Intended Owner-Occupation – Things Condo Owners Need to Bear in Mind
Whenever a freehold or condominium owner develops a personal need for the apartment acquired as private investment, he or she may claim his or her right to owner occupation. Under German law, however, terminating a tenancy due to intended owner occupation is permissible only if the owner can quote a plausible and demonstrable reason for giving notice. Qualified reasons include, without being limited to, the fact that one of the owner’s children needs the flat. Important to note here: The reason for the intended owner-occupation or owner’s-dependent-occupation must still apply at the time at which the termination takes effect, not just at the time at which notice is given. Another thing to remember: The person claiming owner-occupation rights need not necessarily be the owner himself or herself. In addition to children, eligible dependents include parents, siblings, grandchildren nieces and nephews. This is true even for persons not actually related directly to the owner, but cohabiting with him or her, e.g. the owner’s spouse or lifetime companion.
Intended Owner-Occupation: Written Notice Mandatory
Assuming these requirements are met, there are certain formalities to observe. Notice must be given in written form. The owner must be able to substantiate that the notice was actually delivered. Notice periods may vary from one case to the next: Depending on how long the tenant has already lived inside the flat, the notice period can be anywhere from three to nine months. If the removal implies particular hardship for the tenant – for instance, if the tenant has lived in the flat for a very long time or is of advanced age – the tenant may object to the termination of tenancy. Indeed, the owner is held to inform the tenant of his or her right to object to the termination.
Termination of Tenancy for Intended Owner-Occupation: Observing Lock-up Periods
Special rules apply whenever the house in which the condominium is located has only recently been converted into freehold property. As often as not, lock-up periods will be in place that protect incumbent tenants against termination of tenancy for up to ten years following a condominium’s acquisition. Just how long the lock-up period is can vary even inside the same municipality. Owners wishing to claim intended owner-occupation are therefore well advised to check the exact waiting periods in their hometown first.
Whether Prior to an Acquisition...
Even ahead of an acquisition, the Accentro Real Estate Encyclopaedia offers interesting facts and decision guidance: We will coach you through the first steps on your path to homeownership. For instance, it provides information on the process flow of a condominium purchase. It will also tell you what sort of documents you need in order to buy property, and where to obtain them.
... or after – Our Real Estate Encyclopaedia Provides the Answers You Need
Once you have bought a property, you may wonder who is going to manage your condo and how. After all, caretaking your property is one of your main obligations as a condominium owner. In addition to numerous tips and suggestions, you will find answers here to many questions involving the property management subject, such as: What does “individual freehold ownership” mean? What exactly do “condominium regulations” govern? And what does the term “condominium fee” imply? In addition, we elaborate subtle differences between terms such as “real estate management” and “corporate real estate management.”
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