Required Disclosures for Commercial Landlords in Baden-Württemberg

The primary legal framework for these obligations is the German Civil Code (BGB), which has governed contractual relations in Germany since its commencement on 1 January 1900. Unlike the consumer-protective residential tenancy framework, commercial tenancy is primarily governed by the principle of freedom of contract under the BGB. Because it treats tenants as experienced businesspeople, there are fewer rigid, pre-contractual disclosure requirements. However, landlords who conceal material property defects risk damage claims under § 241 para. 2 BGB or even immediate termination by the tenant for fraudulent misrepresentation under § 123 BGB.

Legal DisclaimerThis guide provides general legal information. Lease laws can change. Always consult a licensed notary or lawyer in this region.

Energy Performance Certificate for Non-Residential Buildings

Commercial properties (non-residential buildings) are subject to the same Building Energy Act (GEG) requirements as residential ones.

• A valid energy certificate for non-residential buildings must be prepared (§ 80 GEG).
• Energy data (certificate type, final energy demand/consumption for heating and electricity, main energy source, building year) must be included in commercial property listings (§ 87 GEG).
• The certificate must be shown to prospective tenants at viewing and provided in copy at lease signing.
• Fines for non-compliance can reach up to €50,000 for advertising violations or €10,000 for failing to present the certificate (§ 108 GEG).
• Baden-Württemberg note: For major renovations, commercial property owners must also consider the state's Renewable Heat Act (EWärmeG BW) and federal heating regulations — information that should be shared with prospective tenants if upcoming works may disrupt their business operations.

Building Permits and Intended Use

One of the most common sources of commercial tenancy disputes concerns whether the premises have the correct building permits for the tenant's intended use.

1. Permitted use: The landlord is obligated to provide premises that may be lawfully used for the contractually agreed purpose (§ 535 Abs. 1 BGB). If, for example, fire safety codes prevent restaurant use, the landlord is liable.
2. Hidden defects: The landlord must proactively disclose — even if not asked — material defects or circumstances that would substantially impair the tenant's contractual use (e.g., recurring basement flooding, asbestos contamination in older industrial buildings).

Environmental Contamination and Public Encumbrances

For land rentals (e.g., petrol stations, industrial sites) or older factory buildings, soil contamination (Altlasten) is a high-liability issue.

• Landlords must (and in many cases, analogous to sales law, are obligated to) disclose known entries in the contamination register (Altlastenkataster).
• Existing public building encumbrances (Baulasten) — such as right-of-way easements or setback requirements — that restrict the use of the property must be disclosed during lease negotiations.

Service Charge and Operating Cost Transparency

To avoid year-end disputes, the lease contract must clearly and transparently define which operating costs are passed through to the tenant.

• A simple reference to the Residential Operating Costs Ordinance (BetrKV) is uncommon in commercial leases, as commercial landlords typically allocate administrative costs, center management fees, and "shell and core" maintenance costs far beyond what residential law permits.
• AGB risk: If a contract's cost allocation provisions are intransparent, they are interpreted against the drafter (usually the landlord) under standard terms law (§§ 305c, 307 BGB). The landlord should proactively inform the tenant about the specific allocation methodology (by area, by consumption, or flat rate).

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