Rent control 2026: New regulations for rent adjustments based on value guarantee clauses
In his article, Dr. Volker Mogel, LL.M., discusses the regulations that came into force on January 1, 2026, governing rent adjustments based on value guarantee clauses.
Effects of estate insolvency on probate proceedings
In his article, Martin Nuncic discusses a ruling by the Austrian Supreme Court dated October 23, 2025, which addresses key issues relating to the continuation of probate proceedings in the event of insolvency proceedings being opened against the estate's assets.
Objection regarding the lack of due date for payment of the contract price in the event of defects
In his article, Dr. Volker Mogel discusses a ruling by the Austrian Supreme Court (OGH) dated June 24, 2025, in which it was decided that a customer may withhold payment for work even if warranty claims are already time-barred. In the specific case, the plaintiff's terrace renovation had several defects—a missing emergency overflow, improper foaming of the borehole, and a drain that did not comply with standards. The Supreme Court held that the defendant was entitled to a claim for improvement despite the expiry of the limitation period and was therefore entitled to withhold payment for the work. The claim for payment for the work was therefore dismissed.
Acquisition in good faith breaks monument protection
In her article, Silvija Railic analyzes a ruling by the Austrian Supreme Court (OGH) dated April 2, 2025, which concerned the acquisition of ownership of listed paintings. The plaintiff, the owner of a castle, demanded the return of two paintings that the defendant had purchased in good faith from an antique dealer in 2017. While the lower courts upheld the claim, the Supreme Court ruled that the defendant was entitled to ownership. A contrary decision would have contradicted established case law, according to which even stolen or robbed works of art can be acquired in good faith in a gallery.
No obligation to pay leasing installments in the event of vehicle breakdown
In her article, Melanie Schuster comments on a ruling by the Austrian Supreme Court (OGH) dated April 11, 2025, which clarified that leasing payments are not eligible for reimbursement as “frustrated costs” in the event of loss of use of the vehicle. In the case in question, the plaintiff sought compensation for leasing payments that continued to be paid during repairs. The Supreme Court denied the claim and clarified that damages for loss of use, such as rental costs for a replacement vehicle, loss of earnings, and ongoing costs such as taxes, insurance, or garage costs, are eligible for compensation—but not leasing payments, as these do not fall under frustrated costs due to their purchase price nature.
Termination of the lease agreement in the event of water damage caused by the tenant
In his article, Stephan Bertuch discusses the ruling of the Austrian Supreme Court (OGH) of March 28, 2025, in which repeated water damage was classified as significantly detrimental use of the rental property. Despite being aware of the problems, a tenant had caused water damage on several occasions and refused to carry out the necessary repairs. The Supreme Court clarified that the risk of damage to the property is sufficient to justify termination of the tenancy agreement. The decisive factor is the loss of trust due to repeated breach of contract, not the extent of damage already incurred.
Right to information and duty of loyalty: Implications of the Supreme Court decision 6 Ob 65/24p
In his article, Gregor Grablotwitz comments on a ruling by the Austrian Supreme Court (6 Ob 65/24p) that specifies the scope of the right to information of shareholders in limited liability companies and the duty of loyalty. The Supreme Court clarified that the right to information can also extend to affiliated companies if the information is relevant to a decision. At the same time, it emphasized that the shareholder must specify the requested information in detail and demonstrate a legitimate interest. The decision clarifies the functional interpretation of the right to information and highlights the limits of the duty of loyalty in corporate structures.
The dissolution of a limited liability company
In his article, Philipp Casper discusses the ruling of the Austrian Supreme Court (OGH) of June 4, 2025 (6 Ob 170/24d), which dealt with the issue of an action for dissolution of a limited liability company (GmbH). The OGH clarified that, unlike in Germany, such an action is not provided for in Austria, thereby confirming previous case law. It is noteworthy, however, that the Supreme Court hinted at a possible way out: under certain circumstances, an action for the consent of the co-partner to the dissolution of the limited liability company could be conceivable. The decision underscores the importance of termination rights under the articles of association in order to prevent stalemate situations between partners.
Tenancy agreement or family law residential arrangement?
