With its decision of 13 August 2025 (6 Ob 162/24b), the Austrian Supreme Court has provided important guidance on tenancy law. The focus lies on the extent to which operating costs can be passed on to tenants under the partial application of the Tenancy Act (MRG) – and where the legal limits of such clauses lie.
A joint venture is created when two or more independent companies establish a special purpose vehicle to pursue a specific project together. The classic fifty fifty structure gives each partner half the shares and a veto right on all material decisions. While this prevents unilateral action, it also raises the risk that entrenched positions will lead to a standstill.
On July 30, 2025, the Austrian Supreme Court (OGH), in case number 10 Ob 15/25s, issued a surprising and far-reaching decision regarding the applicability of § 6 para 2 no 4 of the Austrian Consumer Protection Act (KSchG) to long-term lease agreements.
In its ruling 1 Ob 62/25m of 27 May 2025, the Austrian Supreme Court addressed the validity of a Tyrolean land purchase contract that was accompanied by a concealed trust in favour of a Ukrainian third country national. The decision clarifies when a contract stands and when it constitutes an unlawful circumvention of § 12 para 1 lit a TirGVG.
With its new energy performance of buildings directive, the European Union is taking a decisive step towards a climate-neutral building stock. The directive on the overall energy performance of buildings, adopted on 24 April 2024, replaces the previous version from 2010 and must be transposed into national law by 24 April 2026.
The right of first refusal is a key legal instrument in real estate contracts, whose significance and complexity are often underestimated. It grants a specific person—the beneficiary—the right to purchase a property under the same conditions offered to a third party. Its purpose is to protect the beneficiary from an unwanted change of ownership and to allow them to "step into" the transaction.
On April 2, 2025, the Austrian Supreme Court (OGH) ruled in case 5 Ob 166/24h, providing essential clarification for real estate law practice. The key issue was when a value adjustment clause in a rental agreement is valid and how far the court’s competence extends in rent review proceedings.
The real estate transfer tax has always been an integral part of property transactions in Austria. In addition to classic asset deals, share deals – the acquisition of company shares – have also been subject to tax under certain conditions. With the 2025 Budget Accompanying Act, however, a major shift is underway, particularly affecting share deals.
The following scenario is representative of many similar cases in Vienna: An underground garage in a residential building features several parking spaces and more than fifty square meters of usable space. Along the parking spots, either open shelves or lockable steel cabinets are installed. These are used to permanently store tools, sports equipment, children’s toys, or board games – typical household items that are not used daily but should remain easily accessible.
In its recent decision of March 16, 2025 (OGH 5 Ob 219/24b), the Austrian Supreme Court clarified that not every action by individual condominium owners qualifies as a resolution of the homeowners’ association. The key question is whether a collective decision was made or merely a private arrangement took place.