Disposal phase

In the disposal phase, the termination of the real estate leasing agreement requires agreeing to and providing for the necessary “liquidation arrangements:” 

variations and right to choose

  • purchase rights
  • purchase obligation (= no right to choose)
  • extension leasing
    • original agreement (clause)
      • option of an extension leasing
    • subsequent agreement (subsequent agreement or direct extension agreement)
      • agreement to an extension leasing
  • return
    • sale to third party
    • sale to a third party with lessee’s profit sharing right
  • (optional) negotiations for another type of real estate succession

purchase rights (legal)

  • =   branch practice and standard case
    • it is standard practice that the lessor grants the lessee purchase rights to acquire the leasing property
  • sale and lease back
    • in the case that the lessor purchases the leasing property from the lessor (sale and lease back), the acquisition option at the end of the ordinary leasing duration constitutes a “repurchase right”
    • cf. sale and lease transactions
  • purchase price
    • residual value at the end of the leasing duration
  • time of execution
    • at the end of the ordinary leasing duration

purchase obligation (requirement)

  • =  exceptional case
    • lessee’s purchase obligation
    • similar to right to compensation for non-exercising of purchase right

option for extension leasing

  • =  right to continued leasing after the end of the ordinary leasing duration
  • standard or a matter for negotiation depending on the lessor
  • exercising the option
    • expediency
      • depending on the circumstances, an extension leasing can be legally, commercially, financially or profitably beneficial
    • further leasing investment
      • total investment costs = residual book value of the leasing property plus investments necessary after the “first” leasing duration (repairs, updating to the latest use and construction standard, conversion, expansion, etc.)
    • future leasing payments and new amortisation amounts
      • adjustment of the leasing payment and the amortisation amount to the new total investment costs (residual book value + required investment) and possibly current refinancing conditions
      • depending on the situation, an increase or lowering of the leasing payment and or amortisation rates is conceivable
    • duration
      • continued validity of the leasing agreement generally for the same duration again
    • negotiation need
      • the establishing of new key leasing information often requires negotiations between the partners to the agreement
      • usually, the result of the negotiation process is a new leasing agreement, independent of the original leasing agreement and an individual contractual work
  • not exercising the option
    • not exercising the option for an extension of the leasing means the return of the leasing property and sale (sale to third party or a lessee, exercising a possible purchase right or an agreement dependent on it)


  • = standard case
  • lessee
    • clears out the property
    • prepares it for return inspection
  • lessor
    • property transfer subsequent to acceptance
    • lessor’s disposal liquidation risk
      • shift back to the lessee
      • correlation to disposal liquidation risk
        • profit sharing right
    • preparation for outside or other use or sale


  • sale to a third party
  • settlement of the liquidation result
    • loss
      • shift of a liquidation loss to the lessee according to the prevailing contractual agreement
    • profit
      • handing over a liquidation profit or a portion of it (profit share from profit participation of the lessee = percentage of the net liquidation revenues [= difference between the residual book value according to the lessor’s books and the net purchase price], less a processing fee for the sale) according to the prevailing contractual agreement to the lessee
Drucken / Weiterempfehlen: