what is the duration of French commercial leases “bail commercial” when signed with the operator of a tourist residence “residence de tourisme” ?
Published on :
19/05/2025
19
May
May
05
2025
Commercial leases “bail commercial” are intended to organise the occupation of a commercial premises (a shop, a factory, a restaurant).
They must not be confused with professional leases “bail professionnel” for an activity that is not considered as “commercial” under French law but “professional” (such as medical or legal activities).
Neither must they be confused with a housing tenure “bail d’habitation”.
Because French laws on commercial leases were initially conceived to protect tenants, the minimum mandatory duration of a lease varies depending on if you are an owner or a tenant.
Except exceptional circumstances, such as breach of contract by the tenant (for non-payment of rent for instance), owners cannot terminate the lease during a 9 year period, from the date when the lease became effective.
On the other hand, tenants can terminate lease every 3 years.
For example, if a lease is signed on 05 June 2016, the owner will have to wait until 05 June 2025 to terminate lease but the tenant could terminate the lease on 05 June 2019 or 05 June 2022 or 05 June 2025.
Nevertheless, in some circumstances the legislator has considered that it was necessary to protect the owner because the tenant was in a more powerful position.
A recent law (Loi N°2009-888 22-07-2009) has been enacted by French Parliament to protect owners of apartments in Tourist Residences.
It stipulates that when a commercial lease is signed with the operator of a Tourist Residence “Residence de Tourisme” the minimum mandatory duration of a commercial lease will be nine year for both the owner and the tenant.
This rule only applies to leases signed after enforcement of the law.
The termination of lease is not automatic. At the end of the stipulated period a notice must be served by bailiff “huissier de justice” on the other party and in some circumstances an eviction penalty can be due.
This question will be developed in a future poste
In any case when faced with such a situation, it is advisable to seek the advice of a lawyer.
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Published on : 19/05/2025 19 May May 05 2025Firm newsFirm news / INTERNATIONAL REAL PROPERTY DISPUTES IN FRANCE
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