Right to occupancy

Article L145-28 of the French Commercial Code sets out the conditions under which a tenant entitled to eviction compensation may be forced to vacate the premises.

Key points

Right to occupancy:

– A tenant who is entitled to an eviction indemnity cannot be forced to leave the premises before actually receiving this indemnity.

– Until such compensation is paid, the tenant has the right to remain in the premises under the conditions and clauses of the expired lease.

Occupancy indemnity :

– During this period of occupancy, the tenant must pay an occupancy indemnity. This indemnity is determined in accordance with the provisions of sections 6 and 7 of the corresponding chapter, taking into account all relevant factors.

Waiver in the case of provisional indemnity :

– By way of derogation, in the specific case mentioned in the second paragraph of article L. 145-18 (which mainly concerns refusal to renew on serious and legitimate grounds), the tenant may be required to vacate the premises as soon as a provisional indemnity has been paid.

– This provisional indemnity is set by the president of the judicial court, on the basis of an expert appraisal ordered in the forms defined by decree by the Conseil d’Etat, pursuant to article L. 145-56 of the French Commercial Code.

Practical implications :

Tenant protection:

This article offers substantial protection to the commercial tenant, guaranteeing him the right to remain on the premises until he has been compensated.

Legal proceedings:

In the event of a dispute, an expert appraisal may be ordered to determine the amount of provisional compensation, thus enabling occupancy of the premises to be terminated under certain conditions, notably in the event of refusal to renew on serious grounds.

This article illustrates the balance sought by the legislation between the tenant’s right to eviction compensation and the landlord’s right to recover his property under fair and equitable conditions.

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