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Leasehold in Düsseldorf

Leasehold

Within the framework of leasehold the question about which kind of contract the parties have signed always appears. Here is it of importance if it is agreed that the tenant/lessee only rent the object (tenancy contract) or if he also receives access right (leasehold contract). Leasehold differs from rent mainly on the point that in leasehold it is possible to agree on the right of use to a lot of things; for instance, stuff, hunting access right and business access right.

In addition to the lessee’s right to use the object, he is also entitled the dividend from the object. In agricultural and gardening lease there is possible for the lessee to get the crops. There is a clear difference to the tenancy; a tenant can only rent the object.

The distinction often leads to the question if a company hires or leases an object. For the rent of an object it is only allowed to use it for the agreed purpose. Leasehold extends to include furniture and fixtures and the lessee can use them to bring incomes. If no use of equipment is agreed in the contract, it is a rental agreement. When there is special equipment in the object and this equipment is suitable for the business, there is normally a lease contract.

When it is determined that the contract is considered to be a lease contract, questions like terminations, rent reductions and eliminations of problems may occur. There are special rules when it comes to termination in leasehold situations. Thus, if the return of the object is delayed, it is like in rental situations that the lessor has right to compensation.

NOTE: The period of limitation is short with regard to the latter to claim on getting missing inventory back or to receive compensation.

Special regulations apply on the lease of agricultural and forestry land, pharmacies and allotments. Legal problems are common in the field of using an object as hotel, restaurant, gas station, golf course, stable or a parking place.

Leasehold is a part of tenancy law in which we attorneys are specialized. We can answer your questions and help you to decide the most optional procedure for your situation.

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