Three-Year Protection Against Termination: Converting a Rental Apartment into Property

Termination block protects tenants for three years

If a third party buys the apartment, tenants are allowed to stay. The principle applies: "Purchase does not cancel rent". However, this increases the risk that the new owner will terminate the lease due to personal requirements.

However, the new owner must be patient for three years - until the so-called notice period ends. In cities with an increased demand for housing, this blocking period can even last up to ten years. According to the DMB, the statutory notice period applies once this period has expired. This can vary depending on the tenant's length of residence.

There are exceptions in milieu protection areas that cities designate. "In these areas, the owner may only carry out the conversion with the approval of the relevant authorities," explains Ropertz.

Lucrative business with clear rules

In principle, any apartment building consisting of several residential units can be converted - this is often lucrative for the owner. The proceeds from the individual sale can be higher than if they were to sell the whole house at once. The division is possible according to the Condominium Act (WEG, Paragraph 8). The owner needs a partition plan and a declaration of completion.

The partition plan is drawn up by an architect. The architect "enters each apartment, attic, cellar and other areas exactly in the plan", explains lawyer Klaus Reese from Kiel. The owner then submits the plan to the building authority, which issues the declaration of separation. The previous owner can then sell the individual units to third parties.

The owner must also draw up the declaration of division for the resulting community of owners. Reese advises potential buyers to check the document in detail to avoid any nasty surprises. One example is the question of whether owners in the rear building have to pay if the broken elevator in the front building is replaced

Birgitt Faust-Füllenbach gives another tip for buyers: "Make sure that the rent at least covers the ongoing housing benefit payments that you have to make as a member of the condominium." Otherwise, buyers will have to pay extra, says the legal advisor from the Bonn-based consumer association Wohnen im Eigentum.

The rental agreement can also be a stumbling block. "The buyer automatically enters into the existing tenancy agreement with all rights and obligations. They have no right to conclude a new tenancy agreement," says Faust-Füllenbach. This is regulated in the German Civil Code (BGB, Paragraph 566).

Faust-Füllenbach recommends that buyers obtain all correspondence between the previous owner and the tenant. This would show, for example, when the previous owner last increased the rent. The previous owner should also provide evidence of punctual rent payments. It is also important to check whether the rental agreement complies with the rules of the owners' association. Otherwise there is a risk of conflict.