New legal regulation for tenancies in the SARS-CoV-2 pandemic

On 17.12.2020, the Bundestag passed the "Act to further shorten residual debt discharge proceedings and to amend pandemic-related provisions in company, cooperative, association and foundation law as well as in tenancy and leasehold law". The Federal Council already approved the law on 18.12.2020. The legislator has thus responded to the effects of the SARS-CoV-2 pandemic and the regulations issued by the federal states to combat it and extended the application of the regulations on the so-called cessation of the basis of the transaction.

According to the adopted bill, Art. 240 of the Introductory Act to the German Civil Code (EGBGB) will be supplemented by a new § 7:

Article 10

Amendment of the Introductory Act to the Civil Code
The following Section 7 is added to Article 240 of the Introductory Act to the German Civil Code in the version published on September 21, 1994 (BGBl. I p. 2494; 1997 I p. 1061), which was last amended by Article 1 of the Act of July 10, 2020 (BGBl. I p. 1643, 1870):

§ 7
Disruption of the business basis of rental and lease agreements
(1) If, as a result of government measures to combat the COVID-19 pandemic, rented land or rented premises that are not residential premises cannot be used for the tenant's business or can only be used with considerable restrictions, it shall be assumed that a circumstance within the meaning of Section 313 (1) of the German Civil Code, which has become the basis of the rental agreement, has changed seriously after the conclusion of the agreement.br> (2) Paragraph 1 shall apply accordingly to leases."

In addition, a priority and acceleration requirement was introduced in the Introductory Act to the Code of Civil Procedure (EGZPO) in Section 44: Proceedings concerning the adjustment of rent or lease for land or premises that are not residential premises due to government measures to combat the COVID-19 pandemic are to be given priority and expedited. In these proceedings, an early first hearing is to take place no later than one month after service of the statement of claim.

The law is to enter into force on 31.12.2020. You can find the full text here.

Date: 29. Dec 2020