Estimated reading time (in minutes)
Status of commercial leases for long-term occupancy
In a judgment rendered on June 13, 2012, the 3rd civil chamber of the Court of Cassation reaffirms established case law. According to Article 145-5 of the Commercial Code , it specifies that a tenant who initially concludes a two-year lease and continues to occupy the premises will automatically benefit from the status of commercial leases, which generally have a duration of nine years. , unless opposed by the lessor.
Vigilance and opposition of the lessor
In concrete terms, if a lessor agrees to a two-year lease that deviates from the standard duration of the commercial lease, he must be vigilant and proactively oppose any continued occupancy by the tenant before the expiration of the term of the lease. Otherwise, the tenant acquires commercial lease status, entitling them to the legal protections and benefits associated with such leases, including the extended nine-year term .
This decision highlights the importance of quick action and clear communication between landlords and tenants. It stresses the need for lessors to actively exercise their right to oppose continued occupation in order to prevent tenants from automatically acquiring the status of commercial leases. By quickly fixing the problem before the end of the original lease term, landlords can maintain control over the length and terms of the lease.
Commercial property owners and landlords should be aware of this decision and take the necessary steps to protect their interests. It recalls that the fact of not opposing the maintenance of the occupation by a tenant within the appropriate deadlines can have important implications, being able to involve prolonged durations of lease and associated legal obligations.
Overall, this decision of the 3rd civil chamber of the Court of Cassation confirms the old practice in terms of the duration of leases and the occupation of tenants. It highlights the need for landlords to actively exercise their rights and respond appropriately to tenants’ stay in order to preserve their contractual provisions and prevent involuntary lease extensions.
