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Determination of the Appropriate and Legally Permissible Ground Rent (ErbbauRG)

When ground leases are created, the amount of the ground rent to be paid as well as provisions for adjustments over time are normally specified in the ground lease contract. In many cases, however, the contractually agreed upon adjustments are not fully utilized thereafter or are based on incorrect calculations. Often these are due to misinterpretations of what was contractually intended, e.g. because the index series that the contract was originally based on no longer exist or the technical terms used when the contract was concluded decades ago are no longer understood today. Property appraisers are therefore called upon to assess the appropriateness of the ground rent currently paid and to adjust it during the course of the appraisal should it be deemed necessary.

See also: Gilich, Tobias; Simon, Thore: Adjustment of ground rents after discontinuation of the indices for the gross monthly earnings of white-collar and blue-collar workers in the manufacturing sector. Cf.: Grundstücksmarkt und Grundstückswert (GuG), Issue 2, 2008, pp. 99-101

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