German commercial tenancy law: If the landlord intentionally prevents the use of the leased property, the tenant may terminate the lease without notice.

Higher Regional Court of Düsseldorf, 08.03.2016, Case No.: 24 U 59/15

Commercial lease agreement for 1000 square meters of paint shop and storage space

In this case, a fixed-term commercial lease agreement for a 1000 square meter commercial space was in question. The space was intended to be used both as a paint shop and for the storage of goods. The monthly rent was set at 3,927 euros. However, in March 2012, the tenant reduced rent payments to 1,198.47 euros and stopped making payments altogether in April 2012. The tenant claimed that the landlord had verbally promised to equip the commercial premises for use as a paint shop, which had not been fulfilled. Additionally, the landlord blocked access to the commercial unit with trucks for several weeks.

Extraordinary termination of the lease by the tenant

After the landlord failed to remedy the defects by the set deadline of 12.07.2012, the tenant terminated the lease extraordinarily and without notice through a lawyer on 06.08.2012. The landlord then filed a lawsuit, demanding payment of outstanding rent and advance payments for utilities in the amount of 41,641.53 euros for the period from March to December 2012. The District Court ruled in favor of the landlord regarding the base rent for the period from March to 06.08.2012, amounting to 19,196.59 euros. At the same time, the court found that the lease had been terminated by the notice on 06.08.2012.

Decision of the Higher Regional Court of Düsseldorf

The Higher Regional Court of Düsseldorf ruled in favor of the tenant. The court confirmed that the lease had been terminated by the extraordinary notice of 06.08.2012. The termination was justified under § 543 para. 1, 2 no. 1 BGB, as the landlord had prevented the proper use of the commercial unit by blocking access for several weeks. In doing so, the landlord had significantly breached her obligation to provide undisturbed use of the rented property as per § 535 para. 1 BGB.

No entitlement to utility advance payments

At the time of termination, the access blockade had already been in place for several weeks. The use of the space as a paint shop and storage area required unhindered access, making it unreasonable for the tenant to continue the lease until the contract’s end. For this reason, the landlord was not entitled to payment of utility advance payments for the period from March to August 2012, as the conditions for billing were not met.

Source: Higher Regional Court of Düsseldorf

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