Back Rent Payment Agreement Template for Germany

A legally binding agreement governed by German law that establishes a structured payment plan for outstanding rental payments. The document complies with the German Civil Code (Bürgerliches Gesetzbuch - BGB), particularly sections 535-562 on rental law, and outlines specific terms for the repayment of rent arrears. It includes detailed payment schedules, consequences of default, and maintains the validity of the original lease agreement while providing a framework for resolving the outstanding debt in a manner that protects both landlord and tenant interests under German jurisdiction.

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What is a Back Rent Payment Agreement?

The Back Rent Payment Agreement is a crucial document used in German property management when tenants have accumulated rent arrears but demonstrate willingness and capability to settle their debt through a structured payment plan. This document, governed by German law and particularly the BGB (German Civil Code), serves as a formal arrangement between landlords and tenants to resolve rent payment defaults while maintaining the tenancy relationship. It's typically employed to prevent eviction proceedings and provide a mutually beneficial solution for debt recovery. The agreement includes essential elements such as debt acknowledgment, payment scheduling, default provisions, and potential securities, all while ensuring compliance with German tenant protection laws and civil code requirements. It's particularly relevant in both residential and commercial contexts where maintaining the tenant relationship while securing outstanding payments is desired.

What sections should be included in a Back Rent Payment Agreement?

1. Parties: Identification of the landlord and tenant, including full legal names, addresses, and any registration numbers for legal entities

2. Background: Context of the rental relationship, reference to the original lease agreement, and circumstances leading to the rent arrears

3. Definitions: Key terms used throughout the agreement, including 'Back Rent', 'Payment Plan', 'Due Date', and other relevant terms

4. Acknowledgment of Debt: Formal acknowledgment of the exact amount owed, breakdown of the arrears, and confirmation of the debt calculation

5. Payment Terms: Detailed payment plan including installment amounts, payment dates, payment methods, and account details

6. Default Provisions: Consequences of missing payments, including acceleration clauses and default interest as per BGB §§286-288

7. Effect on Existing Lease: Confirmation that the original lease remains in force and this agreement is supplementary

8. Representations and Warranties: Statements by both parties confirming their authority and capacity to enter into the agreement

9. Governing Law: Confirmation that the agreement is governed by German law and reference to relevant BGB provisions

10. Signatures: Execution blocks for all parties, including date and place of signing

What sections are optional to include in a Back Rent Payment Agreement?

1. Security Provisions: Additional security measures such as deposits or guarantees, used when there's concern about future payment compliance

2. Third-Party Guarantor: Details of any guarantor providing additional security for the payment plan, included when a guarantor is part of the arrangement

3. Hardship Provisions: Provisions for adjusting the payment plan in case of demonstrated financial hardship, useful for longer-term payment plans

4. Early Payment Provisions: Terms for early repayment of the debt, including any applicable discounts, included when early payment is encouraged

5. Mediation Clause: Procedure for resolving disputes through mediation before legal action, recommended for higher-value agreements

6. Reporting Obligations: Requirements for the tenant to provide periodic financial information, used in cases of significant debt or extended payment periods

What schedules should be included in a Back Rent Payment Agreement?

1. Schedule A - Rent Arrears Calculation: Detailed breakdown of the outstanding rent, including dates, amounts, and any applicable interest

2. Schedule B - Payment Schedule: Detailed calendar of payment dates and amounts, including running balance

3. Schedule C - Original Lease Reference: Extract or copy of relevant sections from the original lease agreement

4. Appendix 1 - Payment Methods: Details of accepted payment methods and processing information

5. Appendix 2 - Notice Forms: Template forms for payment confirmations and default notices

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

Genie AI

Sector

Banking

Cost

Free to use

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