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Commercial lease
Does a new insurance obligation justify the removal of the rent cap?
Publié le 24 mars 2025 - Directorate for Legal and Administrative Information (Prime Minister)
The removal of the rent ceiling for a renewed commercial lease may be motivated by a new legal obligation on the part of the lessor. The Court of Cassation said so in a ruling issued on January 23, 2025, and published in the Bulletin.
A lessee of a commercial lease disputes the setting of the rent of the renewed lease at an amount that is not capped. The landlords are taking the tenant to court.
The appeals court upholds the donors’ application. In its view, the removal of the rent ceiling in question is justified by the significant change in the premiums for civil liability insurance paid by lessors. The tenant is appealing to the court of cassation.
The Court of Cassation dismisses the appeal. In its view, the obligation of the lessor to insure against the risks of civil liability (of the non-occupying co-owner) constitutes a significant change in legal obligations at the expense of the lessor.
The evolution of the premiums for civil liability insurance may therefore be taken into account for the setting of the price of the commercial lease.
So the rent may be removed from the ceiling because of this change.