GRP Rainer LLP

Tenancy Termination Possible, if Landlord Would Like to Use the Property for Commercial Purpose

It is now permissible for a landlord to cancel a lease agreement contract if the landlord wishes to use the leased property for commercial purposes and therefore not for personal use.

 

Cologne, NRW -- (SBWIRE) -- 06/17/2013 -- GRP Rainer Attorneys and Tax Accountants in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart, Hanover, Bremen, Nuremberg, Essen and London www.grprainer.com/en explain: The German Federal Supreme Court ruled in its judgment from 26 September 2012 (Az. VIII ZR 330/11) that the termination of a lease by the landlord is permissible if the rental property is to be used by a family member for commercial purposes.

In the specifics of such a particular case, the landlord based the termination of the lease on the fact that his wife had the intention to move their law firm into a rented apartment in their own residential dwelling house. The apartment of the landlord was also in the residential dwelling house of the landlord. The tenant, who did not accept the termination, asserted compassionate grounds and defended themselves against the notice of termination. The Court then made a decision that upheld the effectiveness of the termination. The judges were able to justify this decision because the statutory provision foresees that it is possible for the landlord to terminate the tenancy with a legitimate interest. This would be the circumstance in the present case.

The fact that the landlord lived with his family in the disputed residential dwelling house simply speaks directly to the legitimate interest of the landlord. The interest of the lessor in the professional use of the home due to the constitutionally protected freedom of occupation was not given less legal consideration than the legally regulated personal use of the premises for residential purposes.

In considering whether or not to terminate a tenancy, it should also be determined whether or not the lease contract agreement pertains to a commercial property or housing tenancy because each of these is subject to different legal regulations. In particular, neither a special protection against termination nor the so-called social clause, the right of the lessee to object to termination, exists for commercial property tenancies.

A lawyer experienced in commercial tenancy law can examine individual cases and determine exactly which concerns exist in the contract and likewise also help with the drafting of lease contracts.

About GRP Rainer
GRP Rainer LLP www.grprainer.com/en/ is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices Cologne, Berlin, Bonn, Dusseldorf, Essen, Frankfurt, Hamburg, Hannover, Munich, Stuttgart, Bremen, Nuremberg and London UK.

Contact Michael Rainer
Lawyer, Managing Partner
GRP Rainer LLP
Hohenzollernring 21-23
50672 Cologne
Germany
Phone: +49 221-27 22 75-0
info@grprainer.com
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