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ARTICLE · 17 MARCH 2021

COVID-19 Legislation In Germany

Tenancy agreements are determined by the landlord handing over the rented property to the tenant – and the tenant paying rent for it

GermanyReal Estate and Construction

Tenancy agreements are determined by the landlord handing over the rented property to the tenant – and the tenant paying rent for it. If the tenant is in arrears with the equivalent to at least 2 months' rent, the landlord is entitled to terminate the tenancy (section 543 para. 2 no. 3 of the German Civil Code (BGB)). The law is designed to help tenants who are having difficulty paying rent due to their shops and practices being closed under COVID-19 lockdowns.

The March Law

On March 25, 2020, the German parliament (Bundestag) passed the Law to Mitigate the Consequences of the COVID 19 Pandemic in Civil, Insolvency and Criminal Proceedings (BT DruckS 19/18110). The law with the complicated name restricts the landlords' right to terminate tenancies. This applies to both residential and commercial tenancies as well as property leases. Accordingly, the regulations cover leases. Landlords may not terminate the tenancy due to rent arrears arising from the period April 1

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