Coronavirus - Government measures in key jurisdictions - Flipbook - Page 40
Germany
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Property
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For consumer loan agreements concluded before 15 March 2020, lenders’ claims for
interest or repayment of instalments due between April and June 2020 are deferred
for a period of three months from the due date if the borrower suffers a loss of income
due to extraordinary circumstances caused by the spread of the COVID-19 pandemic
which makes it inappropriate for the borrowers to fulfil their obligations. After expiry
of this moratorium, the payment obligation will resume. The individual payment dates
as well as the end of the term of the loan will be postponed by three months in each
case, unless the parties agree otherwise. The regulations are to apply to consumer
loan agreements only. However, there is the possibility of extending the scope of
application of the law by means of a statutory instrument to small companies as well.
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Corona-info: the legislator acts – we summarise for you.
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The German government has passed legislation that excludes terminations of
tenancy agreements in the event of late payment of rent for the period from 1 April
2020 to 30 June 2020 if the failure to pay is due to the effects of the COVID-19
pandemic. The correlation between the failure to pay and the COVID-19 pandemic is
not assumed but must be shown credibly by the tenant.
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The period from 1 April to 30 June 30 2020 can be extended by decree until 30
September 30 2020, i.e. to a total of six months. Any extension beyond this requires
the approval of the German parliament.
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The exclusion of termination ends on 30 June 2022, i.e. by this date the rent in
arrears (including default interest) must be paid to avoid a termination.
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Other termination rights remain unaffected, i.e. the ordinary termination right for
unlimited rental contracts as well as the extraordinary termination.
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For more information, please see here.
Litigation
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Are the courts
operating?
In general, the courts are operating normally. Despite of social distancing and travel
bans, court deadlines must be met and court hearings have to be attended.
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Currently, court hearings are often postponed due to the corona crisis. With the
consent of both parties, the court may switch to written procedure in appropriate
proceedings. Alternatively, if the necessary technical equipment is available, hearings
may also be permitted via video conference without the consent of the parties.
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Dispute resolution before state courts and arbitral tribunals in times of the COVID-19
pandemic
Have any changes
been made to
the laws around
property, rent and
enforcement?
Government measures in key jurisdictions
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