lien by law

Lien by law – security for tenants and craftsmen

Introduction

Many people have already heard or read the terms landlord's lien and contractor's lien, but few are aware of what they are. Landlords and tradesmen in particular should be aware of these legal institutions, as they provide additional security in commercial transactions and safeguard your claims.

contractor's lien

According to Section 647 of the German Civil Code (BGB), the contractor is granted a lien on the movable items manufactured or repaired by the customer, provided they came into his possession when the order was placed. If a bicycle was sent for repair and not picked up even after several reminders, it is now possible to auction the bicycle publicly and satisfy the contractor's claim for compensation from the proceeds.

landlord's lien

The situation is similar with the landlord's lien, whereby a legal lien is created on the items brought in by the tenant. In principle, this right of the landlord does not expire even if the tenant removes the items from the rental property without the knowledge of the landlord or against the landlord's objection.

Requirements for the enforcement of the lien

However, there are certain requirements that must be observed before taking action and pursuing the realization of the lien.