No Limitation Period for Maintenance Obligation of the Heritable Building Right Holder: Current Jurisprudence and Its Implications
The question of the limitation period for the claim to maintain a property by the heritable building right holder has gained a new facet with a recent decision (BGH, Judgment of January 31, 2025 – V ZR 21/24). The decision of the Federal Court of Justice addresses a topic that is not only significant in the practice of large real estate portfolios but also concerning long-term usage rights. At the same time, the judgment strengthens the position of the landowner within the framework of the heritable building right relationship.
Basics of Heritable Building Rights and Their Maintenance Obligation
The heritable building right grants the entitled party the real right to construct or maintain a structure on or below the surface of another’s property. This right is regularly framed by contractual agreements. A central regulatory content is the obligation of the heritable building right holder to properly maintain and manage the heritable building right property and the structures erected on it during the term of the heritable building right. The purpose of this obligation is to prevent the property and the structure from depreciating in value due to poor maintenance during the term of the heritable building right. Nevertheless, in practice, the question often arises as to the extent to which the landowner can assert a breach of these maintenance obligations and how he can successfully proceed against neglect.
Statute of Limitations for Maintenance Claims: Initial Situation and Problem Definition
The central question in the decided case was whether and when claims by the landowner against the heritable building right holder for restoration of the contractual condition – particularly for structural maintenance and rectification of deficiencies – are subject to the statute of limitations. While contractual claims under the law of obligations are generally subject to a statute of limitations, the specific nature of long-term obligations and, particularly with heritable building rights, the specific characteristics of the legal relationship and the granted usage period must be considered. Heritable building rights relationships are typically designed for several decades, so the preservation of value is in the interest of both the heritable building right holder and the landowner.
The Decision of the Federal Court of Justice
The Federal Court of Justice clarified in the judgment of January 31, 2025, that claims of the landowner for the fulfillment of maintenance obligations from a heritable building right contract do not become statute-barred during the term of the heritable building right. The court emphasized that maintenance obligation is a continuous duty, the violation of which does not consist of a single act but a continued breach. A statute of limitations in such continuous relationships would mean that after the expiration of the limitation period for individual breaches, the original condition could no longer be demanded – with the result that serious damage to the structure or property could persist indefinitely.
The meaning and purpose of the maintenance obligation—the preservation of the property’s and any structures’ value for the owner after the expiration of the heritable building right—would be undermined by a statute of limitations. Therefore, the limitation period for claims to restore the proper condition begins only with the end of the heritable building right. Until this time, the landowner retains his right to demand proper maintenance from the heritable building right holder.
Legal Classification and Implications for Practice
Protection Mechanism for the Landowner
The decision sustainably strengthens the interests of the landowner. It ensures that the owner can rely on getting back the property and the structure in the agreed and value-preserved condition until the expiration of the heritable building right contract. This is particularly relevant when the contractually agreed return obligation becomes applicable at the end of the term – any destruction or depreciation due to neglected maintenance would otherwise have irreversible disadvantages for the owner.
Impact on Contract Design and Disputes
For the design of heritable building right contracts and the management of corresponding rights, there is a need to precisely regulate maintenance obligations and continuously monitor their fulfillment. In potential disputes, the position of the landowner is strengthened in that he can insist on rectification of breaches even after a long time once the non-compliance is established. At the same time, it is emphasized that ongoing care and control are also in the interest of the heritable building right holder to avoid potential later disputes.
No Forfeiture of the Claim with Knowledge and Toleration
It is complementary to note that even prolonged toleration of breaches does not necessarily lead to forfeiture of the claim. Forfeiture can only occur under narrow conditions, particularly if the landowner waives his right or behaves contradictorily. As a rule, the claim to maintenance remains until the end of the heritable building right.
Implications for the Real Estate Industry, Investors, and Institutions
The BGH decision has significant relevance for real estate investors, housing associations, foundations, and other institutions that grant or acquire property through heritable building rights. Long-term security interests come to the forefront more strongly, which can affect both contract design and risk management. This jurisprudence is also of considerable importance for potential legal successors—such as in the event of a transfer of the heritable building right—as it clarifies proof and monitoring obligations and creates reliable framework conditions.
Conclusion
With its decision, the Federal Court of Justice sets an important accent in the area of heritable building rights by sustainably protecting the maintenance obligations of the heritable building right holder and securing the rights of the landowner in the long term. The clarification regarding the absence of a statute of limitations during the contract term provides security for all parties and ensures balanced interest preservation in the management of heritable building rights agreements.
For questions regarding the design, control, and enforcement of maintenance obligations in heritable building rights, the attorneys at MTR Legal are available as reliable partners with many years of experience in real estate and contract law.
