The definitive end of the written form requirement for long-term commercial leases

In our article dated 20.01.2025 we already reported that the Fourth Bureaucracy Relief Act has replaced the written form requirement for long-term commercial leases with the text form requirement since 01.01.2025.

For existing contracts concluded before 01.01.2025, a transitional period applied, which has since expired. The text form requirement now also applies to these long-term commercial leases.

by Sinje Grefe

What was the legal situation before 01.01.2025?

Prior to the entry into force of the Fourth Bureaucracy Relief Act, long-term commercial leases – i.e. those concluded for a period exceeding one year – were subject to the written form requirement. If this requirement was not met, the tenancy was deemed to have been concluded for an indefinite period and could therefore be terminated with ordinary notice.

Fourth Bureaucracy Relief Act

With the entry into force of the Fourth Bureaucracy Relief Act, long-term commercial leases are now subject to the text form requirement pursuant to § 578 para. 1 sentence 2 BGB. If this requirement is not met, § 550 BGB continues to apply, meaning that such tenancies shall again be deemed to have been concluded for an indefinite period and may be terminated with ordinary notice.

Transitional Period

For leases already concluded before 01.01.2025, a transitional period was provided until 01.01.2026 inclusive. During this period, the old legal position – i.e. the written form requirement – continued to apply to these existing leases. However, if an existing lease was amended before 02.01.2026, the text form requirement applied to such amendments.

Current Legal Position

The text form requirement now applies to all long-term commercial leases, regardless of whether they were concluded before 01.01.2025. Any written form deficiencies are therefore no longer relevant. Whether a long-term commercial lease is deemed to have been concluded for an indefinite period due to formal deficiencies now depends solely on whether the text form requirement has been complied with, unless the parties have contractually agreed otherwise.

Please do not hesitate to contact us if you require advice on the drafting of your lease agreement.

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