Real Estate updates

Austria

Contributed by Graf & Pitkowitz Rechtsanwälte GmbH
Supreme Court manages shopping centre management costs
  • Austria
  • June 08 2018

Service charge provisions in shopping centre lease agreements frequently give rise to disputes between landlords and shop operators. In a recent decision on such costs, the Supreme Court offered some insights into shopping centre lease agreements which go beyond service charge provisions.

Supreme Court: no change of control despite departure of majority shareholder
  • Austria
  • March 09 2018

The Supreme Court recently considered whether a landlord can increase the rent if the majority shareholder of a partnership dies and his or her shares are distributed equally among the remaining partners, none of whom holds a majority in the partnership. In the decision, the Supreme Court offered an insight into how to assess the change of control in a company that is not a corporation.

Parliament stomps on stamp duty for residential leases
  • Austria
  • November 24 2017

In the run up to the recent snap elections, Parliament passed a bill exempting rent agreements for residential leases from stamp duty. The stamp duty on non-residential leases – in particular, commercial and retail leases – remains unchanged. However, these leases are being re-evaluated due to recent case law from the tax authorities.

Another brick in the wall: Constitutional Court reviews statutory rent regulations
  • Austria
  • August 18 2017

In 2015 Austria introduced an act which allows individuals, under certain conditions, to challenge laws before the Constitutional Court as unconstitutional. This gave hope to many landlords, which saw this as a tool to challenge the existing rent control regulations. The Constitutional Court recently handed down two new decisions on the same matter with surprising results.

Act on Equal Opportunities for Persons with Disabilities creates stumbling blocks for landlords
  • Austria
  • February 03 2017

The Act on Equal Opportunities for Persons with Disabilities recently entered into full force. The act prohibits, among other things, constructional barriers which prevent or impede disabled individuals from entering a building without help. While the act primarily addresses persons offering goods or services in such buildings, it also has implications for persons publicly offering real estate. In addition, the act has a significant impact on existing and new lease agreements.


Chile

Recognition of new in rem right affecting land use
  • Chile
  • July 29 2016

The recently passed Law 20,930 recognises a new in rem right of conservation that could affect land use. Once established, a conservation right will be transferable and transmissible and cannot be separated from the land for which it has been created. The right will be indefinite, unless the parties agree otherwise when it is established.


Cyprus

Pitfalls to avoid when buying property in Cyprus
  • Cyprus
  • February 16 2018

Purchasing property in Cyprus can involve a number of pitfalls. Potential purchasers are advised to exercise extreme caution when buying property, especially if the title deed is not readily available, which is a common scenario when purchasing new property in Cyprus. Above all, it is paramount to obtain independent legal advice from a competent lawyer. A good lawyer should ensure that purchasers are protected from these potential problems.

Immovable property tax rates for 2016
  • Cyprus
  • August 19 2016

Immovable property tax is payable annually and calculated by reference to the market value as at January 1 1980 of immovable property owned by the taxpayer at the beginning of the calendar year. For 2016 liability will continue to be calculated by reference to 1980 values, but immovable property tax will be abolished with effect from the beginning of 2017.


Georgia

Constitutional Court sets out new standard for purchase of real estate in Georgia
  • Georgia
  • February 09 2018

The Constitutional Court recently considered issues raised in the decision of a lower court in which the legal presumption of accuracy and completeness of entries in the Public Register in relation to real estate was declared in part unconstitutional. The decision may have a significant, adverse impact on the real estate market in Georgia and will be relevant to any real estate transaction, including taking mortgage security.


Germany

Contributed by Noerr LLP
New RETT rules for share deals
  • Germany
  • July 06 2018

The Ministers of Finance of the Federal States recently agreed on new real estate transfer tax (RETT) rules for share deals. According to official press releases, a fundamental RETT reform that had been previously discussed was not agreed. Rather, the agreement consists of new RETT rules regarding share deals with a lower threshold, longer holding periods and aligning the rules that are applicable to corporations with those that already apply to partnerships.

Sale of real estate by special purpose vehicles
  • Germany
  • April 20 2018

Transaction structures involving special purpose vehicles, whose main assets after completion of the purchase process consist only of the purchased real estate, are often chosen in Germany. Such structures are used in particular to shield from liability, so that third-party access to the special purpose vehicle's assets is limited. They are also used to facilitate a sale without incurring real property transfer tax for the exit.

Impending terminability of land use agreements for energy plants
  • Germany
  • December 08 2017

The operation of energy plants usually means securing the required land long term by way of a use agreement. Prematurely ending a use agreement can substantially reduce the profitability of investments in energy plants. Defects in the written form of use agreements therefore constitute a risk for such investments. However, the Federal Court of Justice has decided that written form remedy clauses are invalid and do not prevent a contracting party from terminating a use agreement by invoking a written form defect.

Rental agreement termination for landlord's own use – new case law
  • Germany
  • June 16 2017

A landlord can terminate a rental agreement for residential premises if he or she has a justified interest in ending the lease. Two recent Federal Court of Justice decisions provide clarification regarding a landlord's needs as grounds for termination. While the change in case law regarding the legal consequences of a breach of the duty to offer is welcome, the judgments also show that there is no one-size-fits-all answer to the question of whether termination due to a landlord's needs can be declared valid.

Benchmark for determination of compensation value for use of residential property
  • Germany
  • March 17 2017

A residential landlord's right to compensation for use against a tenant who has been given notice of termination but not vacated the property in time is often of concern if the landlord demands compensation to the value of the rent customarily paid in the area. Until now, how to calculate this compensation precisely has been unclear. A recent Federal Court of Justice case has created legal certainty for those applying the law and has strengthened the interests of landlords.