Federal Court of Justice, 06.07.2011, Ref.: VIII ZR 317/10
Tenancy law provides landlords with various options for realising their rental property themselves for certain reasons.
According to Section 573 (1) BGB, however, the landlord can only terminate the tenancy if he has a legitimate interest in terminating the tenancy.
Excluded grounds for termination are, for example, a rent increase or the intention to sell the property before or after the conversion.
According to Section 573 (2) BGB, however, the landlord has a legitimate interest in terminating the tenancy if
1. the tenant has culpably and not insignificantly breached his contractual obligations,
2. the landlord requires the rooms as accommodation for himself, his family members or members of his household ("personal use termination") or
3. the landlord would be prevented from making reasonable commercial use of the property by the continuation of the tenancy and would suffer considerable disadvantages as a result.
In particular, notices of termination for personal use or for realisation are often the subject of court decisions, as many tenants suffer financial or personal disadvantages as a result of the termination.
The above-mentioned judgement of the Federal Court of Justice has now established what content the landlord's letter of termination must have if the landlord terminates the tenancy for personal use.
Facts of the Case:
The defendant in the legal dispute was the tenant of a one-room flat of the plaintiffs.
In a letter dated 29 April 2008, the plaintiffs terminated the tenancy for personal use with effect from 31 January 2009.
In the letter of cancellation, the plaintiffs stated that the second plaintiff wished to continue her studies in Munich after completing a year of study abroad and establish her own household.
The local court ruled in favour of the plaintiffs' action for eviction.
On the defendant's appeal, the Regional Court dismissed the action on the grounds that the termination was invalid on formal grounds alone because the plaintiffs had not sufficiently explained the reasons for the termination.
Decision of the Federal Court of Justice
The BGH ruled in favour of the plaintiffs and confirmed its previous case law that the requirement in Section 573 (3) of the German Civil Code (BGB) for the landlord to give reasons for termination is satisfied if the letter of termination describes the reason for termination in such a way that it can be identified and distinguished from other reasons.
This was the case here. In the case of a termination for personal use, it is generally sufficient for the landlord to name the person for whom the flat is required and to explain the interest that this person has in obtaining the flat.
Other circumstances that have already been communicated to the tenant beforehand or that were otherwise known to the tenant do not need to be repeated in the letter of cancellation.
Source: Federal Court of Justice
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