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NEWSLETTER 2011

200

In article 346 of the TCO, a new provision is stipulated under the

title “restriction of provisions against the lessee”. Accordingly, there is

no payment obligation upon the lessee other than rent and ancillary costs,

and agreements arranging penalty or acceleration clauses in case of a

failure to pay the rent on time, which are very common in practice, are

void.

The termination of an agreement for residential and roofed workplace

is regulated under article 347 and following. It is stipulated under article

347 that if the lessee has not given notice at least fifteen days prior to the

end of an agreement with a definite term, then the agreement is deemed

to be renewed for a period of one year with the same conditions. Also,

the lessor may not terminate the agreement based on the fact that the

term of the agreement has expired. However, the lessor may terminate an

agreement for any reason upon the end of ten years of renewals provided

that the lessor has given notice at least three months prior to the end of the

renewal year. Agreements with indefinite terms may be terminated by the

lessee at any time and by the lessor, upon expiry of ten years, pursuant to

the termination notice given in accordance with the general terms.

Pursuant to article 348 of the TCO, the termination notice for the

lease of residential and roofed workplace may only be valid if it is made

in writing.

The validity conditions of the termination of lease agreements related

to family residences are regulated under article 349. Accordingly, the

lessee is not entitled to terminate the lease agreement if the immovable is

leased as a family residence without the consent of the spouse. However, if

it is not possible to obtain such consent or the spouse refrains from giving

such consent without a just reason, then the lessee may demand from the

court a decision on the issue. If the spouse, who is not the lessee, informs

the lessor and becomes a party to the lease agreement, then the lessor

must inform the lessee and the spouse respectively of any termination

notice and payment terms with respect to a termination notice.

The reasons for termination of lease agreements with respect to

residential and roofed workplaces by taking a legal action are determined

separately for the lessor and the lessee. The reasons originating from

a lessor are regulated under article 350 of the TCO which is titled