Commercial lease lawyer

Launching a commercial, craft or industrial business often requires a shop or premises. There are several possible solutions: buying or renting well-located commercial premises. The law governing commercial leases is specific and protects tenants, since the commercial lease becomes part of the goodwill of the business. Because of the special duration of the 3/6/9 lease, there are many disputes between lessors and lessees.

Why consult a lawyer?

As a team of property lawyers in Paris, we intervene at every stage of the commercial lease and whenever necessary to defuse the risk of litigation:

• Drafting commercial leases ;
• Disagreement over the three-yearly rent review;
• The lessee’s obligations and the lessor’s obligations;
• Renewing a commercial lease ;
• Assignment of the lease ;
• Subletting commercial premises ;
• etc.

Goldwin Law Firm assists all parties in the management and apprehension of disputes concerning commercial premises before and during the term of the lease. The firm has all the technical expertise needed to define creative and effective strategies. This enables us to defend your interests to the best of our ability.

Let’s start by explaining how a lawyer specialising in tenancy law can help you answer all your questions, such as :

• How can I change my business during a commercial lease? This is known as despecialisation.
• My tenant has stopped paying rent. How can I take action to recover unpaid rent?
• My landlord refuses to renew the commercial lease. How can I get compensation for eviction?
• The owner sells the premises. What are the buyer’s obligations under my commercial lease?
• How much does it cost to have a lawyer convert a precarious lease?
• Who pays the costs of drafting a commercial lease?

Whether you are the lessee of a commercial lease or the lessor, don’t hesitate to consult a lawyer specialising in commercial leases at the first sign of trouble.

When should you call on the services of a commercial lease lawyer in Paris?

Cabinet Goldwin is a firm of lawyers at the Paris Bar specialising in lease law. It advises and defends any individual or legal entity involved in a commercial lease or a business. As an expert in commercial and property law, we are familiar with all aspects of commercial leases.

A lawyer specialising in commercial leases advises lessors on

Do you own commercial premises in Paris or the Paris region? Would you like to sign a commercial lease? Are you wondering about the rules to be complied with, your obligations, setting the rent, the term and the commitment to duration, the status of commercial leases, the important clauses in the contracts, etc.?

As a landlord, you have obligations towards the lessee. Consulting a lawyer specialising in leases will help you avoid mistakes and provide legal certainty. A commercial lease or 3/6/9 lease commits you for 9 years, with the tenant having the right to renew. There is no room for error. The lease must be drafted in accordance with the complex regulations in force. Specific clauses are required depending on your status and that of the lessee.

Then, at any time during the lease period, you can consult a law firm to ask questions about theperformance of the commercial lease or the conditions for renewing or transferring the lease.

A commercial lease lawyer advises tenants

Setting up a business, finding the ideal location, negotiating the commercial lease. These are all matters for an entrepreneur. A lawyer can assist you at every stage, particularly in drafting the commercial lease. He will explain the lessee’s obligations, the term of the commercial lease and the transfer of leasehold rights. He can also help you revise the rent every three years or when the lease is renewed. He can help you obtain compensation for eviction if your landlord does not want to renew the commercial lease when it expires. A commercial leases lawyer will also explain what work you can do and what work you can demand of the landlord.

The lawyer will also advise other parties such as the co-ownership association, the estate agent and even the town hall. For example, do you have the right to install an iron curtain on your façade without authorisation from the general meeting of co-owners? What work on the business premises requires prior authorisation or even planning permission? At every stage in the creation and transformation of your shop, it is useful to consult a business lawyer. He or she will advise you on how to manage your business and resolve any latent or actual disputes.

A lawyer who is an expert in leases knows what type of lease a lessee has signed and the consequences: if the lessee signs a lease for premises used as a dwelling, he will not be able to take advantage of the status of a commercial lease, even if he carries on a commercial or craft activity there. The landlord can then initiate proceedings to change the use of the premises.

Our lawyer can help with commercial lease disputes:

When amicable negotiations fail or are not appropriate, Goldwin Law Firm can defend your rights in court, particularly in the event of :

• Liability of the tenant or sub-tenant in the event of sub-letting.
• Liability of the lessor for latent defects rendering the commercial premises unfit for use.
• Procedures to ensure that commercial premises are maintained in good condition and that the tenant enjoys peaceable enjoyment of the premises.
• Litigation to terminate a commercial lease.
• Disputes relating to the transfer of leasehold rights or business assets.
• Partial despecialisation of commercial premises in the event of a change in the lessee’s business activity.
• Challenging the calculation of eviction compensation.
• Recovery of unpaid rent,
• Challenging the termination of a commercial lease.
• Commercial rent disputes.
• Commercial leaseeviction proceedings.
• Breach of clauses in a commercial lease.

All you need to know about commercial leases

A commercial lease is a contract for the rental of a property used for a commercial, craft or industrial activity. Tenants can take advantage of commercial lease status if they are craftsmen (registered with the RNM trades register) or traders (registered with the RCS trade and companies register).

