German Federal Supreme Court

Auer Witte Thiel informed: tenant is in default of payment, work also ordinary termination Munich July 2013: neither Article 573, paragraph 2 No. 1 BGB 569 ABS. 3 BGB No. 3 are on an ordinary termination due to default of payment applicable. The Federal Supreme Court in a ruling made it clear. The firm Auer Witte Thiel informs about the backgrounds of the judges decision and explains what the verdict for landlords.

According to the German Federal Supreme Court, other rules apply to an ordinary termination due to default in payment, as for extraordinary dismissal for the same reason. So refers to 543 paragraph 2, sentence 1, no. 3 BGB, which as a precondition a minimum Mietruckstand of two month’s rent or a default period of two months in a row provides alone on extraordinary cancellations. May be below this threshold value, however, in an ordinary termination, refers to the judgment of the Federal Court by the 10th of October 2012 (AZ. Auer Witte Thiel VIII ZR 107/12). Federal Court judges: legal requirements for extraordinary termination, with neat not to his judgment came the Federal Supreme Court in a case in which a tenant first had fallen due to non-payment or incomplete payment of the advances of its heating costs in default.

His landlady announced him so punctually. After he legally had been sentenced to payment of the receivable and finally paid them, the tenant with the current monthly rent fell into arrears. Then, the landlady announced again on time. The tenant went into revision, so that finally the Bundesgerichtshof concerned with the case, so Auer Witte Thiel. In his decision dated the 10th of October 2012 (AZ. VIII 107/12) the Supreme Court came to the following conclusion: an ordinary termination section 569, paragraph 3 is not applicable No. 3 BGB. Therefore the lessor have wait also not two months until the final condemnation of the tenant on the 15.11.10 with their termination. The lease was effectively ended on October 5, 2009. Auer Witte Thiel: Can landlord from which this conclusion Landlord move BGH judgment have explained even Auer Witte Thiel, you can properly terminate a tenancy if the Mietruckstand of the tenant but less than two is more than one month’s rent, the judgment of the Federal Court of Justice. Even if exceeds the default duration of one month, two but not yet reached, the landlord may terminate. The two-month notice according to 569, para 3 No. 3 BGB touched in this case. About the law firm Auer Witte Thiel, the specialization areas of focus and the development of core competencies in certain disciplines are indispensable in the legal services sector. Auer Witte Thiel is a business law oriented law firm and represents several German insurance companies.