Keep your tenant informed of changes in ownership or management of the property with the notice of change of ownership/management. So far, there has been controversy in legal doctrine as to whether this legal consequence also applies if the lease has been entered into, but the lease has not yet begun and the tenant has not yet moved into the rental property. The Federal Supreme Court has just clarified this issue in its decision BGer 4A_393/2018 of 20 February 2019, which confirms the decision of the Commercial Court of Zurich HG160080-O of 15 May 2018 (Altenburger AG legal + tax represented one of the parties to the proceedings). The Supreme Court has ruled that, according to the wording of Article 261 of the Swiss Code of Obligations, a lease does not necessarily have to have begun and that the conclusion of the lease is sufficient for the transfer of the lease to a new owner. In rental law, the principle applies that a contract for the rental of immovable property in the event of sale of the property is generally transferred to the buyer of the rented property. In practice, this regulation is usually undisputed, since the interests of the parties involved coincide: an investor wants to acquire a rented object as far as possible, and the tenant wants to continue to use the premises rented by him regardless of the person of the owner – even after a transfer of ownership. This form describes what changes will take place and what will remain the same. This form also includes the name and contact information of the new owner and/or management. In addition to the contact information, this notice also includes the amount of the deposit that will be transferred to the new management. The Change of Ownership/Management form is an editable form, which means that you can customize the language of the form according to your specific needs.
You have the option to add a personal message about the property transfer or even a message to say goodbye to your tenants. During this transition period, it is important to offer an open and effective form of communication to keep all parties comfortable and informed. This communication is an effective method of communication to facilitate the range of emotions when transmitting management. If you had a fixed-term lease and the new owner of the property had the right to terminate it based on the above specifications, the previous owner will be responsible for any inconvenience suffered by the tenant as a result of the termination of the lease. Let`s say you rented a two-room apartment downtown and they had a three-year lease that would last two more years. However, if the prices of rental apartments have increased in the meantime, or if a former owner of your apartment was just a good person who rented the apartment for less than the market price, you can claim the difference in rent. For example, if you paid €300 per month for an apartment but now find a similar apartment for €400 per month, the former owner of the property will have to pay you the difference of €100 for the duration of your rental – that is, if your lease had lasted two more years (24 months), the previous owner will have to reimburse you €24 ×100. or 2400 €.
Of course, the disadvantage for the tenant should not be limited to the difference in rent – the costs can also include moving expenses, etc. Be sure to always check the land registry entries when buying a property. For example, if a lease has been registered in the land registry, you cannot terminate that lease even because of the difference in ownership of the property. In addition, various bodily characteristics or mortgages can be registered in the land register, which can subsequently become problematic. While a fixed-term lease can generally only be terminated for a valid reason, there is a difference in the change of ownership of a property. The buyer of the property can terminate the lease within three months of the purchase of the property with 3 months` notice. For example, if the new owner of the apartment informs the tenant the day after the purchase of the apartment that he wishes to terminate the lease, this contract will continue for another three months. If the new owner announces his intention to terminate the lease one day before the expiry of the 3-month period, the contract is also valid for an additional three months – the maximum duration of the lease can then be almost six months, depending on the notice of the new owner. However, if more than three months have elapsed since the change of ownership of the property, the new owner of the property loses the right to terminate the contract on this basis and again needs a valid reason. Another way to exclude the possibility of such a violation is to make an entry in the land register. The tenant has the right to require that the lease be registered in the land register and that each subsequent individual owner of the property must allow the tenant to use the property in accordance with the lease.
In the case of such an entry in the land register, the new owner of the property does not have the right to terminate the lease and, therefore, the tenant cannot be harmed. The Change of Ownership/Administration form must be given to all tenants who occupy your rental property before a change of ownership and/or administration takes place. This note is an editable form so that you can add a language or additional information for your situation. This notice will help clarify the changes and provide convenience to the remaining tenants. This notice will help guide tenants through the change process and reassure them that the lease will remain the same. This form does not serve as a transfer of ownership between the parties. When buying a property, especially a residential or commercial property, always check if the previous owner has entered into a lease for the property and if the property has been handed over to the tenant. If the property is rented, be sure to check the lease. If you are buying an investment property to rent in the future, make sure the rent meets your expectations.
Also look at other terms of the lease, for example. B the duration of the lease – for example, a lease of a certain number of years may not be appropriate given the growth of the rental market. If the terms of your fixed-term lease do not suit you and you. B do not need an apartment for your own residence, for example, ask the seller of the apartment to enter into a new contract with the tenant that meets your requirements. If it does not succeed, it may be advisable to try the next apartment looking for a purchase. I have seen this situation in residential and commercial contexts. A commercial tenant contacted me about some of the landlord`s tenant`s questions and then decided to take care of the matter himself. I heard from her again about a month later and she had some problems with the new lease. The property manager did not return her calls and had not paid rent for the first month under the new lease. She wanted to solve her problems with the new lease before paying the rent. As I delved deeper, I learned for the first time that she had signed an agreement that terminated her old lease and waived all claims against the new owner: the tenant had a $1200 deposit with the previous owner and wanted a settlement from the new owner. I read the above provision in the lease and told her that she had waived any claim for the deposit against her new landlord when she signed this agreement.
By the way, I also told him that just because the building has been sold does not mean that you have to sign a new lease with the new owner. The new owner usually occupies the premises subject to existing leases. Thus, if the tenant still has several months left with an old lease, the new owner must comply with the old lease, the monthly rental price, the deposit and all the other conditions of the initial lease. Once the property has been transferred to the tenant, the landlord`s rights and obligations under the lease under the Law of Obligations Act pass to the new owner of the property. This means, for example, that if you have moved into a rented apartment as a tenant, the apartment is in your possession and the lease is automatically transferred to the new owner. If the new landlord wants to make a new lease with you after buying the apartment, there is really no need to do so. Such a topic may be on the agenda, for example, if the new owner wants to change the terms of the contract for you – for example. B, to increase the rent..
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