During the negotiation of the commercial lease, the lessor is free to set the initial rent. After that, it can be revised every three years, but only up to a certain limit set by law. Most commercial leases allow for rent to be indexed to the INSEE construction cost index (CCI) or the commercial rent index (ILC).
Furthermore, the lessor and tenant can freely discuss how charges should be split between them ( property tax, condominium charges, etc.).
Is it possible for the property’s owner to reclaim it?
Commercial property does not remove the landlord’s right to reclaim his property at the end of a lease or a three-year period, for example, if the premises include a personal residence, construction, reconstruction, personal residence, demolition, or even a serious and legitimate reason. A notary’s signature ensures that if the tenant fails to meet his obligations (such as non-payment of rent), the landlord can get his property back quickly. Only a notarized lease contract protects the lessor from having a judgement entered against him ordering his tenant to pay rent and causing the lease to expire.
Is it possible for the tenant to break his lease?
Each three-year period has a notice requirement, and the tenant can give notice at the end of any of those periods, which is why the phrase “lease 3-6 -9” is commonly used.
For the commercial lease to be terminated, the tenant must give notice of his intention to leave at least six months before it expires, whichever comes first: three years or the term of the commercial lease. Commercial leases, on the other hand, may make it impossible.
An end to a commercial lease isn’t automatic in any situation. At the end of a commercial lease, either the lessor gives notice of a break with or without a renewal offer, or the tenant requests a renewal. The commercial lease will continue indefinitely if it is not terminated or requested to be renewed.
Lessors are also permitted, but not required, to transfer their leases to their successors as part of the sale of their business assets. An increasingly common scenario is one in which the existing business ceases operations and transfers its right to the lease to a business doing something completely different. This transfer may be prohibited by the lease contract, but the law allows it if he asserts his retirement rights.
What are the requirements for a tenant to be eligible for a lease extension?
The tenant has the option to extend his commercial lease for an additional nine years at the same rent, subject to a cap. If the landlord decides not to renew the lease, he must pay the tenant’s eviction costs. If you are evicted from your commercial lease, you are entitled to full compensation for the damages you suffer. The indemnity can then be set at the fund’s current market value.
Is there a way to avoid commercial leases altogether?
Certainly, the Commercial Code permits the conclusion of contracts that aren’t governed by the commercial-lease statute. These are short-term leases that should not last longer than two years (not to be confused with the precarious occupation agreement, commonly called precarious lease ). This commercial lease automatically extends for an additional nine years if, at the end of the initial term, the tenant remains in possession of the premises (or if the original lease is renewed or a new commercial lease is signed for the same premises). The tenant has no choice but to comply with an eviction request from the lessor, and he or she will not be compensated in any way for doing so.
Derogatory leases may be applied only during the tourist season, for example. Seasonal rentals, on the other hand, are for a shorter time frame, typically lasting from three to six months. The lease comes to an end automatically, without the need for notice or notification. On the other hand, the season can be renewed annually. Thus, the lease allows for rent to be waived during the closing period of the lease agreement.
It’s important to keep in mind that commercial leases can be arranged for intermittent use, meaning that they only apply on certain days of the week. This is useful for temporary businesses like pop-up shops.
Commercial leases, despite their simple appearance, are a breeding ground for a myriad of disputes. As a rule, the notarized lease is strongly recommended in all cases. An authentic notary guarantees that your document will be balanced, safe, and effective because only a notary can do so. A commercial lease model can be found online, but it may not meet all of your obligations and may not be able to protect your business. Forms for online commercial leases are the same. For a commercial lease that is tailored to your specific needs, consult a notary who is knowledgeable about drafting and legal issues.