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Berlin - 10 Year Rental Contracts


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Since my last contribution to this thread nearly a month has passed and this is what has happened:
  1. I have received reduced rent of 240E from K in July.

  2. OS informed me that the actual rent Dr O received was 304E per month.

  3. OS informed me that the rent bond now stood at 3700E approx.

  4. OS informed me that Alli would not repay the rent bond as it was a guarantee against me not supporting the mortgage now that the rent was 150E less than my monthly mortgage.

  5. I have identified that I bought a silver mortgage membership with CFP and they do not have any POA.

  6. CFP recommended an Irish company to file a tax return and they have had their calculation accepted by the Germans. This company have been fairly efficient, if expensive.

  7. I have discovered that Alli gave a golden hello of 75E to me and deposited this into a sub account.

  8. For the time being I decided not to go with OS new management company, which would provide translation and accountancy services.

  9. Have successfully written a letter in German and managed to close the sub account with 75E in it and transfer the money to my main mortgage account.

  10. I have transferred 750E to my mortgage account. If K keeps on paying rent at current levels this should keep my mortgage account propped up until Jan/Feb 10.

  11. Yesterday I received a letter from my solicitor Ule touting for business. They want to go after the rent bond. I just dont see Alli - see italics comment above - paying up.

One final thing. We, and that includes me, are all guilty of not doing due diligence. MRI made it easy. I never even saw inside my flat. They drove me to the solicitor, notary etc. What I should have done was spend another day in Berlin looking at rents in Rubenstrasse before making the decision. If I had spent time identifying rents to be approx 300E per month and Dr O was paying 370E per month I would have backed off the deal.

But as the saying goes, a degree in hindsight is not of much use.

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Hi all,

We have just found this forum and are hoping it’s still active so we may receive some advice on what to do.

We are based in the RoI and are in the same situation as most of you re Dr.O and reduced monthly instalments.

We received a quote in the post from a German Lawyer for €950.00 to look into the matter on our behalf, we feel this is very expensive and are unsure whether this is our only option at this stage.

We received an email from O.S today regarding the release of the cash guarantee and hence the termination of the rental guarantee contract. Ha attached a letter from the head of Alli Mortgage department confirming that Dr.O´s suggested procedure to release the cash bond has been approved by them.

The letter reads as follows:

Dear Alli client,

The letter from D. O with a proposal to abstain from the rental guarantee in order to release the rental guarantee and to use the released funds as an early redemption for your mortgage with Alli is approved and accepted by us. There will not be any costs for you.

With this procedure we would like to achieve that in view of a possible insolvency of the D. O the deposited funds -which have been pre-financed over the purchase price- will get back to you in kind of a reduction of the mortgage amount. You have the advantage that the value of the deposited amounts will bring you a direct economical benefit through the reduced mortgage amount.

For future maintenance of interest and rental payments it could be helpful if you chose a current account which allows your service agency to monitor the bank account.

With kind regards,

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we too have been caught up in this. based in London. Anyone else in London?

Hi there,

We're based in London and are in same mess as you guys so would be most interested to join in any discussion group as to what to do now. We too got the letter from O explaining the termination of the rental guarantee contract. Had signed the POA with P Solar but quite frankly not heard anything as such on what legal advice they're recommending to us.

So what's everyone's take on the situation now? Are you all looking for new managing agents or thinking of selling?

K

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Has anyone signed PoA to Pablo Solar? Have they been effective in acting on your behalf and would you recommend we take this course too?

E952.00 is a massive amount of money to us right now.

Has anyone received legal advice on this?

Would it be a huge mistake to sign the cancellation of rental guarantee wit Dr.Ochel?

Any advice would be so appreciated.

Pippy - Co. Laois

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Has anyone signed PoA to Pablo Solar? Have they been effective in acting on your behalf and would you recommend we take this course too?

E952.00 is a massive amount of money to us right now.

Has anyone received legal advice on this?

Would it be a huge mistake to sign the cancellation of rental guarantee wit Dr.Ochel?

Any advice would be so appreciated.

