Berlin Aspire and Berlin Estate ++ Condominiums in Berlin
Berlin Aspire and Berlin Estate have sold rented Condominiums in sociologically difficult quarters in Berlin mainly to Israeli investors. The prices for these condos seem way too high. They seem to be based on rents that are above average rents and they are rented in a legally disputed way to tourists.
Berlin Aspire: Do the Israeli investors know the Berlin real estate market?
nor that are familiar with rules of the German real estate laws. It could be just the opposite. The investor do not know the risks. They gullibly bet on the hype of the Berlin real estate market.
Who are Berlin Aspire and Berlin Estate?
Berlin Aspire and Berlin Estate are two Berlin based real state Enterprises with links to Israel. Both enterprises are said to under the influence of by real estate investor Adi Keizman. The condos are sold mainly in Israel as the website promises that the clients of Berlin Aspire are “provided with peace of mind and confidence in their investment the most rapidly developing and promising city in Europe”.
Berlin Aspire: Do the investor understand the complex legal problems?
Looking at their legal problems one might suspect that Berlin Aspire and Berlin Estate mislead the Israeli investors who do not recognize the complex legal consequences intertwined in the Israeli and German law. As we know Berlin Aspire and Berlin Estate have sold the condo based on contracts made in Israel. It is very well probable they are not applicable under German law.
Berlin Aspire: Investors taking risks
Although these contracts are presumably not valid under German law, investors have already made an advanced payment. In one case the condo didn´t even legally exist under German law. Nevertheless the Israelis investors had already paid part of a price without having any legal security to become the owner of this condominium.
Berlin Aspire: The legal rights of the investors are curtailed
It seems obvious that the legal rights of the buyers of Berlin Aspire and Berlin Estate are restricted under the regulations of the contract. Do the investors really know, that there condominiums are rented and that these contracts generally not be terminated?
Berlin Aspire: Do the investors know the rights of the tenants?
And do the Investors keep in mind that under German law the tenants have are very strong legal position. Furthermore the rise of the rent is restricted by the so called “Mietpreisbremse” (rental brake). The rents can only be elevated within a certain margin.
Berlin Aspire: Do investors violate the law?
To make sure that these margins are not violated, the state of Berlin has made a special regulation, called the “Zweckentfremdungsverordnung”. To evade this regulation the investors try to offer there condos to Berlin tourists as a short time rent so they can achieve higher rents. Those investors who rent their condos to tourists must know, that they face a fine up to € 100.000,00.
Berlin Aspire: Recommendation for investors
- All this said make sure they are well informed about all the aspects to buy a condo in Berlin.
- Make sure a German lawyer has validated your contract.
- Make sure you know the Berlin Real Estate Market
- Compare the price and the location where to buy
- Make sure you know if your condo is rented
- Make sure you know the contract
- Make sure that your advanced payments are on the account of a German notary until your condo is officially registered.
Resch Law – Investor Protection since 1986
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