# German judicial rulings on property and rental law > Developing situation record from CLSTR: https://clstr.news/situations/german-judicial-rulings-on-property-and-rental-law > Updated: 2026-11-07T05:00:00.000Z. Sources: 2. Developments: 2. Recent rulings from German federal courts have addressed specific legal issues regarding property rights and rental agreements. The Federal Fiscal Court (BFH) changed the tax status of usufruct settlements. The court ruled that compensation for waiving usufruct rights is taxable if the property is being rented for income, overturning a 1992 precedent. The Federal Ministry of Finance has announced a transitional period for individuals to assess these new tax implications. In a separate matter, the Federal Court of Justice (BGH) overturned a lower court decision regarding a dispute over a 40,000 Euro severance payment. The case concerned whether dropping apartment keys into a landlord’s mailbox constitutes a valid handover. The BGH sent the case back for further proceedings, stating that such an action can be valid if the tenant has previously announced it and the landlord has not objected. ## Timeline ### 2026-11-07: German Federal Court rules on key handover and severance payments The German Federal Court of Justice ruled that dropping apartment keys into a landlord's mailbox can be a valid handover if previously announced, overturning a decision in a 40,000 Euro severance dispute. 2 sources. https://clstr.news/cluster/german-federal-court-rules-on-key-handover-and-severance-payments ### 2026-10-24: German Federal Fiscal Court changes tax status of usufruct settlements The German Federal Fiscal Court ruled that compensation for waiving usufruct rights on rented properties is now taxable, overturning a long-standing precedent. 3 sources. https://clstr.news/cluster/german-federal-fiscal-court-changes-tax-status-of-usufruct-settlements --- Cite as: German judicial rulings on property and rental law. CLSTR, https://clstr.news/situations/german-judicial-rulings-on-property-and-rental-law