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Tag Archives: Germany

German Federal Court Reinforces Informal Modifications of Property Purchase Agreements

Ruling finds that parties may make informal modifications without notarization after the conveyance has become binding. By Christian Thiele The German Federal Court recently ruled that parties may informally modify a property purchase agreement if the conveyance has become binding — thereby confirming prior case law. The Court further held that the parties may also … Continue Reading

Reform of the German Mietpreisbremse: A Breakthrough in Tenancy Law?

Proposed reforms to the Mietpreisbremse aim at strengthening and solidifying restrictions on steep rent increases in German urban areas. By Christian Thiele and Eun-Kyung Lee After intense discussions within the ruling coalition, the German government this week adopted a draft bill regarding the reform of German tenancy law. What is the Mietpreisbremse? The Mietpreisbremse (literally … Continue Reading

German Federal Court: Property Sellers Who Withhold Usage History Risk Liability

FCJ decision finds that mere suspicion of contamination resulting from a sold property’s past use constitutes a defect. By Patrick Braasch and Christian Thiele The German Federal Court of Justice (FCJ) has ruled that an abstract suspicion of contamination resulting from a sold property’s past use already constitutes a material defect — irrespective of the … Continue Reading

Real Estate Transfer Tax: Putting an End to Share Deals?

The Conference of the German Ministers of Finance has announced measures against so-called share deal structures following the conclusion of the respective technical federal-state working group. By Tobias Klass Background So-called share deal structures have been the focus of German political debate about real estate transfer tax (RETT) for some time. The coalition agreement already … Continue Reading

Recent Developments in the German W&I Insurance Market

Increased competition among insurers and improved policy terms suggest the German W&I insurance market is becoming more favourable to investors. By Christian Thiele In real estate transactions, buyers and sellers naturally pursue conflicting interests when negotiating a sale and purchase agreement. On the one hand, sellers will strive to achieve the highest possible purchase price, … Continue Reading

Leaving Germany? Cross-Border Migration of German Real Estate Companies

Cross-border migration of German real estate companies is generally possible, however its admissibility must be determined on a case-by-case basis. By Christian Thiele International real estate investors continue to favour German real estate, however, the same does not always apply to German real estate companies. International real estate investors, for instance, often find German capital … Continue Reading

Urban Mining Briefing Reveals Huge Global Potential

By Jörn Kassow and Eun Kyung Lee Germany’s increasing shortage of natural resources and the corresponding mounting cost of extracting raw materials signals the need for alternative and innovative ways of collecting and recycling secondary raw materials. One promising method of securing potential secondary raw materials is “urban mining”, which aims primarily at reclaiming raw … Continue Reading

New German Foreign Investment Rules Threaten Deal Timetables

By Jana K. Dammann de Chapto and Joachim Grittmann The German government has tightened the rules for its review proceedings for M&A involving non-EU investors, with changes to its German Foreign Trade and Payments Ordinance (Außenwirtschaftsverordnung) that significantly increase foreign investment oversight. The new rules, which came into force on 18 July 2017, introduce a … Continue Reading

Responsibility for German Nuclear Waste Shifts With Creation of State-owned Fund

By Paul Davies, Joern Kassow and Alexander Wilhelm In early July 2017, operators of German nuclear power plants initiated the next step in the process of decommissioning by transferring €24 billion to the new state-owned fund for nuclear power plant waste disposal. The German state established the Fund for the Financing of the Nuclear Waste … Continue Reading
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