Resolve Property Disputes in Germany

Resolve Property Disputes in Germany

Updated on Thursday 28th January 2016

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Resolve-property-disputes-in-GermanyLegislation on real estate in Germany

The main legislation related to real estate property in Germany is the Civil Law, more specifically Book 11, also known as the Law of Obligations. Throughout the years, the German real estate market  evolved and the authorities have decided to improve the legislation which is why in 2001 the Government enabled the Tenancy Law Reform Act which covers lease contracts and housing leases. Despite all laws regulating the relations between landlords and tenants, disputes related to real estate property still appear as the legislation does not cover all aspects. Litigation over properties usually appears on more than one level, therefore it can be resolved in different ways.

Frequent litigation cases related to properties in Germany

Disputes over German real estate property may appear:

  • -           between citizens;
  • -          between citizens and companies;
  • -           between companies.

Also, real estate litigation may occur not only when renting a property, but also when buying one. The most common disputes related to properties in Germany are:

  • -          tenant and landlord disputes over lease contracts;
  • -          insolvency disputes between landlord and tenant;
  • -          neighbor disputes over trespassing or nuisance matters;
  • -          property transaction litigation.

The main ways of resolving litigation related to real estate are court settlement or arbitration. Our lawyers in Germany can advise you on the best course of action to take in case of property disputes.

Resolution of property litigation in Germany

Depending on the situation, litigation over real estate property can be settled by the German local courts or by arbitration. Court litigation is currently one of the most popular ways of resolving real estate disputes between landlords and tenants. German courts are known to be very effective and in such type of litigation cases, parties are not required to have a legal representative. However, it is advisable to first verify with a German law firm the legal means one has in order to have a successful outcome.

In the case of commercial real estate disputes, arbitration is by far preferred because it is less time and money consuming.

If you need assistance in property disputes, you can contact our German attorneys for legal guidance.