Thursday, October 17, 2013

Trampled Property Rights In Germany

Trigger

I just (10/12/2013) read this outspoken article in the online edition of my home town newspaper Frankfurter Allgemeine Zeitung titled “Enteignung der Hausbesitzer” (German language, meaning expropriation of homeowners).

German Constitution

The German post-war Constitution contains one peculiar provision in Article 14 (2) stating “Eigentum verpflichtet. Sein Gebrauch soll zugleich dem Wohle der Allgemeinheit dienen…“” (Private property obligates. Its use has to serve the general public as well.).

Since adoption of the Constitution in 1949, certain types of property owners increasingly expropriated, most prominently homeowners/landlords versus tenants.

According to highest court rulings, tenants have a right analogous to property rights to live in their rental abode.

Extreme Tenant Protection At The Expense Of Landlords

Landlords in Germany face incredible government mandated strict and comprehensive price controls regarding rent.

Landlords are incredible constraint to terminate rental agreements or to evict tenants. Generally speaking, a landlord can only legitimately terminate a lease agreement for genuine and convincing personal need (Eigenbedarf). German courts have predominantly decided in favor of tenants as if in dubio pro reo. Such court proceedings can easily take several years.

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