usufructuary lessee must file the application for a court decision at the Agricultural Court [ Landwirtschaftsgericht ] at the latest nine months prior to termination of the lease and , in the case of a twelve-month notice period or less , two months after receipt of notice of termination . The court may admit the application at a later date if it appears called for to avoid undue hardship and the lease has not yet expired .
=S=> BGB 595. 8 The right to demand extension of the lease under subsections ( 1 ) to ( 7 ) may only be waived if the waiver is declared in settlement of a lease dispute heard in a court of law or by a professional lease conciliation board . An agreement that one party is to have particular advantages or particular disadvantages if the party exercises or does not exercise the rights under subsections ( 1 ) to ( 7 ) is ineffective .

=U4= Sec595a -- Section 595a Early notice of termination of farm leases

-- =S=> BGB 595a. 1 To the extent that the parties to the contract are entitled to terminate a farm lease for cause with the statutory notice period , they are entitled to this even after the extension of the farm lease or the modification of the farm lease .
=S=> BGB 595a. 2 Upon application by one of the parties to the lease , the Agricultural Court [ Landwirtschaftsgericht ] may make orders on the winding up of a farm lease terminated early or terminated in part . If the extension of a farm lease is limited to a portion of the leased property , then the Agricultural Court [ Landwirtschaftsgericht ] may determine the rent for this portion .
=S=> BGB 595a. 3 The contents of Agricultural Court [ Landwirtschaftsgericht ] orders are deemed to be part of the lease agreement as between the parties to the lease . The Agricultural Court [ Landwirtschaftsgericht ] decides upon application on disputes relating to these contents of the contract .

=U4= Sec596 -- Section 596 Return of the leased property

-- =S=> BGB 596. 1 The usufructuary lessee is obliged to return the leased property upon termination of the lease in a condition conforming with proper management continued up to its return . BGB 596. 2 The usufructuary lessee has no right of retention of the plot of land for his claims on the lessor . BGB 596. 3 If the usufructuary lessee has transferred use of the leased property to a third party , the lessor may also demand return of the leased property from that third party upon termination of the lease .

=U4= Sec596a -- Section 596a Duty to compensate for early termination of lease

-- =S=> BGB 596a. 1 If the lease terminates in the course of a lease year , the usufructuary lessor must compensate the lessee for the value of any fruits not yet severed but to be severed prior to the end of the lease year under the rules of proper management . When this is done , the harvesting risks must be given appropriate consideration .
=S=> BGB 596a. 2 If the value referred to in subsection ( 1 ) cannot be determined for seasonal reasons , then the usufructuary lessor must compensate the lessee for outlays on these fruits to the extent that they correspond to proper management .
=S=> BGB 596a. 3 Subsection ( 1 ) also applies to timber intended for felling but not yet felled . If the usufructuary lessee has felled more timber than allowed in the case of proper use , then he must compensate the lessor for the quantity of timber that exceeds normal use . Assertion of additional damage is not excluded .

=U4= Sec596b -- Section 596b Duty to leave behind

-- =S=> BGB 596b. 1 The usufructuary lessee of a business must prior to termination of the lease leave behind as much of the available agricultural produce as is needed for continuation of the farm until the next harvest , even if he did not take over such produce at commencement of the lease .
=S=> BGB 596b. 2 To the extent that the usufructuary lessee is obliged under subsection ( 1 ) to leave produce behind in a greater quantity or of a better quality than he took over at commencement of the lease , then he may demand compensation of their value from the lessor .

=U4= Sec597 -- Section 597 Late return

-- =S=> BGB 597 If the usufructuary lessee does not return the leased property upon termination of the lease , then the usufructuary lessor may for the duration of such withholding demand the agreed rent as compensation . Assertion of additional damage is not excluded .

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