Commercial lease

Description

Governed by Decree No. 53-960 of 30 September 1953, a commercial lease is an agreement by which an owner leases a property to a third party for the purpose of carrying on a commercial or craft activity. Only tenants registered in the Trade and Companies Register or the Trade Directory may conclude such a contract. Concluded for a minimum term of 9 years, the lease contract offers the tenant a right to renewal. If the lessor does not wish this renewal to take place, he will be required to pay the lessee eviction compensation, unless there are serious and legitimate reasons (non-payment of rent, unauthorised change of activity, etc.). The commercial lease contract must be drafted in a rigorous manner to prevent any dispute. The description of the premises must be as precise as possible. It is also advisable to establish clearly which activities are permitted, as well as the distribution of loads. A statement of natural risks and a diagnosis of energy performance must also be attached to the contract at the time the lease is signed, and then at each renewal. The same applies, depending on the age of the building, to the asbestos diagnosis. In the interest of the lessor, it is essential to provide for an approval clause, which makes any assignment of the right to lease subject to his express agreement. In the same vein, it is imperative to provide, in the event of an assignment of the right to lease, a clause whereby the lessee remains guarantor and jointly and severally liable to the assignee for the performance of all the clauses of the contract.