Significant decision:

Rip-off with installment plan? OGH has ruled

The affected tenants from the Graz Messequartier are still fighting

(Bild: Sepp Pail)

Styrians were supposed to pay up to 100,000 euros more than originally agreed for their rental purchase. Many of them took the Ennstal Wohnbaugenossenschaft (ENW) to court. Now the Supreme Court has issued a ruling in one case. This could point the way for the outcome of further proceedings. 

Many ENW tenants were shocked when they found out that they would have to pay up to 100,000 euros more for their home than contractually agreed. Despite the purchase being processed on the basis of the "Styrian model", which requires a guaranteed fixed price due to subsidies from the state. ENW always referred to an amendment to the Housing Non-Profit Act. This legal opinion has now been rejected by the Supreme Court.

One affected party sought the help of lawyer Stefan Benda for his individual case with a value in dispute of around 127,000 euros. He had also received incorrect information about the pricing. The court of first instance, in this case the Graz-West District Court, initially ruled in favor of ENW. However, the Styrian went to the next instance, the Graz Regional Court for Civil Matters, which allowed the appeal. ENW, in turn, was not satisfied with this and appealed to the Supreme Court.

Excerpt from the Supreme Court decision

(Bild: OGH)

The Supreme Court has now not upheld ENW's appeal. Contractually agreed deviations to the advantage of the applicant were effective. For example, the costs were explained to the buyer in specific discussions about the pricing using an installment plan guide. Without stating that the price could still change afterwards. The hire-purchase guide thus became an effective part of the contract. 

I am pleased for my client and hope that this decision will have a positive impact on the other proceedings.

Anwalt Stefan Benda

"I am pleased for my client and hope that this decision will have a positive impact on the other proceedings," said Stefan Benda to the Krone. The lawyers Andreas Ulm and Pascal Dreier represent numerous other rent buyers in whose cases decisions by the Supreme Court are still pending. They are confident after the latest decision: "With the decision now available, everything should be clear."