“Turn 800 Marks into 115,000 Euros: the Tenant Gets the Deposit Back: A Plaintiff Has Fought in Court to Get Back a Rent Deposit Paid by Her Parents More Than 60 Years Ago. The Amount Has Grown Enormously Since Then”, 2022-07-27 (; backlinks):
Who owns the equity value of a rental deposit? In a procedure before the district court, this question was decided in the sense of a tenant. According to the verdict, the housing company must pay her a sum of 115,000 euros. The original rental deposit was 800 marks—more than 60 years ago.
A woman whose parents, who have died in the meantime, had deposited the bail in 1960 had sued. The plaintiff is in principle entitled to the return of the rent security in the form of shares, the district court announced on Tuesday…The market value of the security deposit was EUR 115,000 when the lawsuit was filed in December 2021.
According to the lease, the real estate company was allowed to invest the amount in its own shares, according to the court. The contract therefore provided for the shares to be issued after the end of the lease. However, the housing company should also be entitled to pay out the nominal amount of 800 marks instead of the shares…When the plaintiff wanted the shares, the housing association refused. She referred to the lease and instead paid 409.03 euros, which corresponded to the original 800 marks. The woman then sued for the shares to be handed over.
…Paragraph 551 of the German Civil Code (Bürgerliches Gesetzbuch, BGB) stipulates that the tenants are entitled to income from the rent deposit, regardless of the form of investment chosen. The income from the form of investment selected here includes not only paid dividends, but also any price gains.