News & Insights // Written Form Requirements in Germany

‘The only things that are certain in life are taxes and death’. Obviously, Benjamin Franklin never worked on a Real Estate transaction in Germany, if he had, he may have added Written Form Requirements issues to that list!

Will Brooks, our European Business Development Manager highlighted that Written Form Requirements comes up in every conversation with German Real Estate lawyers. He went on to say that the scenario is almost identical from one lawyer to another; “our client is buying a target and a percentage of the leases have some form of defect, can you help?”.

The short answer? Yes, CLS can help.

There are several different scenarios where one of our policies can cover the losses that occur should the outcome of the agreed strategy to deal with the risk fail.

These include but not limited to:

1. Will the tenant want to vacate the premises even if they could legally? If the tenant is an anchor tenant, a solvent company, the premises are in a desirable location etc. Are they really going to vacate the premises early?


2. Can we negotiate with the tenant? Is it possible to arrange a new lease and solve the problem of the defect?

When it comes to CLS, our extensive exposure to potential disputes has meant we’ve created a range of property solutions to help you make informed decisions on your transactions. We also offer cover for the following typical areas of risk:
1. General Form Requirements according to Section: 550, 578 BGB
2. Signatures on each page
3. Contract and annexes physically bound together
4. No interval between signatures
5. Parties and Valid Representation
In addition to the above scenarios and potential risks, we can also provide a bespoke insurance schedule that will give the fund a cap on liabilities from a written form requirements risks.

For more information on how our products and services can help you make informed commercial decisions, contact Will Brooks at