Property department

Tenancy and lease agreements

Although tenancy and lease agreements bear a significant resemblance to one another, there are aspects that differentiate them. These mainly pertain to the terms of use of the thing or of the right being the subject of a lease or of a tenancy.

Lease agreements entitle the lessee solely to use the given thing or right and not to collect profits or to sublease it to third parties without the consent of the owner. Tenancy agreements, though also requiring the consent of the owner for subtenancy, entitle the tenant to collect the profits emerging from the thing or right being the subject of tenancy. In both cases a rent is usually paid to the owner.

Additionally, the tenancy period can be stipulated for up to 30 years – after that it is deemed concluded for an indefinite time. So are lease agreements, but only concluded between entrepreneurs – apart from commercial relations they can be concluded for up to 10 years. This period passed, the agreement is deemed concluded for an indefinite time.

If any of these agreements pertain to immovable property, adequate records can be made in the land and mortgage registers. This, however, is not obligatory.

In line with the principle of freedom of contract stipulated in the Civil Code, the agreements can be concluded in any form, provided they are not contrary to the statutory provisions or defy the principles of community life. Although agreement templates are commonplace, it is advisable to thoroughly review each and every one of them before signing.

CGO Legal law firm provides services of reviewing and verifying the provisions of ready – made agreements as well as drafting agreements anew.

Should you be interested in learning more on the above, please do contact us.