In his LEXIKON article, Stephan Bertuch explains a decision by the Austrian Supreme Court (OGH) dated April 8, 2020, which dealt with the question of whether a rental agreement or a family law residential arrangement existed between a son and his mother. The son claimed to have entered into a rental agreement in which work services were agreed upon as consideration instead of rent. However, the Supreme Court found that in this case there was no rental agreement for consideration, but rather a family law residential arrangement that could be revoked at any time. The court emphasized that such residential arrangements are not legally enforceable and rather result from the natural sense of belonging among family members.
No negative interest rates on loans
In his LEXIKON article, Georg Wielinger explains a decision by the Austrian Supreme Court (OGH) dated February 26, 2020 (1 Ob 16/20i) concerning the question of whether banks must pay their customers “negative interest” if the reference interest rate of a variable loan agreement, such as the EURIBOR, falls so sharply that the interest rate would theoretically become negative. The Supreme Court clarified that this is not the case without an express contractual provision. The court justified its decision on the grounds that in a loan agreement in which the bank usually receives interest from the customer, it cannot be assumed that the parties have agreed on such a provision at the expense of the bank.
Luggage gone – contributory negligence on the part of the passenger
In his article, Martin Nuncic comments on a ruling by the Austrian Supreme Court (OGH) dated April 24, 2020, in which it was decided that Flixbus is liable for the loss of luggage, but that the passenger is also partly to blame. The passenger had not attached a luggage tag to his suitcase and failed to ask the driver for a tag. The Supreme Court ruled that Flixbus only had to reimburse two-thirds of the damage, as the passenger contributed to the loss through his carelessness. The ruling underscores the importance of properly labeling luggage when traveling by bus and recommends taking a photo as evidence in case of a dispute.
Violation of the duty to warn in tenders
In his LEXIKON article, Dr. Volker Mogel explains a decision by the Austrian Supreme Court (OGH) dated February 19, 2020, which deals with the pre-contractual inspection and warning obligations of bidders in tendering procedures. The case concerned claims for additional costs due to material defects that were only discovered after construction had begun. The Supreme Court ruled that bidders must identify and point out defects in the tender documents in order to avoid a breach of the duty to warn pursuant to Section 1168a of the Austrian Civil Code (ABGB). This decision clarifies that bidders must carefully review the documents before concluding a contract and report any recognizable errors in order to prevent unfair competitive advantages and unjustified additional claims. It underscores the responsibility of bidders to review the tender in its entirety and ensure a transparent, fair bidding process.
Loss of remuneration for work performed due to breach of the duty to warn
In this LEXIKON article, Dr. Volker Mogel discusses the decision of the Austrian Supreme Court (OGH) of January 21, 2025. This decision clarifies the contractor's duty to warn under Austrian contract law. A civil engineering company failed to inform the plaintiff about the inadequate pipe dimensions, which led to flooding. The article highlights the legal consequences and liability risks for contractors, including the possible loss of remuneration for work performed if the duty to warn is disregarded.
Duty of care
In this LEXIKON article, Melanie Schuster discusses the decision of the Austrian Supreme Court (OGH) of December 14, 2023, on general traffic safety obligations. The focus is on a case in which the plaintiff tripped over a chain that had been stretched across a path to prevent passersby from entering a meadow area. The Supreme Court clarified that the scope of traffic safety obligations must always be determined on a case-by-case basis and depends on how recognizable and avoidable the dangers are. In this case, the property owner was not held liable because the danger was recognizable to the plaintiff with normal attention.
Unacceptable clause in property development contracts
In this LEXIKON article, Mag. Martin Nuncic discusses the admissibility of arbitration agreements in property development contracts. The Supreme Court dealt with the question of whether an arbitration clause between a property developer and a consumer can be validly agreed. In the underlying case, the apartment owners sued for defects in the building and demanded improvement costs and a price reduction. The Supreme Court ruled that such a clause is inadmissible because it unreasonably restricts the procedural rights of consumers to participate in the proceedings. The article explains the background to this decision and its implications for practice in property development law.
