Disclaimer of liability: We do not provide legal or tax advice, only practical information. The content of this website is a presentation of our activities and not an advertisement.
Collateral enforcement for the real estate industry — landlords and lessors.
When used correctly, the landlord’s lien pursuant to Section 562 BGB and the limited enforcement order pursuant to Section 885a ZPO (“Berlin eviction”) offer cost-effective and legally secure solutions for the real estate industry. These procedures also apply in cases where the heirs of deceased tenants waive their inheritance.
In this way, a prompt and legally secure eviction of rental properties blocked by the tenant’s property can be made possible. At the same time, the application of Section 562 BGB offers the possibility of enforcing outstanding rent claims and legal costs already incurred.
Advantages of the realization of liens:
- No legal costs for dunning and legal proceedings
- No enforcement costs
- Fixed auction date that cannot be postponed
- Trigger for the debtor’s higher willingness to pay
- Short-term implementation
- Low loss in value of the seized goods due to prompt sale
- Higher proceeds compared to realization by the insolvency administrator
- Short-term clearing of blocked storage areas
We specialize in the exploitation of rights of all kinds
Short-term availability of the rental property
Identification and selection
Pool of prospective buyers
Maximum legal certainty
Many years of experience
For over fifteen years, we have been entrusted with the exploitation of rights — securities, company shares, patents, IP rights, trademark rights, domains.
Time and cost savings
No time-consuming and cost-intensive dunning and legal proceedings necessary.
We perform due to:
Tenant does not vacate?
Are you at the end of your tether because your properties are blocked due to the tenant’s inability to pay, death or insolvency? As a commercial landlord, are you wondering why, in the event of insolvency, a large proportion of your rental claims are used up by the expensive proceedings?
We enable simple solutions for the real estate industry
legally compliant and cost-effective
on the basis of § 562 BGB, in the case of rent debtors, in the event of insolvency and in the event of the death of tenants.
For many years, we have been conducting public landlord lien auctions according to the so-called “Berlin model”. We provide a legally secure alternative to expensive evictions by bailiffs and their appointed agents.
With the amendment of tenancy law, the tried-and-tested “Berlin eviction” model was incorporated into the law in Section 885a of the German Code of Civil Procedure (ZPO). Despite years of resistance, our legal opinion has now found its legal basis.
Your advantages
- We enable prompt and considerably more cost-effective clearance than the usual bailiff-commissioned forwarding agency
- On request, we can conduct the auction in the rental property
- Our fees are almost exclusively based on the premium that we receive from the buyer. In this way, you avoid the bailiff’s fees.
- In the case of commercial tenancies, not all is lost even in the event of insolvency. We know how to achieve the best possible realization result for you vis-à-vis the insolvency administrator.
Lease debtor does not vacate?
Are you at the end of your tether because your properties are blocked due to the tenant’s inability to pay, death or insolvency? As a commercial landlord, are you wondering why, in the event of insolvency, a large proportion of your rent claims are used up by the expensive proceedings?
We enable simple solutions for the real estate industry:
legally compliant and cost-effective
on the basis of § 592 BGB, for tenants, in the event of insolvency and in the event of the death of tenants
For many years, we have been carrying out public landlord and tenant lien auctions in accordance with the so-called “Berlin eviction”. We provide a legally secure alternative to expensive evictions by bailiffs and their appointed forwarding agents.
Your advantages
- We enable prompt and considerably more cost-effective clearance than the forwarding agency usually commissioned by the bailiffs
- On request, we can conduct the auction at the leased property
- Our remuneration is based on the premium we receive from the buyer.
- In the case of commercial tenancies, not all is lost even in the event of insolvency. We know how to achieve an optimal realization result for you vis-à-vis the insolvency administrator.
With the amendment of tenancy law, the tried-and-tested “Berlin eviction” model was incorporated into the law in Section 885a of the German Code of Civil Procedure (ZPO). Despite years of resistance, our legal opinion finally found its legal basis. The advantage for landlords: Compared to the so-called Prussian eviction, it can be cleared considerably more cost-effectively.
The bailiff arranges for a key service commissioned by him to gain access, asks the tenant to leave the property and puts the owner back in possession of his property. He documents the items left behind by the tenant. This is done by means of photographic documentation.
The bailiff demands an advance payment for locksmiths and photographers.
