Real Estate Insider

The CERHA HEMPEL Real Estate Insider provides an insight to the real estate industry in Austria and CEE. Besides reviews on case-law and legal developments, the Real Estate Insider covers all aspects affecting the industry including market trends and insights, project and deal reviews, reviews on political and legislative developments, reports on events etc. As one of the leading real estate practices in Austria and CEE, our team is fluent in advising clients on all aspects of real estate law from cross border portfolio transactions to building organizer projects to rental agreements and constructions matters, you name it.

Brokerage Fee Reloaded – Supreme Court: No Claim Despite Mediation!

The decision of the Austrian Supreme Court (OGH) with reference number 4 Ob 182/23b from April 26, 2024, is causing a stir in the real estate broker industry. In this blog post, we will examine the background and the far-reaching consequences of this ruling.

The Decision of the Vienna Higher Regional Court on the Insolvency of SIGNA Prime Selection AG: An Analysis

The decision of the Vienna Higher Regional Court on the appeal by the Republic of Austria against the confirmation of the restructuring plan of SIGNA Prime Selection AG was eagerly awaited. Now it is here, and today I will analyze the decision for you.

The Amendment of the Landregister 2024 – Data Protection Enters the Land Register

With the planned Amendment of the Landregister 2024, data protection is now making its way into the land register. The European Court of Human Rights ruled on April 6, 2021, that Austria had violated the right to respect for private and family life because the land register failed to balance the right to respect for the complainant's private and family life with the purposes of public access to the land register when publishing a divorce settlement in the document collection. This decision has far-reaching consequences for the publication of documents in the land register.

Relevance of duties of disclosure in real estate transactions

The recent decision of the German Federal Court of Justice (Bundesgerichtshof) of 15 September 2023 (in case V ZR 77/22) on the pre-contractual duty of sellers to disclose information in real estate transactions is making waves not only in Germany, but also across the border in Austria.

Environmental Liability in Asset Deals under Czech Law

In practice, the economic benefits of a transaction often outweigh the environmental impacts. In doing so, the environmental liability of one of the contracting parties can have a very negative impact on the economic benefits of the transaction.

Bulgaria: Higher minimum energy requirements for buildings

Directive 2010/31/EU on the energy performance of buildings (the "Directive") obliges Member States to review the energy performance standards for buildings at intervals of no more than five years and, if necessary, update them to reflect the technical progress made in the building sector. Bulgaria is lagging behind its obligation to meet the energy goals set out in the Directive. To remedy this, a new Ordinance on the technical requirements for the energy performance of buildings (the "Ordinance") entered into force in November 2022, prescribing higher energy standards for buildings.

Hungary: A Stop to Office and Home Construction?

Buildings with a total useful area of more than 5,000 sqm and apartment buildings located on a single building plot with at least six apartments and a total useful area of more than 1,500 sqm will not receive a preliminary or final building permit in procedures started after 16 August 2022 if the National Architectural Planning Council has not recommended that permission be granted on the basis of the relevant architectural and technical documentation.

Bulgaria: New provision allowing price indexation in public procurement contracts

On 5 August 2022, an amendment to the Bulgarian Public Procurement Act (“PPA”) came into force, allowing for price indexation of public procurement contracts in the event of inflation. The amendment aims to address the effects of industrial inflation caused by the COVID-19 pandemic and amplified by the war in Ukraine. Although the new provision applies to public procurement contracts in all industries, the need for price indexation is most pressing in relation to construction contracts.

Corona Crisis: Differing legal treatment of lease and rent is constitutional

In the decision G 279/2021-15, the Austrian Constitutional Court ("VfGH") had to deal with the question whether lessees of enterprises as well as tenants of business premises would have to pay only a reduced rent for the period of limited usability of the business premises due to Covid-19 lockdowns.

Green lease agreements in the context of the Taxonomy Regulation

The European Green Deal plan was adopted by the European Commission in December 2019 as an ambitious package of measures, ranging from reducing greenhouse gas emissions to investing in cutting-edge research and innovation, and conserving Europe's natural environment. Based on this, the European Commission has adopted three regulations that form the framework for the implementation of environmental, social and governance criteria, one of which is Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (the "Taxonomy Regulation"), which provides that only those economic activities that significantly contribute to the achievement of environmental objectives are "green".