Pippy - Co. Laois

Pippy

We have received another quote from a differnt solicitor in Berlin - a lot cheaper than Pablo. Not sure what we will do yet

Belfast 72

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Pippy

We have received another quote from a differnt solicitor in Berlin - a lot cheaper than Pablo. Not sure what we will do yet

Belfast 72

Thanks Belfast72,

How much are they quoting? Let me know what you decide, also if you have another meeting we'd like to join you, feel better already having found this site.

Pippy

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Has anyone signed PoA to Pablo Solar? Have they been effective in acting on your behalf and would you recommend we take this course too?

E952.00 is a massive amount of money to us right now.

Has anyone received legal advice on this?

Would it be a huge mistake to sign the cancellation of rental guarantee wit Dr.Ochel?

Any advice would be so appreciated.

Pippy - Co. Laois

Of cos I would love to sign POA with PS but they are charging E600.00 more than other solicitor .

PS helped me with the purchase of the berlin ppt , i find them reliable but very ineffective

Jus received a legal agreement from PS , I was very disappointed as it was lack of information and direction as compare BK

HAS anyone used BK

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Thank goodness for this site

We too have a 10 year deal with Dr Ochel which we finanaced at home rather than through CFP. We are currently missing both June and Julys rent. We have been asked to give permission for the guarantee to be released to help make up the shortfall initially between the actual rent and what we have been receiving. We were about to do that but could not find any documentation to do with this. We sent an email to Dr Ochel and cc'd in the solicitor who handled our conveyancing and the Notar. This was 2 weeks ago and we only got a reply from the solicitor asking us to give him POA to act on our behalf. We emailed him today to say that we didn't need advice or representation. He must have been at his PC because we got an immediate reply asking us to contact him immediately. We rang him and he explained that he could only give limited advice as we have not officially retained him but he did explain that he was already acting for other clients in the same position. He also told us we didn't have the guarantee certificate because this is held by the Notar and that if we allow Dr Ochel to cash in the guarantee it will be lost to us should Dr Ochel go belly up at a later date. It would be better for us to cash it in ourselves and put it towards our mortgage and then retain another management company. We have now decided to give the POA to the solicitor.

I hope you don't mind if we attend your meeting in the Kings Head also.

I am in same position I believe you have given POA to Pablo.S

I am thinking of giving to POA to him but have a great deal of concern about their efficiency

If you dun mind may I ask has this issue move on since giving POA to PS

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Hi there, London based here also caught up in this problem. We have signed POA with Soliticor in Berlin to release bond to us - now waiting to hear on progress. I will probably follow up in a few days if I hear nothing. In the meantime, we have had a small payment of rent in August, but certainly not the full amount owing.

I failed to receive any rent for August tried Mr Markus Böcking, the person taking over O.S but no luck

Any news from your solicitor?

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We have recently received reduced rent for Aug and Sept together as promised. However I am still awaiting a response to my query on 1st Sept as to whether or not local taxes have been paid this year.

I am still missing rental for June, August and September , can I find who did you speak to?

Tried calling Mr Markus and writing to Dr Ochel but there was no respond

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Hey Maximum,

How are you doing?

Since my last scried of 2 Sept, I can confirm that since April I have received 3 rental payments: 2 from Dr O and one from K.

(There also seems to be a lot of vultures flying around looking for easy pickings, eg, OS and Pable S - if you were to pay these fees there is not be much change out of £1500 right now, without any visible signs of payback.)

Dr O have subsequesntly sent me a proposal to pay off the rental guarantee bond of 3800 E and the rent starts getting paid from Sept.

I intend to accept this and by my calc the monthly mortgage drops by approx 35E. It does not sort out the loss making situation but at least it reduces the monthly loss. And with Allianz agreeing the proposal it gives me some faith that I am making the right decision.

I also intend to find out about the 5000E bond for modernisation. I am not sure how to play this one yet but will keep you posted.

Keith

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Has anyone signed PoA to Pablo Solar? Have they been effective in acting on your behalf and would you recommend we take this course too?

E952.00 is a massive amount of money to us right now.

Has anyone received legal advice on this?

Would it be a huge mistake to sign the cancellation of rental guarantee wit Dr.Ochel?

Any advice would be so appreciated.

