Permanent Right of Residence: What Tenants Should Know
- Selma
- Apr 3
- 6 min read
When it comes to housing security, few legal arrangements offer as much protection as a permanent right of residence. This unique housing right, though rarely discussed in everyday conversation, can be particularly valuable for seniors and families facing uncertain housing situations. Let's explore what this right entails and how it differs from a standard rental agreement.
A permanent right of residence is a durable housing right that is notarized and registered in the land registry. It allows a person to inhabit a property without being the owner. This right can be granted for life or for a specific period and offers extensive security—far beyond what a traditional rental agreement provides.
Legal Foundation: Where Is This Right Regulated?
In Germany, the permanent right of residence is legally established in two main laws:
Section 31 of the Condominium Act (WEG)
The Civil Code contains supplementary regulations regarding personal easements:
This section forms the legal basis for the permanent right of residence, stating:
"A permanent right of residence is the real right to use a building or part of a building as a residence to the exclusion of the owner."
This paragraph establishes that the permanent right of residence is a real property right—a right that exists directly on the property itself and is registered in the land registry.
Sections 1090-1093 of the German Civil Code (BGB)
The Civil Code contains supplementary regulations regarding personal easements:
Section 1093 BGB allows a person to use parts of a building for residential purposes—similar to the permanent right of residence.
Sections 1090-1092 BGB regulate the establishment and effect of such rights.
How Is a Permanent Right of Residence Established?
For a permanent right of residence to be legally valid, the following steps are necessary:
A notarized contract between the owner and the resident
Registration in the land registry at the responsible local court
Only with land registry entry is the right of residence legally enforceable and reliably protected—even in cases of change of ownership, insolvency, or sale of the property.
Who Benefits From a Permanent Right of Residence?
A permanent right of residence can be beneficial in various life situations—especially when housing security without ownership is desired:
Seniors After Property Sale
Many seniors choose to sell their property to free up capital for retirement or care costs. With a registered right of residence, they can still live in their own home for life without paying rent.
Family Members or Close Friends
During gifts or inheritances, a right of residence is often granted to relatives—for instance, when parents transfer the house to their child but wish to continue living there. Conversely, a secure right of residence can be granted to a child attending university.
Tenants With Uncertain Housing Situations
Especially in cities where rental apartments are being converted to condominiums, or where property sales threaten housing stability, a permanent right of residence can help secure long-term residence in the apartment. Tenants gain legal stability and are protected from evictions.
The permanent right of residence is particularly valuable when there is a personal relationship of trust between the owner and resident—for example, in families or close partnerships.
Rights and Obligations With a Permanent Right of Residence
A person who possesses a permanent right of residence may use the property permanently and, typically, exclusively. This comes with certain rights but also specific obligations.
Rights of the Resident
Use of the entire property including basement, garden, or garage (depending on the agreement)
Visitation rights and the ability to live with a spouse or family members
Protection against termination: The right of residence remains even with a change of ownership
Land registry entry protects against sale or eviction due to the owner's personal needs
Obligations of the Resident
Bearing ongoing utility costs such as electricity, heating, water, waste disposal
Minor maintenance within the residence (e.g., cosmetic repairs)
Renovations or changes must be coordinated with the owner
Important: The exact rights and obligations are contractually regulated. Notarial advice is strongly recommended.
How Does a Permanent Right of Residence Differ From a Rental Agreement?
At first glance, a rental agreement and a permanent right of residence seem similar—in both cases, you live in a property without being the owner. However, the differences are substantial:
Characteristics | Permanent Right of Residence | Rental Agreement |
Legal Form | Real property right, registered in the land registry | Contractual tenancy relationship |
Protection Against Termination | Very strong – almost impossible to terminate | Termination possible (e.g., owner's personal use) |
Duration | Lifelong or fixed-term | Indefinite or fixed-term |
Rent | No rent, possibly one-time payment | Monthly rent payments |
Change of Ownership | Right of residence remains in effect | Rental agreement can be terminated |
Security | Highest housing security | Dependent on tenancy law |
💡 For tenants, a permanent right of residence can represent a significantly more secure alternative to a traditional rental agreement—especially in situations with uncertain ownership or when rental properties are being converted into condominiums.
Can the Permanent Right of Residence Expire?
The permanent right of residence can end under certain circumstances:
Through renunciation by the entitled person (e.g., when moving or if their family needs the property)
When a time-limited right of residence expires after the agreed period
In case of death, if no alternative arrangement has been made
In exceptional cases through court revocation due to serious misconduct (e.g., willful destruction)
The decisive advantage: The sale of the property does not void the right of residence. The new owner must respect this right.
Conclusion: Permanent Right of Residence—Security Instead of Worry
The permanent right of residence offers a long-term, legally secured housing solution—especially for people who are not property owners but still want to live permanently in their apartment or house. Whether for seniors, family members, or long-term tenants: it creates security in uncertain times.
💡 Anyone considering a permanent right of residence should seek legal or notarial advice—especially regarding questions about contract design or land registry entry.
Common Questions About Permanent Right of Residence
How Long Is a Permanent Right of Residence Valid?
A permanent right of residence can be agreed upon for a lifetime or for a specific period. The exact duration is documented in the notarized contract.
Legal basis: Section 31 of the Condominium Act (WEG); supplemented by Section 1090 of the German Civil Code (BGB) (regarding duration and content of limited personal easements)
Can a Permanent Right of Residence Be Inherited?
Can the Permanent Right of Residence Be Terminated or Revoked?
Am I Allowed to Sublet With a Permanent Right of Residence?
Do I Have to Pay Rent With a Permanent Right of Residence?
What Happens to the Right of Residence When the Property Is Sold?
Can I Voluntarily Give Up My Permanent Right of Residence?
How Does the Permanent Right of Residence Differ From Usufruct?
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