Termination after Repeatedly Paying Late

The BGH (re VIII ZR 364/04) has eased the rules for terminating a rental agreement extraordinarily where the tenant habitually pays late. A landlord can serve notice of extraordinary termination of the contract if the tenant after an admonishment repeatedly starts paying unpunctually again.

In the case at issue, the tenant had to pay the monthly rent in advance by the third day of every month – as is the custom. Over a three year period, the tenant always paid late, sometimes during the running month, sometimes during the subsequent month. The landlord admonished his renter and threatened to terminate the contract if he were to maintain paying late. After another two years, the tenant again started paying late. The landlord again admonished him. Thereafter the tenant continued to pay behind time, so the landlord terminated the rental contract on extraordinarily grounds and sued the tenant for past payment and to vacate the premises.

Published on the old CMS: 2007/3/7
Read on the old CMS till November 2008: 1,427 reads