By Charlotte GAUCHON
7 April 2025
In the jungle of commercial contracts, property leasing occupies a unique place. Neither a traditional lease nor a traditional sale, this complex transaction merits a closer look at its possible outcomes. After all, all leasing comes to an end - sometimes planned, sometimes precipitated. And it is often at this point that the legal complications arise. Exercise of the purchase option The natural outcome of property leasing is the exercise of the purchase option by the lessee. Article L. 313-7, 2° of the French Monetary and Financial Code precisely defines leasing as a transaction that enables the lessee to «become the owner of all or part of the leased property, no later than the expiry of the lease». Terms and conditions To exercise this option, the lessee must generally: Be up to date with the payment of rent and charges Respect the contractual deadline for notifying its decision (usually by registered letter) Pay the residual value set out in the contract Case law has established that the lessee must...
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