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Berlin Rent Act passed - What are the practical consequences?

Auteur
Dr Christian Hilmes

Partner

Hamburg

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Scheel Jochen
Dr Jochen Scheel

Partner

Frankfurt am Main

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Dr Michael Fink

Counsel

Duesseldorf

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Fischer Matthias
Matthias Fischer

Counsel

Frankfurt am Main

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Olgemoeller Udo Herbert
Dr Udo Herbert Olgemoeller

Counsel

Frankfurt am Main

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07 février 2020

On 30 January 2020, Berlin’s House of Representatives passed the hotly discussed Berlin Rent Act, introducing the so-called “rent freeze”. It is expected to come into force in late March/early April 2020 with retroactive effect as of 18 June 2019.

In what specific cases does the Rent Act apply and what are the legal consequences in the event of non-compliance? Is the legislation constitutional and what about including reserve clauses for new residential lease agreements in case the Rent Act does prove unconstitutional?

Our bulletin summarises the essential developments and gives a first evaluation from the real estate law perspective.