Commercial Eviction Processes in Lower Saxony: Deadlines & Clearance

The end of a commercial tenancy in Lower Saxony is legally noticeably different from residential properties, governed primarily by the German Civil Code (BGB), which came into effect on 1 January 1900. Because commercial tenants are not threatened in their private livelihoods (housing), there is no statutory tenant protection in the course of ordinary terminations. Nevertheless, landlords face lengthy eviction processes in the event of formal errors.

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

1. The Regular Ordinary Termination

An ordinary termination only comes into play with open-ended contracts. However, the vast majority of commercial leases in downtown areas (such as Hanover or Göttingen) are concluded as real fixed-term contracts (e.g., fixed for 5 or 10 years). Generally, these cannot be terminated ordinarily before their agreed term expires.

However, a crucial exception exists: if a fixed-term commercial lease agreement, particularly one with a term longer than one year, does not comply with the written form requirement as stipulated in BGB § 550, it is legally deemed to be concluded for an indefinite period. In such a case, either party may terminate the contract with the statutory ordinary notice period, regardless of the originally agreed fixed term.

No Reasons Required

In the case of an open-ended commercial lease, the landlord – unlike with residential space – requires no statutory reason for termination such as personal need. They can dissolve the contract without cause. , the commercial tenant is not entitled to the strict right of objection according to the social clause (§ 574 BGB).

The Statutory Notice Period (§ 580a Para. 2 BGB)

Unless otherwise contractually agreed, the statutory notice period for ordinary termination of an open-ended commercial lease is six months to the end of a calendar quarter.

The termination notice must be received by the tenant no later than the third working day of a calendar quarter for it to take effect at the end of the next calendar quarter. If the notice is received after the third working day of a calendar quarter, the termination will only be effective at the end of the subsequent calendar quarter, effectively extending the notice period to almost nine months.

• Example 1: Receipt of termination by the tenant on January 3rd (the third working day of Q1) -> End of contract is June 30th (end of Q2).
• Example 2: Receipt of termination by the tenant on January 4th (after the third working day of Q1) -> End of contract is September 30th (end of Q3).

2. Termination Without Notice (Extraordinary)

An immediate termination of the contract is permissible if there is an "important reason" according to § 543 BGB, which makes the continuation of the contract unreasonable for the landlord. This primarily affects default of payment:

• The tenant does not pay for two consecutive rents.
• The tenant is in arrears over more than two months with a total amount that reaches two gross monthly rents.

Other reasons and restrictions:

• Insolvency Restrictions: After an insolvency application has been filed, the landlord is generally restricted by Section 112 InsO and cannot terminate the lease due to rent arrears that arose before the application was filed, nor due to a deterioration in the tenant's financial circumstances.
• Landlord's Remaining Rights: The landlord can still terminate for rent arrears that arise after the insolvency application is filed or for other non-financial breaches of contract.
• Insolvency Administrator's Rights: Under Section 109 InsO, the insolvency administrator has a special statutory right to terminate the lease with a notice period of three months to the end of a calendar month, regardless of fixed terms.
• Unasked subletting of the majority of the commercial space despite a warning.
• Misappropriation or severe endangerment of the rented property (building substance) in ignorance of warnings.

Attention - No Statutory Healing: Unlike residential tenancies, commercial tenants have no statutory right to "heal" a termination without notice for payment arrears (§ 569 Abs. 3 BGB does not apply). Once the termination is received, it remains legally valid even if the arrears are settled immediately, unless the landlord explicitly waives the termination.

3. Option Rights & Extension Clauses

Especially in commercial real estate, the termination or extension process often depends on extension options. Usually, the entrepreneur rents for "5 years fixed with an option for a further 3x5 years."

• If the landlord actually wants to get rid of the tenant, but the option right lies solely with the tenant, the landlord loses out. If the tenant exercises the option in good time (usually 6 months prior to the deadline), the tenancy is automatically renewed.

4. The Judicial Commercial Eviction Process

If the commercial tenant does not move out as agreed, the commercial landlord in Lower Saxony only has the option of going to the locally competent Regional Court (Landgericht) for an eviction lawsuit (for amounts in dispute > €5,000 annual cold rent, which is almost always the case in commercial real estate, instead of the local court). Representation by a lawyer is mandatory before the Regional Court.

1. Eviction Order / Judgment: Because witness questioning e.g. on defects is often pending in commercial space, litigations in commercial law sometimes drag on for years until they are finally clarified in all instances. This threatens an immense loss of rent if the tenant (as is often the case with insolvency risks) does not pay compensation for use.
2. The Eviction: The forced eviction of an open-plan office or a restaurant including cold stores and bulky inventory sometimes causes exorbitant eviction cost advances (often 5-digit or 6-digit) to the bailiff. Often commercial landlords in Lower Saxony then also use the limited eviction ("Berlin model"), in which they exercise their landlord's lien on the commercial tenant's brought-in inventory (office furniture, production machines) to initially physically lock the tenant out.

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