Supreme Court finds hidden-defect clauses in lease agreements valid

Immobilien & Baurecht

ILO Newsletter 6. September 2013

The Supreme Court recently ruled that under the terms of a lease agreement between a tenant and its landlord, the landlord was obliged solely to hand over the property in the condition as at the conclusion of the contract. Any necessary repairs for both existing and subsequently occurring defects were shifted effectively and validly to the tenant. As this also comprised hidden defects, any repairs were the tenant´s responsibility.


Dr. Martin Foerster

LL.M. (LONDON) Partner