The lifetime handover of real estate or condominiums from parents to their children while simultaneously reserving housing or usufruct rights is a family practice that has been in place for decades.

 

If the property or condominium is rented out to a third party by the person entitled to the usufruct, the essential question that arises for everyone involved, especially after the death of the person entitled to the usufruct, is whether the existing tenancy agreement is automatically transferred from the person entitled to the usufruct to the owner of the property or condominium , or is dissolved by the death of the person entitled to usufruct.

 

The fact that in this context it is of considerable legal importance whether the rental agreement was concluded with the usufructuary of the entire property or with the usufructary of just an individual condominium property is shown by the legislation and The distinction made in case law between main and sublease agreements.

The question of whether an existing relationship is based on a main or sublease agreement is of considerable importance for both landlords and tenants because many of the obligations of the respective landlord or rights of the respective tenant provided for in the Tenancy Law (MRG), such as ex – the entry of a new owner into an already existing relationship upon the death of the original owner, only applies to main rental agreements.

The current newsletter gives you an overview of the legal consequences resulting from this distinction.

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