Judgment of the Federal Court of Justice: Owners have to renovate scrap properties

Status: 10/15/2021 11:08 am

What to do if the renovation of a completely run-down property becomes disproportionately expensive? According to the judgment of the Federal Court of Justice, neglected ailing buildings must also be renovated.

According to a ruling by the Federal Court of Justice (BGH), apartment owners are not released from their renovation obligations due to a lack of maintenance or obsolescence. A community of owners cannot simply let a building fall into disrepair and then decide to ban its use. Such a ban is illegal, announced the BGH. Only destruction through isolated events such as fires, floods or explosions could be a reason, announced the presiding judge of the fifth civil senate, Christina Stresemann.

Revision before the BGH is successful

It was about a more than 40 year old parking garage in Augsburg. Most of the building, in need of renovation, had been closed for years. However, three levels were still in use. These belong to a company that sublet them to a hotel. However, when the building authority requested proof of fire protection, the owners’ association imposed a complete ban on the use of the car park by majority vote. The community did not want to renovate the parking garage and advised the company that they could do it themselves.

On the other hand, this sued unsuccessfully before the district court of Augsburg and in the appeal before the district court of Munich. The district court ruled that the community of owners did not have to renovate because the slowly decaying parking garage had already been destroyed to more than half of its value. The cause of the dilapidation is irrelevant.

Judgment is fundamental

The BGH saw it differently. Despite the high costs, the community of owners has to renovate the property. With a mere renovation backlog, there is not even a point in time that can be used for a before-and-after comparison of the value, said the presiding judge. The judgment is of fundamental importance and also applies to properties in need of renovation that contain apartments.

With information from Klaus Hempel, ARD legal editor

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