Useful

In the event of non-performance of the contractual relationship, the Lessor may submit a claim to the Lessee and subsequently may terminate them.

Common breaches are when the Renter:

– does not pay the rent at all;

– does not pay the rent within the specified time. The contract may include a term for a delay in renting the Lessee to pay to the Lessor a penalty defined as a percentage of the rent for the month or as a percentage for each day of delay;

– threatens with its actions the leased property (significant damage or destruction);

– substantially changes the purpose of the property. For example, an office property is used for a bar;

– violates its essential obligations. The court decides which violations are essential for a case.

In the case of systematic breaches of contractual obligations by the Lessee, the Lessor first makes a written warning to the Lessee and if he fails to comply with it, termination of the contract may be requested. If both sides do not understand each other, the use of the property may also be terminated through the court.

PROTECTION OF THE LESSOR ‘S RIGHTS UNDER RENT

The Lessor has two options to protect his rights when the Lessee fails to pay the rent.

1. Where the Lessor has no interest in terminating the contract. He is then entitled to claim the rent to be paid, together with the statutory interest thereon, up to the moment of payment, as well as the corresponding penalties, if provided for in the contract. If the Lessee does not pay these amounts on a voluntary basis, the Lessor may bring an action before the court.

2. When the Lessor decides to terminate the contract. The law provides for special rules which the landlord must comply with. They are:
* Sending a written notice to the Lessee. It provides an appropriate payout period. The notice must contain an explicit warning that the contract will be terminated after the expiration date. For proof that the notice has been received by the Lessee, the most frequently used letter is a letter with acknowledgment of receipt or notary invitation. If the Lessee fails to pay after the expiration of the term specified in the notice, the contract is automatically terminated.
* Claim before the court. Usually, upon termination of the contract, the Lessee does not leave the flat immediately and voluntarily. However, the Lessor has no right to discard the Lessee, as wrongly believed. The law penalizes such behavior, qualifying it as self-management. It is necessary to bring an action before the court for the expropriation of the property. In the same case, compensation may be claimed for the use of the property after termination of the rental contract, as well as payment of unpaid rents and penalties (if provided for in the contract).
* In practice, the Lessee does not pay the rent and not release the property in the hope that the Lessor will bring proceedings against him. It is well-known that once he entered the court, the dispute lasted for years. However, the landlord-claimant may choose to have his case brought not in the ordinary order of action but in the order of speedy proceedings. This must be reflected in the application. It is necessary to apply only the written lease to the claim. Notarial certification and entry of the contract give additional protection to the Lessor. Without proceeding with lengthy proceedings, he may obtain a writ of execution in the quick procedure if the tenant ceases to pay.

MPORTANT – Quick court proceedings can only be applied to rental contracts that are entered!

Self-management

Very often the Lessor decides that once the lease has expired, it can break the door, replace the lock and return the home because he is the undisputed owner of the property.

Such self-management poses a lot of risks. It is assumed that the dwelling is furnished and the owner is at risk of being a defendant in a new case where the tenant claims to disappear things, money, etc. For this reason, if the owner decides to enter in this way in his property, he must do so in the presence of witnesses, before which a memorandum of findings can be drawn up with an inventory of the items of property in the dwelling.

It is better, however, for the owner to wait for the court to take a verdict and a bailiff to enter it into the dwelling.

CAN THE LESSEE MAINTAIN THE MATTER OF HIS RENTER FOR RENT RENT?

Under the Law on Obligations and Contracts (Art. 228), the Lessor undertakes to provide the Lessee with a temporary property (rented property) and the Tenant to pay him a certain price. These relationships must be contracted.

The tenant is treated as a malfunctioning party if it does not fulfill its principal obligation under the contract to pay the rent. By law, sanctioning may be effected primarily with the interest the Lessee pays on the unpaid rent from the day of delay (Article 86 of the CPA) or with compensation under the general procedure for loss or loss of profits or termination of the lease (Article 87 of the Obligations Act) and other legal remedies, but not with a pledge on the tenant’s property in the leased property or with their detention.

In case of non-payment of the rent the Lessor may cancel the lease by giving the Lessee a payment term with a written warning when the contract is in writing.

PROTECTION OF THE RENTAL’S RIGHTS FOR SALE OF RENTAL PROPERTY

To protect the Lessee’s rights in a future transfer of real estate, it is a good idea for the lease to be entered into the Notary to remain in effect with the new owner (transferee). The renter has to decide whether to take advantage of this opportunity, as the contract is valid without being entered. Rental contracts for more than one year may be entered in the Notary (Article 112 (e) of the Property Act).

The law requires a written form with a notary certification of the signatures.

If the dwelling is sold, the signed rental agreement between the Lessor and the Lessee will be obligatory for the new owner of the property only if it is entered in the Notary.

In case the Buyer of the property asks the owner to terminate the contract, this can be done with an annex to be entered. Each prospective buyer can get acquainted in advance with the information on the weights on the property. The registers of the Registry are public.

If the contract is entered in the Notary, the Lessor’s obligations are transferred to the new owner and it becomes binding on the Buyer for the entire term for which it is concluded. (Article 237, paragraphs 1 and 2 of the LCP).

If the contract is not entered in the Notary but has been concluded before the transfer of the property in writing and has a reliable date, then it is obligatory for the Buyer within the term stipulated therein, but not for more than one year from the moment of the transfer of ownership. This protects the interests of the Lessee (Article 237 of the Obligations Act). The parties to the contract will now be the new owner of the property and the tenant.

When there is no written record of a reliable date and the tenant is in possession of the property, the contract is binding on the Buyer as a lease without a fixed term and the new owner may terminate the contract with a one-month notice.

Under Article 237 (3) of the LCP, the Lessor owes damages to the Lessee for the damages caused to him by having deprived him of the rented (already sold) property in advance. This is settled through the court.

The authorization could be otherwise than the legal framework set out above if the lease contains other arrangements between the two parties on this matter.