RESIDENTIAL LEASES – COMMERCIAL LEASES
Residential leases and commercial leases are two primary categories of property leases, each governed by its own legal framework and specific regulations.
A] Legal Issues in Residential Leases
A residential lease concerns the rental of property for housing purposes and is regulated by the Civil Code and special laws, such as Law 1703/1987 and Law 2235/1994. During the lease period, various legal issues may arise, including but not limited to:
- Non-payment of rent – If the tenant fails to pay the owed rent, the landlord may initiate eviction proceedings and claim outstanding debts.
- Statutory minimum lease duration.
- Termination of the lease and early expiration.
- Maintenance obligations – Who is responsible for repairing damages to the leased property?
- Unauthorized alterations to the leased property.
- Return of the security deposit – Disputes often arise over property damage when the tenant vacates.
- Subleasing or assignment of the lease.
B] Legal Issues in Commercial Leases
Commercial leases concern the use of property for business or professional activities and are regulated by Law 4242/2014 and the Civil Code.
Similarly, during a commercial lease, many complex legal issues may arise, including but not limited to:
- Statutory minimum lease duration.
- Right to renewal and extension of the lease.
- “Goodwill” compensation – If the landlord does not renew the lease, the tenant may seek compensation for lost clientele due to relocation.
- Early termination and obligation to pay a penalty clause.
- Rent increases – Permissible increases and legal maximum limits.
- Common expenses and charges.
- Change of property use.
- Subleasing and granting use of part or all of the property.
- Making modifications and improvements to the property.
- Return of the property to its original condition.
- Tenant’s right of first refusal in case of property sale.