Pippy - Co. Laois

Got an email from BK hope it is useful

Like many other investors you may have already received requests to sign and return letters from Dr.O. In our review Dr O appears to want to deviate from the original rental guarantee and limit its liability to a lower pay out amount. Therefore, we believe the first required step would be not to sign onto any letters presented by Dr O. In our view, this would leave the original rental guarantee in place.

At the time of the apartment purchase a bank bond certificate was provided to the purchasers of these apartments by the Geno-Volks-bank Essen. In most cases this can be drawn down and used to supplement any shortfall in rental income below the guaranteed amount. In order to claim these funds the original bank bond certificate is required so you would have to firstly locate this certificate, perhaps it is held with a solicitor who acted for you when purchasing the apartment, or the Notary or perhaps it was sent directly to you. BÃœRGSCHAFT is written on the top of Geno-Volks-bank Essen paper. In some cases the bond has been allocated as security for a mortgage raised on the apartment and is therefore held with the financing bank.

With this certificate, we can offer to make an application on your behalf to draw down the bank guarantee which is held with the Geno-Volks-bank Essen. We hope that this way you can meet your immediate financial commitments and to bring some normality back to the cash flow. If it has been handed over as security against a loan then we would have to contact the bank involved to try to utilize this bond to your best advantage. If you have no idea where the bond is we should be able to locate it for you.

Once the bank guarantee has been located/drawn down there are a couple of further options available that need to be considered:

1) The possibility of pursuing Dr O GmbH for damages/to ensure the original rental agreement is upheld. Please be aware that this option would most likely result in legal proceedings which could take up to 12 months until a judgment is rendered. During this period cash flow from the rents is likely to be very limited or none at all. Furthermore there will be the legal and court costs associated with this. Such costs would be based on the amount of damages sought.

Or

2) To dissolve the current agreement with Dr O on the grounds of breach of contract and find a new rental management to manage your property. By doing this the rental guarantee agreement would also cease to exist and it would mean that you would receive the actual rental income directly from your tenant. The amount of rent you receive would depend on the current rent being paid by the tenant in your apartment. It is very likely that this option would mean settling for a lower rent per square meter than originally planned.

Please note: We do not have access to the tenancy agreements therefore it is not possible to check the actual rents being paid.

Whether option number 1) or 2) above is more suitable depends to a large extent on the financial stability of Dr OReal Estate GmbH, i.e. whether they are in fact economically able to abide by the rental guarantee. Furthermore, the choice would depend on your individual situation as in option 1) there may be no rental cash flow for a longer period of time and in option 2) the rental cash flow may be limited.

For the time being, we can offer to contact the bank and facilitate the bank guarantee draw down for you. This service would incur a charge of €139.00 plus 19% VAT if applicable. If you would like our assistance in this matter please complete and return the attached questionnaire:

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Hi guys

a little off the wall topic here but maybe someone can help me.

i have a flat in berlin i may want to sell..

I now live in another country.

Just wondering do i need to be present in berlin to sign the papers at the notar signing or can I give someone power of atourney to be there and sign for me?

some informed responses would be much appreciated.

tks

:rolleyes:

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Has anyone else received a penalty from the tax office for late payment of local taxes? Still haven't got a reply from DO or K. Perhaps the Agents of Service receive these letters?

Who holds the modernisation guarantee - DO, the notary or solicitor?

Thanks.

I have filed tax using schopp-competence, wrote them an email still waiting for a reply but will keep you posted.

Regarding the modernistion guarantee, I am not 100% certain but according to my knowledge I think it is with DO but the certificate is held with the notar.

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Has anyone else received a penalty from the tax office for late payment of local taxes? Still haven't got a reply from DO or K. Perhaps the Agents of Service receive these letters?

Who holds the modernisation guarantee - DO, the notary or solicitor?

Thanks.

Hi Larry,

You did mention in your one of your earlier post that you have received a reduced rent for the month of August and September.

As I am still missing rental for June, August and September , may i ask who did you speak to?

Tried calling Mr Markus and writing to Dr Ochel but there was no respond?

Any advice from you to get my rent

Edited by dericag
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