German Federal Court rules on key handover and severance payments

The German Federal Court of Justice (BGH) has overturned a lower court ruling regarding a dispute over a 40,000 Euro severance payment. The case involved a tenant in Frankfurt who had signed a termination agreement to vacate her apartment by a specific deadline in exchange for a lump sum intended to cover moving costs and fixtures.

The landlord refused to pay the agreed amount, claiming the keys were not returned on time. While a relative of the tenant had attempted to coordinate a handover, the keys were ultimately dropped into the landlord's mailbox on the evening of the deadline. A lower court had previously ruled in favor of the landlord, arguing that the return was not valid because the landlord was not notified of the mailbox drop.

The BGH has now sent the case back for further proceedings, stating that dropping keys into a mailbox can constitute a valid handover if the tenant has previously announced the action and the landlord has not objected. The court noted that whether a landlord must be explicitly notified of every unannounced drop remains an open legal question, but the previous dismissal of the claim was unjustified.