Sudovi in cases brought by owners against protected tenants cannot ignore other properties owned by members of their families.

The Constitutional Court has ruled that protected tenants must pay market price if they have another property, and this is a decisive ruling for the compensation of owners and protection of tenants.

Just a week after the Constitutional Court amended the Law on Renting Apartments (LAZ) found it unconstitutional because it concluded that the state, solving a 25-year-old problem of owner compensation and tenant protection, had shifted an excessive burden onto tenants, on September 23rd unanimously adopted and constitutional complaint Brune Mihalić, the owner of a two-bedroom apartment in the center of Zagreb, which he had submitted six years ago in connection with a judgment of the Zagreb County Court.

The Constitutional Court has ruled that the owner Mihalić, who was unable to achieve at the Municipal Court or the County Court that the tenant B. Č. pays the market rent for the right to use the apartment that has been "damaged in a disputed secondary and primary judgment its right to peaceful enjoyment of ownership, guaranteed by Article 48, paragraph 1 of the Constitution."

The Constitutional Court has concluded that the 'right to protected rent is conditional upon the economic possibilities of the tenant's family household related to the market value of another property owned by them, regardless of whether that property is habitable or not!

In other words, courts in cases brought by owners against protected tenants cannot ignore other properties owned by members of their families.

This fact has a decisive impact not only on the price of rent and indirectly means a loss of the right to protected rent, but also on the status of the protected tenant.

This is a solution to a court case that began 20 years ago, and it is particularly interesting because the Constitutional Court, abolishing the LAZ, also abolished Article 6, which defines that "the right of the tenant and protected subtenant to a protected rent and other rights ceases if he, his spouse, life partner or a member of their household that the tenant is obliged to maintain has a habitable apartment or house for rent."

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