Real estate law

Real estate and the law

The property market is booming. Property prices may well be on the rise in many regions. At the same time, however, the property market is being subjected to an equally increasing amount of regulation. Rent control is just one aspect here. Real estate loans are also being affected by the property boom, as an increasing number of private investors are putting their money into real estate.

Purchasing real estate

The real estate purchase contract is the first place to look for potential legal risks. The buyer is granted a great deal of legal protection under this contract; if however, real estate financing (also) forms the object of the purchase contract, potential contractual risks connected to purchasing and financing should be analysed in detail before any contract, or even preliminary contract, is signed.

Legal considerations in the construction phase

It goes without saying that the construction phase of a property is associated with a number of potential legal problems. Reacting to issues quickly and strategically will enable you to act effectively, both regarding bringing a property to completion and, of course, in keeping any financial risks – for example, those caused by severe construction defects – to an absolute minimum.

The biggest risk to buyers during the construction phase lies in potential insolvency on the part of the building contractor. It is, therefore, a good idea to take a proactive approach to reducing specific risks in this regard, for example by agreeing to guarantee a performance bond or make payments only after the respective service has been rendered by the building contractor. It also makes sense to carry out regular inspections of the construction site, where you can identify any defects quickly and initiate any legal steps as early as possible.

(Commercial) landlord and tenant law

When letting or renting property, the landlord and tenant law and the related supreme court practice are hugely influential in terms of the possibilities and limits of designing tenancy agreements. It is therefore vital that tenancy agreements are kept up to date, whether for commercial or residential purposes. Tenancy agreements taken from the Internet are rarely up to date, meaning they often entail significant legal risks. Individual clauses or entire sections of a contract may prove void if they have not been updated after the Federal Supreme Court has amended individual aspects of established case law.

For landlords, in particular, it, therefore, make sense for tenancy agreements to be drawn up, or at least reviewed, by a professional – also and especially if you are planning to assign a property management company.

Neighbour law

It is not always easy to get along with neighbours – odours, noises and many other things can lead to substantial disputes between neighbours.
If a meeting between the neighbours involved is unable to rectify the situation, and if serious disturbances continue, it is only a matter of time before a lawyer is called upon to restore calm.

Landlord and tenant law

There is more to real estate than just construction and purchases. Landlord and tenant law also forms a large part of real estate law – whether for residential or commercial purposes. We are happy to help you – as landlord or tenant – in this specific area.

With regard to residential tenancy matters, both landlords and tenants tend to ask the same questions but from completely different angles. Can a tenancy agreement be terminated (for cause), for example, due to personal use on the part of the landlord or substantial defects? Are there specific notice periods for residential tenancy agreements and under what circumstances is a landlord permitted to give notice to a tenant? Can a tenancy agreement be drawn up for a fixed term and what rights and obligations exist with regard to aesthetic repairs? Or under what circumstances can the tenant reduce the rent due to defects affecting the rented property and when does the security deposit have to be repaid?

Other (statutory) regulations are often in force for landlords and tenants where commercial spaces are being leased or rented (commercial landlord and tenant law). There are also more contract design options with a commercial tenancy agreement than with a residential agreement. For instance, it is possible and, in fact, perfectly normal for a fixed-term commercial tenancy agreement to be drawn up for a long period. This, in turn, gives rise to legal questions and problems that do not exist in residential landlord and tenant law, for example about terminating a tenancy agreement (for cause). Another peculiarity of commercial landlord and tenant law concerns internal fittings and changes made to a property during the lease period: what is the tenant expected to do here when the tenancy agreement comes to an end?

Our key areas of activity in real estate law

Real estate law is a broad field that can very quickly involve huge sums of money. We can advise and represent you in pretty much all matters regarding real estate. We focus our legal activities in the following areas:

• Landlord and tenant law and leasehold law
• Residential property law
• Brokerage law
• Private construction law and regulations governing contracts for services
• Neighbour law