The commercial lease is known as a 3/6/9 lease, because it involves a minimum 3-year commitment on the part of the tenant. The landlord, on the other hand, commits to a 9-year period and may have to compensate the tenant if he does not renew the lease at the end of the period. This is known as eviction compensation, and is the source of many disputes.

They are regulated by articles L 145-1 et seq. of the French Commercial Code.

Drawing up a commercial lease

Whether it’s a restaurant, fashion boutique or high-tech shop, any commercial or craft business that does not own its premises signs a lease agreement for the premises. This contract generates rights and obligations for each party. For example, the tenant is entitled to peaceful enjoyment of the premises so that he can develop his business, while the lessor wants to ensure that the rent is paid and the property is respected.

One of the special features of a commercial lease is the tenant’s right to renew the lease. If the tenant’s business is growing, he has no desire to lose his business at the end of the lease. The right to renew the lease is a component of the value of the business.

Although signing a written commercial lease is not compulsory, it is strongly recommended. The lease agreement should be drafted by experts in lease law. At the very least, it is important to have the lease agreement proposed by one of the parties proofread by a legal professional, such as a lawyer or notary.

First of all, the lawyer checks the purpose of the commercial premises. This defines the activities that can be carried out. The broader this clause, the more leeway the tenant has to develop his business. The purpose of the commercial lease must be consistent with the co-ownership regulations.

The lease term is 9 years. Shorter terms (precarious lease, derogatory lease) do not benefit from the same rules. Longer terms are possible, but they call into question the principle of three-yearly termination by the lessee.

Rent can be set freely. It need only be fixed or determinable, real and bona fide. In practice, the amount of the lease is set in relation to the local property market. At the end of each three-year period, the lessor may request a capped rent increase.

Disputes relating to commercial leases

• Refusal to renew a commercial lease

Refusal to renew a commercial lease is an act by which the lessor expresses his intention to terminate the contract. In return, the landlord must pay the tenant an eviction indemnity, unless there is a serious and legitimate reason for not doing so. Any clause to the contrary in the lease is deemed unwritten. The right to renewal protects the lessee.

The lessor has a right of repossession to demolish a building that has become unhealthy or dangerous, to move into residential premises ancillary to the commercial premises, or to convert the premises into residential premises.

The landlord does not have to justify his refusal if he offers eviction compensation. This is intended to compensate for the loss caused by the non-renewal. It corresponds to a percentage of the retailer’s turnover over the last 3 years.

Most disputes concern the assessment of the eviction compensation. The lessee has 2 years to take legal action against the lessor to contest the non-renewal of the lease or to obtain eviction compensation. The lessor has a 15-day right of repentance to reverse its decision not to renew the commercial lease. As soon as the tenant receives the letter refusing renewal, he must act quickly and enter into negotiations, with the valuable assistance of a lawyer.

• Transfer of lease rights

The transfer of leasehold rights is the process by which the tenant transfers his rights and obligations to a third party. In principle, the transfer of a commercial lease is unrestricted in terms of form and content, and can be arranged when the lease is drawn up. The lessor may therefore have prohibited any transfer or attached conditions to it, such as a joint and several liability clause. This means that the original tenant is obliged to pay the rent if the transferee defaults. The Pinel Act of 18 June 2014 limited this joint and several liability to 3 years.

The deed of assignment should be drawn up in writing and served on the lessor by bailiff. If this is not done, the assignment will not be enforceable against the landlord and could even become grounds for non-renewal of the lease without eviction compensation.

• Subletting commercial premises

In another related area, the subletting of commercial premises requires the prior agreement and involvement of the landlord. Mere tolerance on the part of the landlord does not constitute acceptance of the sublease. If the landlord fails to respond within 15 days to a letter from the tenant informing him of the sublease, this constitutes acceptance.

• The despecialisation of commercial activities

Partial despecialisation involves adding complementary activities to a tenant’s main business. A specific information procedure is required. The lessor may contest the despecialisation within 2 months. He may also increase the rent at the end of the three-year period if the despecialisation involves a change in the rental value of the premises.

Total despecialisation involves changing the business. The lessor must give his consent in the light of the arguments put forward by the lessee. This has consequences in terms of a change in rent. Specific rules govern cases of despecialisation following retirement or compulsory liquidation.

How can I consult a lawyer specialising in commercial leases?

A lawyer specialising in commercial leases will assist you at all times, from the signing of the contract to its termination. He or she will reread the clauses of the lease, negotiate the renewal or claim eviction compensation. He will advise and litigate on behalf of all parties: landlords, tenants, co-ownership managers, estate agents and notaries.

At the first meeting, a fee agreement is drawn up based on the complexity of the commercial dispute.

Goldwin is an expert in property law in Paris, with complementary areas of expertise:

• co-ownership law
• lawyers to defend against co-ownership trustees
• lawyer in the event of eviction
• lawyer for residential leases
• property transaction lawyer
• corporate law lawyer
• contract law lawyer