In some locations in Germany, we can help landlords to reduce costs at this point. The locksmiths we recommend are usually cheaper. Photo documentation can also usually be carried out more cost-effectively by our utilization consultants. It is one of their daily tasks to carry out inventories with photo documentation professionally.
It is important to note that in accordance with Section 885 a ZPO, the property is realized due to default of acceptance. This means that no claims can be made by third parties due to retention of title.
Disposal: According to § 885 a ZPO , obviously worthless items can be disposed of by the landlord. Although it is the bailiff’s task to document the inventory found, he will not make any statement on the value of the inventory for reasons of official liability.
As a leading service provider in the field of lien realization, we have been carrying out landlord lien realizations according to the so-called Berlin model (also known as Berlin eviction) for many years. We help landlords to clear their rented properties — especially in comparison to the traditional process carried out by the bailiff in conjunction with clearance by a forwarding agent commissioned by the bailiff —
Questions about:
Manageable costs
We are obliged to carry out the valuation and realization at reasonable costs, taking into account the rights of all parties involved. The amount is based on the type of pledge and the effort required to achieve adequate realization proceeds in the interests of the debtor. As remuneration for his expenses and activities, the auctioneer receives a lump sum from the client and a so-called premium on the hammer price from the buyers. In order to avoid any accusation of squandering, the pledge should be advertised in an appropriate form. The greater the demand for the pledged item, the lower the flat fee.
Important to know: The debtor bears the costs of the proceedings. Unrealizable costs can be claimed as expenses for tax purposes by the creditor.
The Auctioneer shall have unlimited and personal liability for culpable breaches of duty. The client cannot release the auctioneer from this liability for damages. The auctioneer’s remuneration is therefore always also a liability remuneration.
Quick guide for the real estate industry (commercial landlords)
Tenant insolvency — how to act correctly
1) Immediate situation picture (what applies now)
- Once you have filed for insolvency, you will only communicate with the (provisional) insolvency administrator.
- The tenancy continues for the time being; termination only in accordance with the contract and insolvency law rules.
- Strictly separate receivables:
- - Rent arrears before filing for insolvency = insolvency claims → file for insolvency.
- - Rent/compensation for use after application/opening = debts of the estate → to be paid with priority.
- Check insolvency contestation: Irregular/delayed payments prior to filing can be reclaimed later.
2) Landlord’s lien — the key point
- Automatic creation: Landlord’s lien arises by operation of law when the tenant brings attachable items into the premises.
- The pledge of rights conveys segregation; you are entitled to preferential satisfaction from the realization proceeds.
- Decisive in practice: As soon as there is a risk of removal, you must actually secure the pledge of rights (objection to removal / actual securing).
- No unauthorized access: Implement security and access/key issues in strict compliance with the law.
3) Realization of the pledged items (tactics)
- Immediately address time-critical goods or goods with a declining value (seasonal goods, perishable goods, technology).
- If the administrator delays/blocks: demand speedy realization in writing and present a concrete alternative.
- In the event of an imminent loss of value, the appointment of an independent publicly appointed auctioneer can be enforced via the insolvency court.
- Objective: Higher proceeds, quick payout, quick clearance of the land.
4) Do’s — concrete roadmap
- Immediately in writing to the (provisional) administrator: notify the right to separate satisfaction, specify the objects, set a deadline for the realization decision.
- Create inventory/photo documentation; classify items according to value stability and usability.
- Propose a method of realization (public auction as a rule) and suggest a speedy appointment.
- Proactively manage the eviction and surrender of the property; prepare new tenancy in parallel.
5) Don’ts — typical mistakes
- “Simply keep” payments from the last few months without a contestation check.
- Incorrect classification of receivables (table vs. mass) → avoidable default.
- Tolerate removal of objects → pledge of rights expires.
- Hasty self-execution/“self-execution” → considerable liability and litigation risks.
6) When to escalate?
- No reaction / realization is delayed / loss of value threatens: reminder + short deadline.
- Then involve the insolvency court, creditors’ committee or creditors’ meeting.
- Submit an application for the appointment of an independent auctioneer or for a release/realization decision.
7) How we typically support
- Quick valuation of the items brought in (lien realization report).
- Legally compliant public auction by a publicly appointed, sworn auctioneer.
- Short-term buyer activation for the best possible proceeds.
- Result: maximum separation proceeds and rapid vacating of the rental space.
Important for your actions
Automatic pledge of rights is good — but only those who secure it practically at an early stage and manage the realization proactively will realize money and get the space back quickly.
