Real Estate

The minimum legal term is 9 years (3-6-9 lease). The tenant may terminate every 3 years unless a contrary clause applies. On expiry, the tenant benefits from the right to renewal or, failing that, an eviction indemnity. Derogatory leases of less than 3 years are possible to start an activity.

It is the sum owed by the landlord to the tenant where it refuses to renew the commercial lease without serious and legitimate grounds. It is intended to compensate the loss suffered: loss of the business, removal costs, redundancies, etc. Its amount can be very high and may be the subject of an expert assessment.

Yes, assignment of the lease is free where the business is sold (Article L.145-16 of the Commercial Code): any clause prohibiting it would be void. Certain formalities are required: notification to the landlord, compliance with any approval clause. Where the leasehold right alone is assigned, the landlord's consent is required.

It is the 10-year obligation on builders (architects, contractors, engineering firms) to repair defects compromising the soundness of the works or making them unfit for their purpose. It is automatically covered by mandatory insurance. The period runs from acceptance of the works.

The seller is liable for hidden defects that make the property unfit for its use. The buyer has 2 years from discovery to act. They may seek rescission of the sale (rescissory action) or a reduction in the price (estimatory action). Non-warranty clauses are regulated.