On the boundary distance of underground garage ramps in the building permit process
In this LEXIKON article, Stephan Bertuch describes a building permit procedure relating to distance regulations in the Styrian Building Act. The case concerned an underground parking ramp that was to be built as a projection of the underground parking level between a planned building and the neighboring property line. The Supreme Court had to clarify whether and which distance regulations of the Styrian Building Act were applicable to the ramp. During the proceedings, it emerged that the ramp did not constitute a countable floor, which, according to the provisions of the Building Act, possibly rendered the boundary distance obsolete. The article highlights the legal issues surrounding building and boundary distances and explains the significance of this decision for future construction projects.
Warranty and damages in private sales in insolvency: An overview
In this LEXIKON article, Georg Wielinger explains the decision of the Austrian Supreme Court (OGH), 8 Ob 130/23k, on warranty law in the case of private sales of real estate in insolvency proceedings. The Supreme Court ruled that the warranty exclusion in the purchase agreement does not automatically apply if damage occurs after the appraisal. The general law on breach of contract under the Austrian Civil Code (ABGB) remains applicable, and warranty claims can be treated as special claims.
Equal treatment of creditors in the restructuring plan
Mag. Philipp Casper explains the basics of the restructuring plan under Austrian insolvency law. The article explains how debtors can reduce their liabilities through a restructuring plan with residual debt discharge. The restructuring plan must benefit all creditors equally, and a double majority of creditors is required to approve the plan. The article also addresses the issue of inadmissible special favors, whereby individual creditors receive more favorable treatment. The feasibility of the plan must also be ensured.
The new rent cap
In his LEXIKON article, Stephan Bertuch discusses the Third Inflation Relief Act (3. MILG) and the introduction of a rent cap. The new provisions limit inflation adjustments for tenancies with legally capped rents, particularly for category amounts, benchmark values, and non-profit housing. A cap of 5% is being introduced for rent adjustments, and from 2027 onwards, adjustments will be based on the average inflation rate of the previous three years. The article explains the implications for tenants and landlords and the ongoing discussion about constitutionality.
Impact of the COVID-19 pandemic on contracts
This article by Stephan Bertuch examines the impact of the COVID-19 pandemic on various contracts, such as purchase, supply, and service contracts. In particular, it explains the concept of “force majeure” and how the pandemic affects subsequent impossibility of performance and default interest. In addition, the article discusses the legal changes brought about by the 2nd COVID-19 Justice Accompanying Act, which concern liability for delays and contractual penalties, and explains the effects on contractors and contractual partners in the context of the crisis.
Extension of the deadline for filing for insolvency – help and/or liability trap?
This article by Georg Wielinger explains the obligation of managing directors of limited liability companies (GmbHs) to file for insolvency in the context of the COVID-19 pandemic. The Second COVID-19 Act (BGBl I 16/2020) extends the deadline for filing for insolvency proceedings under certain conditions. The article clarifies what this means for managing directors and how they can avoid liability by taking the right restructuring measures and meeting the deadline.
COVID-19 and rent exemption or reduction
In his article, Dr. Volker Mogel explains the legal basis for rent exemptions and reductions for commercial tenants due to the coronavirus crisis. He discusses the application of Sections 1104 and 1105 of the Austrian Civil Code (ABGB) and the legal questions still open regarding liability and contract drafting.
Significance of COVID-19 for residential tenancies
Mag. Gregor Grablowitz explains the effects of the 2nd COVID-19 Justice Accompanying Act on landlords. Topics such as rent defaults, termination bans, and postponement of evictions are discussed in detail.
Recourse of the contractor against the building inspectorate
In his article, Dr. Volker Mogel discusses the decision of the Austrian Supreme Court (OGH) of November 18, 2019 (8 Ob 88/19b). This decision clarifies the question of whether a contractor can assert recourse claims against the local building inspectorate (ÖBA). It analyzes the liability of the building inspectorate in the event of inadequate supervision and joint and several liability in the event of recourse. The article highlights the limits of responsibility and the legal requirements for successful recourse by the contractor.
Corporate law rights of seizure in insolvency
This article by Georg Wielinger explains the decision of the Higher Regional Court of Linz of August 27, 2019 (6 R 95/19m) on the effectiveness of corporate law rights of seizure in the event of a shareholder's insolvency. The court ruled that the Insolvency Code precludes a provision that binds the insolvency administrator to the right of seizure. The article analyzes the consequences of this decision and its impact on the realization of shares in insolvency proceedings.
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