Lease agreement and coronavirus

The lease agreement and the coronavirus is a topic that has been edited for a long time. On April 1, 2020, the anti-crisis shield package entered into force, which includes the following acts: the act amending the act on special solutions related to preventing, counteracting and combating COVID-19, the act amending the act on the system of development institutions, as well as the draft act on granting public aid for the purpose of saving or restructuring entrepreneurs, which has not yet been adopted. The so-called the anti-crisis shield is also of considerable importance for the existing lease agreements.

Rental in shopping malls

As you know, it was forbidden to conduct business activity in commercial facilities with sales areas exceeding 2000 m2. There were doubts about the concluded lease agreements. It was postulated to lower the rent for tenants, but it was finally decided that the mutual obligations of the parties to the lease agreements would expire during the ban. The expiry of mutual obligations means that tenants are exempt from rent and fees, and the landlords, in turn, may request that the premises be vacated during the epidemic.

The legislator also indicated that the person entitled to use the commercial space (tenant) should submit to the provider (landlord) an unconditional and binding offer of the will to extend the term of the contract on the current terms for the period of the prohibition extended by six months. The offer should be submitted within three months from the date of lifting the ban.

Extending the lease of premises

Premises lease agreements that were concluded before the effective date of the Amendment Act, and which expire after that date and before June 30, 2020, are extended until June 30, 2020. For extension, it is necessary to submit a declaration of intent by the tenant which must be submitted no later than on the expiry of the term of the contract. The extension does not apply:

  • to the tenant who, during at least 6 months of the tenancy agreement, preceding the effective date of the Act of March 31, 2020. amending the act on special solutions related to prevention, counteraction and combating COVID-19, other infectious diseases and emergencies resulting from them and certain other acts, or for the entire duration of the tenancy agreement preceding the effective date of this act, if the agreement was in force for less than 6 months preceding the date of entry into force of this act, he was in delay with payment:

 

    1. rent or
    2. fees for using the premises other than rent or
    3. fees that are not dependent on the landlord and are charged by him

– for at least one settlement period, if the total value of these overdue receivables exceeded the amount of rent due for one month, or

  1. if, during the term of the lease agreement, the tenant used the premises in a manner inconsistent with this agreement or contrary to the purpose of the premises or neglected his obligations, allowing for damage to this premises, or
  2. if, during the term of the rental agreement, the tenant has rented, sublet or handed over for free use of the premises or part of it without the required written consent of the landlord, or
  3. to a tenant of a dwelling, who is entitled to a legal title to another dwelling located in the same or a nearby town, if the dwelling meets the conditions for a replacement dwelling, unless the tenant cannot, for reasons beyond his control, use the premises.

lease agreement and coronavirus

The lease agreement and the coronavirus – can the tenant be terminated the lease agreement or the amount of the rent?

The Act also introduced a ban on terminating the tenant of the premises lease agreement or the amount of the rent until June 30, 2020. In this case, there are also exceptions in which the prohibition does not apply, namely if:

  1. the tenant, despite a written reminder, continues to use the premises in a manner inconsistent with the contract or in accordance with its intended use, or neglecting his duties, allowing damage to occur, or destroying devices intended for shared use by residents, or grossly or persistently violating the domestic order, making the use of from other premises, or
  2. rented, sublet or handed over for free use of the premises or part of it without the required written consent of the owner, or
  3. uses the premises that require emptying in connection with the need to demolish or renovate the building, or
  4. the tenant has the legal title to another dwelling located in the same or a nearby town, if the dwelling meets the conditions for a replacement dwelling, unless the tenant cannot use the premises for reasons beyond his control,
  5. the tenant violates the provisions of the lease agreement or legal provisions regarding the use of the premises (applies to the lease agreement for premises intended other than residential)
  6. it is necessary to demolish or renovate the building in which the premises is located (applies to the lease agreement for premises intended for non-residential purposes).

If the rental agreement or the amount of rent have been terminated by the landlord prior to the entry into force of the Amendment Act of March 31, 2020 amending the Act on special solutions related to the prevention, prevention and combating of COVID-19, other infectious diseases and crisis situations caused by them, and certain other acts, and the notice period expires after that date, and before June 30, 2020, the notice period is extended to June 30, 2020. The notice period is extended based on the tenant’s declaration of will, which the tenant should submit no later than on the expiry of that period. The lease agreement and the coronavirus is a river-land topic, it’s good to read it.

Apl. lawyer Agnieszka Skoracka

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