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Karlsruhe / Wiesbaden (dpa / lhe) - The Hessian Minister of Economic Affairs, Tarek Al-Wazir, welcomed the end of the legal dispute following the decision of the Federal Court of Justice (BGH) in Karlsruhe on the rent brake.
"We hope that this highest-level ruling now concludes the legal dispute," said the Green politician on Thursday, according to the announcement.
"The formal error that many federal states made at the time has long been cured in Hesse, the scope of the Rent Limitation Ordinance has even been significantly expanded and now includes 49 cities and municipalities."
In addition to regulating the existing market, the state government is using “every opportunity to create more affordable housing”.
In the long term, only an increase in supply would help against rising prices, said Al-Wazir.
"That is why the state government is making the record sum of 2.2 billion euros available for social housing by 2024."
The BGH had previously ruled that tenants who permanently pay too much rent in their federal state because of a failed start to the rental price limit are not entitled to any compensation.
In such cases there is no official liability, the Karlsruhe judges ruled in a pilot procedure against the state of Hesse.
(Az. III ZR 25/20).
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Since June 2015, the state governments have been able to designate “areas with tight housing markets”.
The principle there is that when new tenants move in, landlords may add a maximum of ten percent to the local comparative rent.
In Hesse and several other countries, however, there was a lack of implementation.
Courts overturned the original ordinances due to formal errors.
The consequences for the tenants: They cannot complain about their excessive rent.
A legal service provider wanted to hold the federal states liable for the financial damage.
That has now failed in the highest instance.
© dpa-infocom, dpa: 210128-99-207870 / 2
Announcement by the BGH
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Judgment of the Frankfurt Higher Regional Court of February 13, 2020
Judgment of the LG Frankfurt from March 25, 2019
BGH judgment on the Hessian ordinance of July 17, 2019
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Conny GmbH in January 2020 about the procedure
BVerfG ruling on the rent control of July 18, 2019
Rent brake in the law, § 556d BGB
Info sheet from the Berlin tenants' association on the rent brake
Overview of the tenants' association with designated areas
Topic page of the Ministry of Justice on tenant protection
Tenants' Association on the dispute