Generally, a commercial lease has a minimum of nine years, so that the parties are obliged to respect this timeThe tenant can apply for a renewal with the landlord who is required to pay a sum in case of refusal
What is the compensation for eviction for a commercial lease?
Prior to the signing of a commercial lease, it is better to judge the important elements of its contentThis is for example the case of the veracity of the clauses, duration and amount of itThis action is essential to avoid disappointment later
To the extent that the lease is expired, the law allows the tenant to renew under certain conditionsIndeed, if the landlord refuses to make the renewal, it is obliged to pay an amount called eviction compensation to the person concernedIt is used to cover the losses sustained by the applicant
In addition, if the lease is not renewed, the subject has the right to occupy the premises until it is doneHowever, it is necessary that the building is still in good condition and is safe for occupants
Non-renewal with compensation
The eviction compensation is considered in relation to damage caused to the tenant and not the errors from the lessorThus, it is evaluated according to the extent of damage is not always easy to establishIn this situation, all details must be considered
Indeed, such compensation shall be the value of goodwill is determined based on the practices of the professionThis value is added by the various costs for the relocation, occupancy and transfer taxes to get a new backgroundThere is also redundancy payments which are under the responsibility of the tenant and the loss of a license as that required for alcohol or tobacco
Moreover, it can be evaluated either by agreement or within reach of a competent courtFor this second case, the law takes into account the actual date of foreclosure
Non-renewal without compensation
Note, however, that circumstances offer the possibility of the landlord not having to pay compensationThis is precisely what is mentioned in section L145-17 of the Commercial Code which is considering two alternatives:
· Reason serious legal: if the tenant has not fulfilled its obligations vis-à-vis the agreement, the owner can avoid paying the amount owedThis also applies if the person has ceased operation of the business for no good reason· Works related to the building: be aware that if the lessor decides to renovate the house due to poor condition, it is discharged from the eviction indemnityHowever, the judge of funds must first make a finding places to confirm the claims |
