{"id":5905,"date":"2016-12-28T15:22:45","date_gmt":"2016-12-28T13:22:45","guid":{"rendered":"https:\/\/winheller.com\/blog\/en\/?p=5905"},"modified":"2020-12-14T13:19:42","modified_gmt":"2020-12-14T11:19:42","slug":"termination-outstanding-rent","status":"publish","type":"post","link":"https:\/\/winheller.com\/blog\/en\/termination-outstanding-rent\/","title":{"rendered":"Termination due to outstanding rent despite the lapse of a lengthy period of time"},"content":{"rendered":"<p>The Federal Supreme Court (Bundesgerichtshof; &#8220;BGH&#8221;) has again given an important judgment for all tenants and landlords. The court ruled that an extraordinary termination of a (residential) tenancy agreement due to outstanding rent was still possible if the failure to pay rents occurred a longer period ago.<\/p>\n<h3>Extraordinary termination due to outstanding payments<\/h3>\n<p>According to the German tenancy law, a landlord is entitled to terminate a tenancy with immediate effect if the tenant has failed to pay the rent, or a substantial part thereof, on two consecutive dates. Additionally an extraordinary termination is possible if the tenant fails to pay an amount equal to two rents over a period extending over more than two payment dates.<\/p>\n<h3>Reasonable termination period in case of on-going contractual obligations<\/h3>\n<p>However: A tenancy agreement is a so-called on-going contractual obligation. According to the German Civil Code (BGB), for an extraordinary termination of an on-going contractual obligation to be effective, it must be given within a reasonable period of time after the reason for it (here: the failure to pay), has become known. In many cases, the reasonable period of time is assumed to be two weeks.<\/p>\n<h3>&#8220;Reasonable&#8221; period of time not required in tenancy law<\/h3>\n<p>In the case at hand, the landlord, terminated the tenancy agreement several months after the tenant&#8217;s failure to pay. The Federal Supreme Court has now granted the eviction case. The court held that tenancy law being a self-contained area of law was not subject to the general legal provisions on the termination of on-going contractual obligations. According to the tenancy law&#8217;s provisions on termination, however, there is no &#8220;reasonable&#8221; period for exercising the right of termination due to outstanding payments.<\/p>\n<p>This decision is welcome. It provides clarity for the parties and enables the landlord to react in a fair manner in case of financial difficulties of the tenant without being obliged to terminate the tenancy immediately. Our <strong>expert attorneys<\/strong> will be pleased to assist you if you wish to rent out your property.<\/p>\n<p>Federal Supreme Court (BGH), Judgment of July 13, 2016, VIII ZR 296\/15<\/p>\n<p>Continue reading:<br \/>\n<a href=\"real-estate-germany\/\" target=\"_blank\" rel=\"noopener\"><strong>Top ten real estate issues of buying and renting real estate in Germany<\/strong><\/a><br \/>\n<a href=\"close-look-at-excessive-real-estate-prices\/\" target=\"_blank\" rel=\"noopener\"><strong>Take a close look at excessive real estate prices in Germany<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Supreme Court (Bundesgerichtshof; &#8220;BGH&#8221;) has again given an important judgment for all tenants and landlords. The court ruled that an extraordinary termination of a (residential) tenancy agreement due to outstanding rent was still possible if the failure to pay [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":6029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1166],"tags":[],"class_list":["post-5905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-law"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/posts\/5905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/comments?post=5905"}],"version-history":[{"count":3,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/posts\/5905\/revisions"}],"predecessor-version":[{"id":7130,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/posts\/5905\/revisions\/7130"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/media\/6029"}],"wp:attachment":[{"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/media?parent=5905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/categories?post=5905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/tags?post=5905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}