Selling your rental apartment: what you should know as a tenant
When a rental apartment is up for sale, tenants have many questions. For example: What about the right of first refusal? What else is important - 5 questions and 5 answers.
It's news that causes unease among those affected: the rental apartment that you may have lived in for years is to be sold. In such a situation, many tenants fear that either a rent increase or termination by the new landlord due to personal use is imminent in the medium term. We clarify what rights and obligations tenants have in this situation.
Do I have a right of first refusal if the apartment I am renting is to be sold?
Regardless of whether the rental agreement contains a clause on the right of first refusal or not, tenants have a statutory right of first refusal if the owner wants to convert the apartments into condominiums and sell them to a third party.
Should the owner transfer the tenant, the following applies: If the tenant learns of the purchase before the landlord has handed over the apartment to the purchaser and the transfer of ownership has been entered in the land register, the tenant can still exercise their right of first refusal. If the tenant only becomes aware of the sale at a later date, they can claim compensation.
For tenants to be able to exercise a right of first refusal, a purchase agreement must exist between the owner of the apartment and a third party. However, this contract must not yet have been signed. Tenants can now enter into this contract that has already been negotiated. The tenant must accept the conditions negotiated between the seller and the third party, including the purchase price, for example.
Tenants must send a written declaration to the owner if they wish to exercise their right of first refusal. They have two months to do so after receiving notification of the intention to sell.
"There is no right of first refusal if the landlord sells the apartment to a family member or a member of their household," says Julia Wagner from the owners' association Haus & Grund Deutschland.
Do I have to let prospective buyers into the apartment?
Yes, tenants must allow potential buyers to view the apartment. "However, they can insist that the landlord or at least the property manager accompanies them," says Wagner. According to her, prospective buyers have no right to photograph the living space.
For their part, landlords must announce the planned viewing in good time. Particularly in the case of working tenants, notification must usually be given three to four days in advance, says Rolf Janßen, Managing Director of DMB Mieterschutzverein Frankfurt am Main. Landlords must take the tenant's working hours into consideration.
If the tenant is unable to attend on the announced date, they must make alternative proposals.
Does the new owner have to take me on as a tenant?
The law says that buying does not mean renting. In concrete terms, this means that the new owner also takes over the tenancy agreement when they buy the property. He or she can only terminate the lease in accordance with the general regulations.
For example, according to Julia Wagner, grounds for termination may also exist if a tenant has breached their duty - for example, because they have taken in subtenants without permission.
What if the new owner wants to move in themselves?
The new landlord can only give notice of termination for personal use after three years at the earliest.
According to Wagner, this period can be up to ten years if the adequate supply of rental apartments at reasonable conditions in a municipality or at least part of it is particularly at risk. The state governments can then explicitly designate such areas. In Berlin, for example, a lock-up period of ten years applies.
Regardless of the blocking period: what notice periods apply?
"In principle, a notice period of three months applies," says Janßen. This is extended by three months for the landlord after five and eight years since the lease was granted. It is therefore a maximum of nine months. "However, other notice periods may also be contractually agreed," says Janßen.
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- If the federal court rules in favor of the tenant in a legal dispute related to tenancy law, the landlord must comply with the judgments issued by the court.
- As an advisor in real estate, I recommend that tenants seek legal advice if they encounter any legal issues during the sale of their rental apartment, such as disputes over the right of first refusal or termination of tenancy.
- The tenant in a condominium should be aware that the sales process may involve the termination of their lease by the new landlord, in accordance with the applicable tenancy law and notice periods.
- In some cases, the new landlord may wish to terminate the tenancy early due to their personal use of the rental apartment. In this case, they must comply with the required notice periods under tenancy law.
- Tenants should cooperate with potential buyers during property viewings, but they have the right to request that the landlord or property manager accompanies them, and they should not allow photographing of their living space without their consent.
Source: www.ntv.de
