Lawyer - Commercial lease

The life of a commercial lease is never static. Initial negotiations, setting the rent, disputes during the term of the contract, challenging a refusal to renew... each stage involves important issues for both lessor and lessee. An imprecise clause, a poorly managed procedure or a missed deadline can have lasting or even irreversible consequences for a business or its assets.

Solent Avocats has been helping retailers, entrepreneurs and landlords to secure and manage their commercial leases for many years. With a recognised practice in commercial law, insolvency proceedings and lease disputes, we are involved at every stage of the contract, whether to structure, defend or adjust the rights and obligations of the parties.

Our approach? Pragmatism, anticipation and efficiency. Because we believe that contractual clarity and a thorough grasp of the law help to avoid disputes as much as to resolve them. Because we also believe that a lawyer should not only intervene after the event, but also work with you to develop the right reflexes upstream. Finally, because the law is a strategic tool, not simply a fixed framework.

Understanding the status of commercial leases: what it means for lessees and lessors

The status of commercial leases, defined by articles L. 145-1 et seq. of the French Commercial Code, is a protective regime designed to guarantee the stability of tenants operating a business. However, it does not apply automatically: the contract, the use of the leased premises and the lessee's status must all meet the necessary conditions.

Failure to register with the commercial register, an activity that does not comply with the intended purpose, or premises being used for residential purposes may call into question the benefit of the status. In such cases, the risk is considerable: loss of the right to renew, inability to claim eviction compensation, contractual uncertainty.

Our firm can help you secure your entry into the commercial lease, check that you are eligible for the status and adjust the applicable legal framework where necessary. Incorrectly classifying a lease can have consequences that can only be avoided with legal expertise.

Negotiating, concluding and amending a commercial lease: securing every clause

There's more to drafting a commercial lease than simply completing a deed. Behind each clause lies a potential lever or trap. Duration, rent, charges, use of premises, works, resolutory clause, notice of termination: each element must be adapted to the project, the location of the building and the risks identified.

A poorly drafted indexation clause may result in the rent being out of line with economic reality. A clause waiving the right to renewal may be deemed unwritten if it violates a provision of public policy. The absence of a technical inspection or inventory of fixtures can give rise to complex disputes over the allocation of the lessee's obligations.

Our firm advises both companies owning commercial premises and professionals wishing to set up their own craft or self-employed business. Our analysis focuses on the form of the contract, sensitive clauses, and the tax consequences (tax, property tax, any VAT). We draft or review each document with a view to prevention and efficiency.

5 clauses never to be signed without legal proofreading

• Unlimited variable rent

• Renewal waiver clause

• Unclear or unlawful indexation clause

• Perpetual joint and several liability clause

• Automatic termination clause without prior notice

During the lease: anticipating difficulties, managing conflicts

The relationship between lessor and lessee can become strained over time: rent increases, disagreements over service charges, disputed use of the premises, payment incidents, etc. The contract is not always enough to avoid disagreements.

Rent reviews during the three-year period, if provided for, must comply with legal and contractual conditions. Certain clauses may be deemed unwritten if they contravene the public policy of commercial lease law. In the event of disagreement, the matter may be referred to a judge for a ruling on the performance or termination of the lease.

Our firm can help you assert your rights and, where appropriate, seek an out-of-court solution. We analyse the co-ownership regulations, compulsory diagnostics, the state of the building, the procedures for acceptance of works and contractual obligations. Each issue is examined from both a legal and an economic perspective.

End of commercial lease: notice, renewal, eviction compensation

The expiry of a commercial lease must be brought forward. The lessor can give notice by extrajudicial act or by registered letter with acknowledgement of receipt. The lessee may apply to renew the lease. If there is no response, the lessee has the right to remain on the premises until a final decision is made.

If the lease is not renewed for a serious and legitimate reason, no compensation is payable. Otherwise, the landlord must pay eviction compensation that takes into account the loss suffered by the evicted tenant (value of the customer base, cost of relocation, loss of business, etc.).

Our firm can help you assess your respective rights, formulate or contest a request for renewal, put a figure on compensation or secure an eviction. Compliance with formalities and deadlines is essential if you are to assert your rights without running up against the inadmissibility of an action or the loss of an acquired advantage.

Renewing or ending your lease: what to do in the 6 months before it expires

• Check the notice periods and terms and conditions

• Estimating the financial risks of a refusal or departure

• Identify tacit renewal or opposition clauses

• Consult a lawyer to plan your strategy

• Analyse the obligations relating to the acceptance of the premises

Commercial leases and companies in difficulty

In the event of judicial liquidation or reorganisation, the commercial lease may be continued, assigned or terminated. The court-appointed agent or administrator has the option of continuing to enforce the lease or waiving it. This depends on the prospects for continuing the business and the conditions for payment of rent following the judgment.

The lessor cannot escape legal protection. A notice issued without respecting the provisions of the Commercial Code or the Civil Code may be annulled. The court judge has jurisdiction to settle these complex disputes.

Solent Avocats acts on behalf of lessors, creditors and lessees in difficulty.

Specific issues and sensitive points in commercial leases: from the right of repentance to triennial revision

Certain specific legal mechanisms can profoundly alter the balance of a commercial lease, particularly when it is entered into or at the end of its term.

Under certain conditions, the right to reconsider allows the lessor to reverse a refusal to renew the lease and avoid paying eviction compensation. However, he must exercise this right in good time and in the required form, and there must be no fault on the part of the lessee.

Rent may be revised at the initiative of either party at the end of a three-year period, but this is subject to precise criteria: variation in rental value, legal ceiling, contractual indexation clause. A judge may review or reject an excessive increase if it is unjustified.

Some exceptional leases and precarious occupancies are not covered by the law, but renewing or extending them may result in them being reclassified. The Pinel Act also provides a framework for certain points, such as the term of the lease, the transfer of leasehold rights, and pre-contractual information obligations (diagnosis, inventory of fixtures, etc.).

A clause that does not comply or omits essential elements (effective date, designation of premises, professional or civil use) may be challenged.

Why call on Solent Avocats in connection with a commercial lease?

Because we are experts in all aspects of commercial leases, both contractual and contentious. Our work covers :

• Negotiating and securing leases from the outset ;

• Analysis and management of disputes during the lease (review, non-performance, termination) ;

• Preparing and defending interests during renewal or termination ;

• Assistance in the event of the lessee's insolvency or the transfer of the lease.

Our approach is based on strategic analysis, responsive support and rigorous legal supervision. Our day-to-day experience in this area, on both the lessor and lessee sides, enables us to anticipate sticking points and adopt the most appropriate response.