Questão jurídica principal
Whether the tenants were entitled to a lease extension under Art. 272 CO after the auction sale of the property.
Decisão extraída
The lease extension was not justified because the tenants had scarcely occupied the flat, had voluntarily sublet it for years, had made no concrete housing search efforts, and their renovation/amortization interests did not outweigh the new owner's interest in realizing the property.
Fundamentação extraída
The court held that the statutory balancing under Art. 272 CO is broad, but the cantonal court could give decisive weight to the unusual occupancy pattern, the voluntary decision to sublet instead of use the flat, the lack of efforts to find replacement housing, and the respondent's interest in monetizing property acquired in a forced sale. The expected loss on renovation investments did not, in this case, compel an extension, especially because any added value from authorized renovations could instead be claimed under Art. 260a(3) CO.