Tenant‑list verification when buying a tenanted building: exact documents, red flags and sample notary warranties

What to demand — exact documents, itemised

Ask the seller (and the property manager) for originals or certified copies of the tenancy documents and supporting evidence — not summaries. Specify hard copies in German plus an English translation if you cannot read German.

1) Full signed lease files for every unit: the signature page(s) and all annexes (index clauses, special agreements, inventories, subletting permissions). Check that long fixed‑term leases are in writing (see § 550 BGB). ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/bgb/__550.html?utm_source=openai))

2) Payment evidence — for each tenancy, provide a chronological rent ledger with bank transfer receipts (SEPA payment messages), direct‑debit mandates (SEPA‑Lastschrift) or paid rent invoices covering the last 12 months (or since the lease start if shorter). Where possible ask for the underlying bank account statement lines (redacted for privacy) that prove the transfers.

3) Tenant security deposits (Mietkaution): demand the original deposit receipts and the bank statements showing the deposit account(s) where each tenant's money is held. German law limits and prescribes the treatment of deposits — the account(s) and interest handling should be documented. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/bgb/__551.html?utm_source=openai))

4) Service‑charge (Betriebskosten) files: the last three annual Betriebskostenabrechnungen with proofs of settlement and any unresolved reconciliation claims. § 556 BGB sets the accounting duty and the twelve‑month rebuttal window for tenants; you must see the current status of these calculations. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/bgb/__556.html?utm_source=openai))

5) Notices and litigation: copies of any termination notices, pending Mahnverfahren / Räumungsklagen, police‑or court‑records related to the property, and minutes of the property manager or WEG meetings that record extraordinary levies.

6) Management and powers of attorney: the property manager contract, any authorisations to collect rents, and written evidence who has access to tenant files and keys.

7) Tenant contact list and GDPR: ask for a tenant list showing unit number, current monthly rent and tenancy start date. For contact details you will usually need tenant consent; if you cannot get consent, insist on notarised seller warranties about the accuracy of the list (sample wording below).

Why these documents matter (legal anchors)

Written form and signature pages matter because a lease that is for a period longer than one year must be in writing or it converts into a contract for an indefinite term — that changes termination rights and yield projections. See § 550 BGB. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/bgb/__550.html?utm_source=openai))

Deposits are legally limited and must be handled in a particular way; tenants have a right to interest and special rules exist for how those funds are kept. You must obtain bank evidence proving that the seller held funds correctly and separately for each tenant. See § 551 BGB. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/bgb/__551.html?utm_source=openai))

The landlord’s duty to render Betriebskostenabrechnung on a yearly basis and the tenant’s twelve‑month objection period mean unsettled utility reconciliations can convert into prospective liabilities for the purchaser if not disclosed. See § 556 BGB. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/bgb/__556.html?utm_source=openai))

Red flags that kill the advertised yield

No original signature pages or long leases only as email PDFs. If a ‘long lease’ lacks signed pages the tenant may claim indefinite‑term status and earlier termination rights, destroying cash‑flow models. (See § 550 BGB.) ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/bgb/__550.html?utm_source=openai))

Missing deposit records or deposits paid into the seller’s operating account (instead of tenant‑deposit accounts) — this creates immediate cash‑flow risk and statutory claims by tenants under § 551. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/bgb/__551.html?utm_source=openai))

Large unresolved Betriebskosten deficits, missing reconciliations, or recent large special assessments recorded in WEG minutes. Tenants can reclaim overcharges within the statutory periods and the seller’s failure to account is a buyer‑risk. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/bgb/__556.html?utm_source=openai))

Ongoing eviction or rent‑enforcement litigation, repeated late‑payment patterns shown in bank statements, or a high share of short‑term lets in violation of local Zweckentfremdung rules — any of these materially increases operational risk.

Practical protective measures and notary tools

1) Require certified copies of originals and insist that the seller produce the actual bank statements that match the rent ledger and the deposit receipts. Do not accept only a printout from the property manager.

2) Stagger part of the purchase price into a Notaranderkonto or a specified escrow for potential undisclosed tenant claims — German notaries operate and hold Anderkonten under the Beurkundungsgesetz and implementing rules; use a written escrow instruction in the deed. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/beurkg/__58.html?utm_source=openai))

3) Obtain a notarial seller warranty clause that mirrors the documents you demanded (sample clauses below). Make performance of specific seller undertakings a condition for release of the escrowed sum.

Sample notary warranty clauses (for discussion with your notary/lawyer)

Below are concise, negotiable sample warranties. They are examples only — get a German notary or lawyer to draft final text.

1) Lease accuracy warranty: "The seller warrants that true copies of all tenancy agreements relating to the property are attached as Schedule A; each copy includes an original signature or legally valid electronic signature; no undisclosed side agreements exist." (Attach the signature pages.)

2) Deposit warranty: "The seller warrants that for each tenant listed in Schedule A a corresponding deposit is held on a tenant‑specific deposit account and that copies of the bank account statements evidencing the deposit are attached. The deposits were not commingled with operating funds and were treated in accordance with § 551 BGB." ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/bgb/__551.html?utm_source=openai))

3) Rent receivables warranty: "The seller warrants that the rent ledger attached at Schedule B reconciles to bank statements attached as Schedule C and that unpaid rent older than 60 days is disclosed in Schedule D."

4) Escrow release condition: "€ [amount] of the purchase price shall remain on a Notaranderkonto for 12 months and be released only upon written confirmation by the Notary that no undisclosed tenant claims materialising above € [threshold] have been presented." Make sure the notary’s escrow authority is recorded in the deed. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/beurkg/__58.html?utm_source=openai))

Do not treat these samples as legal advice. A German notary must draft enforceable warranty language and will explain tax, IP, and privacy implications.

Next steps and who to instruct

1) Send a formal document request list to the seller before signing a purchase agreement. Insist the notary receive the key supporting documents in original or certified copy at least with the notarisation file.

2) Engage a German lawyer (Mietrecht/transactional) to review the leases and to draft warranties. Engage a German tax adviser for risks from retrospective Betriebskosten or deposit mis‑treatment.

3) Use the notary’s escrow (Notaranderkonto) for any retention sums; notaries hold Anderkonten and must follow statutory rules on their use. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/beurkg/__58.html?utm_source=openai))