Dutch law divides commercial leases into two regimes. Retail, hospitality and comparable premises accessible to the public fall under article 7:290 of the Civil Code and enjoy considerable protection. Offices, warehouses and other business space fall under article 7:230a, which offers only limited protection against eviction.
Statutory basis
Articles 7:290 to 7:310 govern the retail regime. The lease runs for five years and is extended by law to ten unless it is validly terminated at the end of the first period. Article 7:296 lists the grounds on which the landlord may terminate, and article 7:291 makes any clause departing from the regime to the tenant’s detriment valid only with the approval of the subdistrict court. Article 7:230a gives tenants of other business space a right to request suspension of eviction for up to three years.
How it works in practice
Classification is decided by the agreed and actual use, not by the label in the contract. A showroom where customers can buy goods can qualify as retail space even if the parties called it an office. At the end of the first five years the landlord may terminate only for his own urgent use or because the tenant has not conducted himself as a good tenant; after ten years a broader weighing of interests and a zoning ground become available. Termination requires registered notice one year in advance.
Where it goes wrong
Departures from the statutory regime are agreed without court approval, which makes them unenforceable precisely when the landlord needs them. Indexation and service charge clauses are a second source of dispute, especially where the service charge specification is not provided annually. Third, a landlord who terminates for his own use must actually use the premises himself for at least a year; failing to do so exposes him to a claim for the tenant’s loss.
Related terms
Residential rent protection, environmental permit and purchase agreement for real estate.
Do you need to terminate, renew or reclassify a commercial lease? Our real estate lawyers assess the regime and the notice.
