Rental condominiums: Federal Court reaffirms right of first refusal for … – Daily Mirror

Rental condominiums: Federal Court reaffirms right of first refusal for … – Daily Mirror

18:21 clock Ursula Knapp

Does the owner of a tenant not that his house is to be sold, which can be expensive for him. For tenants who can not claim their right of first refusal, therefore, entitled to compensation.

The Bundesgerichtshof (BGH) has tenants for the first time awarded damages because her apartment converted into a condo and was later sold without her knowledge. So its purchase was defeated. The tenants from Hamburg require about 80 000 euros as compensation for damages. Basically, the Supreme Court ruled on Wednesday, they must pay their former landlord for damages. However, the exact amount has yet to be determined.

The statutory pre-emption of the lessee applies when it is converted during the rental period, the living room in a condo and then sold.

To the displacement of the tenant must give by subsequent dismissal of the captive buyer borders, enshrined the right of preemption of the lessee in such cases in 2001. A seller or prospective buyer must inform the tenant of the purchase contract and its existing right of first refusal. The tenant has to decide whether to buy or not within a set time limit. He must then pay the price that a potential buyer would have paid.

tenant complained because they were ignored

Now the Mietsenat the Supreme Court case decided the tenants were in 1992 in a seven families of property confiscated in Hamburg. The property was not divided into condominiums. Later this transformation took place, and the house was given to the daughter of the owners family. When his father died, the mother kept a beneficial interest. And the mother died, sold the daughter of 2011, the entire condominium for approximately 1.3 million euros. The tenants were not informed of the sale even about their right of first refusal. The buyer then offered to the tenants to their apartment for 266,250 euros to buy. Who complained because they were passed over at first sale. For there was the price for your home – still located at 186 500 euros – starting from the 1.3 million. Since its purchase was defeated, now they would have a loss of about EUR 80 000. The lower courts had dismissed the action, also passed over tenants were not entitled to damages. On appeal by the t enant, the Supreme Court took the case to the revision in itself, saying the tenants first to compensation.

The lawyer of the owner of the house had argued that the tenant would have had no more right of first refusal. Because they got transferred the condos as a gift. This is an initial transfer of ownership was made and the sale was to be regarded as a second sale. In resales of condominiums but tenants have no preemption

Federal Judge:. A donation is not a purchase

That argument did not follow the Supreme Court. A donation is not a purchase. The tenant may therefore assert no preemptive right gift. Thus the daughter was after conversion of the property into condominiums Erstverkäuferin. The tenants were unable to use their right of first refusal, because they knew nothing of the conversion. Since they can purchase their rented apartment only at a much higher price, they have a financial loss.

Seller converted condos but need not have too much anxiety, now to stand with one foot in the compensation process. Property sales must always be made before a notary. The usually clears up on the right of first refusal. However, retailers are well advised to be explicit about the notary on the question of a possible pre-emption

Since the Supreme Court ruling is clear. If the preemption of a tenant thwarted the will to stand by the seller expensive. (Reference: Bundesgerichtshof VIII ZR 51/14)

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