Austria: Compulsory Administration to Enforce Apartment Maintenance
The Austrian Supreme Court (Oberster Gerichtshof, hereinafter OGH) has affirmed that directives concerning maintenance and enhancement works are required to be issued via compulsory administration.
Non-compliance with maintenance obligations leads to mandatory administration
In 2007, the applicant had executed a principal tenancy agreement for a residential unit with the first respondent, who was the legal owner at that time. In 2015, the first respondent transferred title of the property to his two children, while retaining the usufructuary rights.
In accordance with the interim injunction issued on 20 June 2023, the first respondent was instructed to carry out designated maintenance and improvement works on the property. The applicant subsequently applied for compulsory administration of the property, including the appointment of a compulsory administrator. The court of first instance granted the application, citing incomplete compliance with the ordered maintenance and improvement works. The court of appeal affirmed this decision.
The usufructuary can be subject to litigation
The OGH upheld the decisions of the lower courts.
If the landlord does not perform maintenance or improvement work, the court is required—upon request—to mandate that the work be completed within a reasonable time frame, but no longer than one year. In this situation, the landlord who holds the usufruct may be sued for failing to comply with such an order, rather than the actual property owner.
The enforcement of an order mandating the landlord to undertake maintenance and improvement works is executed solely through the appointment of an administrator. Compulsory administration constitutes the exclusive mechanism for enforcing such orders, thereby ensuring compliance with legal requirements. According to statutory provisions, this process encompasses the entire building, granting the appointed administrator comprehensive administrative authority.
These powers must be conferred upon the administrator in their entirety, regardless of any usufructuary rights or the associated status of the usufructuary as the landlord. This approach ensures that the enforcement of the order remains effective and uninterrupted.
OGH 5 Ob 146/25v (12 March 2026)