Non-transparency of a “center management” costs clause
> December 2014

Passing on “administrative costs” in general terms and conditions of business of a lease agreement for business offices is neither surprising nor in violation of the transparency commandment, even if the clause does not any quantification or some cap on the administrative costs. The form-like imposition of maintenance and repair of communal space and systems upon tenants without limiting the amount of the costs does violate § 307 para. 1, 2 of the Bürgerliches Gesetzbuch (the Civil Code, the “BGB”).

The clause of a commercial lease agreement agreed upon in form-like manner—which imposes separately upon the tenant of a shop located in a shopping center any non-itemized “center management” costs as ancillary costs in addition to the costs of “administration”—is not transparent and therefore ineffective under § 307 para. 1 sent. 2 BGB.