Higher Administrative Court strengthens tenant protection through valid turnover agreements

Higher Administrative Court strengthens tenant protection through valid turnover agreements

Friedrichshain-Kreuzberg, Deutschland - On June 26, 2025, the Higher Administrative Court (OVG) Berlin-Brandenburg confirmed the effectiveness of turnover agreements. These decisions only affect the repression of accumulated residents in the social conservation areas of Friedrichshain-Kreuzberg. In judgments of June 24, 2025, appeals against five decisions of the Berlin Administrative Court of May 9, 2023 were rejected. This is regarded as a crucial step to protect tenants in Berlin and to proceed against increasing speculation in the real estate market. The turnover agreements are public contracts that meet the requirements of a comparison contract and are therefore not easy to declare.

The plaintiffs had argued that they were exchange contracts with inadmissible consideration. But the OVG did not shared this view. Rather, it was found that turnover agreements, which were concluded by many Berlin districts with real estate buyers, to prevent displacement by comprehensive modernizations. There are currently turning agreements in the district for a total of 79 plots of land with 1997 residential units, which illustrates the scope of this regulation.

securing the living space

Florian Schmidt, district councilor of Friedrichshain-Kreuzberg, welcomes the judgment and describes it as positive news for the tenants. He emphasizes that it is now necessary to improve the ability of the Senate and the state -owned housing associations to exercise the right of first refusal. The right of first refusal enables the districts to secure land in social conservation areas before selling to third parties and thus protect the traditional residents.

A critical aspect of the current situation is that some turnover agreements have been unilaterally terminated by real estate buyers. However, the OVG has made it clear that these agreements remain effective and cannot be canceled easily. These decisions are based on the determination that the exercise of the right of first refusal is justified by the well -being of the general public. The fears of preserving developments in the occupied areas are taken seriously, especially in the face of rising rental prices.

regulations in milieu protection

The right of first refusal is of considerable importance in milieu protection areas as part of the conversion regulation. Between 2015 and 2020, Friedrichshain-Kreuzberg used the right of first refusal. This shows the ongoing political will to secure the social living space in urban areas. However, it also becomes clear that not all districts have the same resources and strategies to effectively implement these measures. Districts such as Charlottenburg-Wilmersdorf have only sporadically examined the right of first refusal in recent years, which indicates a lack of political will or organizational deficits.

The information about turnover agreements and their results have so far not been publicly visible, which led to an increased need for information among tenants. Initiatives such as "Ask the state" require more transparency and insight into these agreements. Tenants should be informed comprehensively about their legal options and the provisions in their rental contracts in order to protect them from possible repressed by real estate buyers.