Implementation of a value retention clause in a purchase agreement.
May 19, 2011 | 40,00 EUR | answered by Dr. Dr. Danjel-Philippe Newerla
We purchased a 2-family house in 21224 Rosengarten on 14.1.1994 based on a monthly life annuity of 1022.-EUR and lifetime right of residence on the ground floor for the annuitant (88 years old). The stability of the life annuity is defined in the contract as follows:
The price index for the cost of living of a 4-person wage-earner household in the FRG based on 1985=100 serves as the benchmark for the agreed life annuity. This cost of living index is continuously published by the Federal Statistical Office in the Federal Gazette. This index was 120=100 for the month of October 1993. If this index increases or decreases by more than 10 points, the life annuity will increase or decrease in the same proportion, in the percentage by which the base figure of 120 underlying this contract changes.
My question: What is the percentage increase in the cost of living from 1.1.1994 to 1.1.2010? What amount will the life annuity payable from 1.1.2010 increase to?
Dear inquirer,
Thank you for your inquiry. I would like to answer it as follows:
The inflation rate for the period from 1.1.1994 to 1.1.2010 is exactly
This information can also be verified on the official website of the Federal Statistical Office of Germany:
http://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/DE/Content/Statistiken/Zeitreihen/WirtschaftAktuell/Basisdaten/Content100/vpi101a,templateId=renderPrint.psml
In percentage terms, the index increase from 01.01.1994 to the current date is exactly 30.8 €.
Accordingly, the current annuity would amount to 1366.77 €.
In my opinion, it is advisable to present the data up to the current situation and to consider the very latest index.
However, if you would like the data up to 01.01.2010, please provide me with a corresponding note so that I can supplement this within the scope of the free follow-up option. The index is expected to be about 1-1.5% lower at that time.
In my opinion, it is important to know the current value that I have provided to you above. The value up to 01.01.2010 is already outdated to some extent.
I hope I have provided you with an initial legal orientation and wish you much success and all the best!
Lastly, I would like to point out the following:
The legal information I have provided is based solely on the information provided by you. My response is only a preliminary legal assessment of the situation and cannot replace a comprehensive examination of the facts. Adding or omitting relevant information can lead to a completely different legal assessment.
I hope my explanations have been helpful to you. Please feel free to contact me through the follow-up option.
I wish you a pleasant Thursday evening!
Kind regards from the North Sea coast,
Dipl.-Jur. Danjel-Philippe Newerla, Attorney at Law
Stresemannstr. 46
27570 Bremerhaven
kanzlei.newerla@web.de
Fax. 0471/140244
Tel. 0471/140240 or 0471/140241
