Dutch Civil Code

Book 7 Particular agreements

Title 7.4 Lease agreement

Section 7.4.1 General provisions

Article 7:201 Definition of a 'lease agreement'
- 1. A lease agreement is an agreement under which one of the parties, 'the lessor', engages himself towards the other party, 'the lessee', to grant him the use of an immovable or movable thing or of a part of such thing, opposite to which the lessee engages himself to perform a counter performance.
- 2. A lease agreement may also be related to the use of valuable rights. In that event the provisions of this Section (Section 7.4.1) and of Sections 7.4.2 up to and including 7.4.4 are applicable to the lease agreement as far as the scope of these provisions does not oppose to such an application in view of the nature of the valuable right.
- 3. A farm lease agreement is not regarded as a lease agreement.

Article 7:202 Entitlement to the fruits (benefits) of the leased thing
If the lessee is entitled to the fruits (benefits) of the leased property, then this right is regarded as a right to enjoy that property as meant in Article 5:17 of the Civil Code. The lessee obtains this right from the commencement date of the lease, on the understanding that civil fruits (civil benefits) shall be calculated from day up to day.

Section 7.4.2 Obligations of the lessor

Article 7:203 Placing the leased out property at the disposal of the lessee
The lessor is obliged to place the leased out property at the disposal of the lessee and to leave it at his disposal insofar this is necessary to comply with the agreed enjoyment (right of use).

Article 7:204 Defects in the leased property
- 1. With regard to defects in the leased property, the lessor has the obligations as described in this Section (Section 7.4.2).
- 2. A defect is a quality or characteristic of the leased property or another circumstance not attributable to the lessee, as a result of which the leased property does not provide the lessee the enjoyment which a lessee, at the moment on which the lease agreement was entered into, could have expected to get of a well maintained property of the kind as to which the lease agreement relates.
- 3. An actual disturbance in the agreed enjoyment by a third person who does not claim to have a right in the leased property as meant in Article 7:211, is no defect in the meaning of paragraph 2; neither a defect is the claim of a third person to the leased property itself, but without actually causing a disturbance in the agreed enjoyment.

Article 7:205 The rights (actions) and legal remedies of Book 6 of the Civil Code
The lessee is entitled to the rights (actions) that result from this Section (Section 7.4.2) without prejudice to all other rights (actions) and legal remedies available to him pursuant to law.

Article 7:206 Remedy of defects
- 1. If the lessee desires so, the lessor must remedy a defect, unless this is impossible or it would require expenditures which in the given circumstances reasonably cannot be expected to be made by the lessor.
- 2. This obligation does not apply to minor defects which the lessee has to repair himself pursuant to Article 7:217, nor to defects for which the lessee is responsible (liable) towards the lessor.
- 3. Where the lessor is in default of remedying a defect, the lessee may perform the remedy himself; as far as the remedy costs are reasonable, they may be recovered from the lessor, if required by withholding them from the rent. It is not possible to derogate to the disadvantage of the lessee from this provision.

Article 7:207 Reduction of the rent
- 1. In the event that the enjoyment of the lease has been diminished due to a defect, the lessee may claim a proportional reduction of the rent as from the day on which he has properly notified the lessor of the defect or on which the defect was sufficiently known to the lessor in order to take measures, up until the day that the defect is remedied.
- 2. The lessee is not entitled to a reduction of the rent to the point of minor defects that he has to repair himself pursuant to Article 7:217, nor of defects for which he is responsible (liable) towards the lessor.

Article 7:208 Damages
Without prejudice to the rights and legal remedies of the lessee in the event of a non-performance of the obligation meant in Article 7:206, the lessor is obliged to compensate the damage caused by the defect, if the defect has arisen after the conclusion of the lease agreement and is attributable to him, as well as if the defect already existed at the conclusion of the lease agreement and the lessor was aware or ought to have been aware of its existence or the lessor had made clear, at that time, that the leased property did not have this defect.

Article 7:209 Mandatory law
It is not possible to derogate to the disadvantage of the lessee from Articles 7:206, paragraph 1 and 2, 7:207 and 7:208 as far as it concerns defects of which the lessor was aware or ought to have been aware at the conclusion of the lease agreement.

Article 7:210 No agreed enjoyment left
- 1. If a defect makes it entirely impossible to enjoy the leased property in conformity with the lease agreement, but from Article 7:206 follows that the lessor is not obliged to remedy this defect, then both, the lessee and the lessor, may rescind the lease agreement on the basis of Article 6:267 of the Civil Code.
- 2. The damage caused by the fact that the lease agreement has ended in consequence of paragraph 1, may be recovered by virtue of a debt-claim for damages caused by a defect.

Article 7:211 Rights of action (legal claims) of third persons against the lessee
- 1. When a third person has filed a legal claim (right of action) against the lessee with the objective to sell off the leased property by foreclosure or to obtain a right or title in the leased property with which that property should not have been burdened according to the lease agreement, then the lessor is obliged, as soon as the lessee has notified him of this legal claim (right of action), to enter the legal proceedings in order to defend the interests of the lessee.
- 2. The lessor must compensate the lessee for all costs incurred with regard to this legal claim (right of action), though, if the notification was not given immediately, only the costs that have arisen after that notification have to be compensated.
- 3. When the main lessor has filed a legal claim (right of action) against a sublessee in relation to the subleased property, the previous paragraphs apply accordingly to the sublessor. For the purpose of Article 212 of the Code of Civil Procedure, this legal claim (right of action) against the sublessee is equated with a legal claim (right of action) with the objective to sell off a debtor's property by foreclosure.

Section 7.4.3 The obligations of the lessee

Article 7:212 Counter performance
The lessee is obliged to perform a counter performance in the agreed way and at the agreed times.

Article 7:213 Prudent lessee
The lessee is obliged to behave himself with regard to the use of the leased property as a prudent lessee.

Article 7:214 Use in conformity with the intended purpose
The lessee is only entitled to use the leased property as agreed upon and, when parties have not made an agreement on this, to use it in conformity with the purpose for which it is intended by its nature.

Article 7:215 Changes to the leased property
- 1. The lessee is not entitled to change, in full or in part, the functional arrangement or shape of the leased property without a written consent of the lessor, unless it concerns changes and additives which at the end of the lease agreement can be made undone and removed without noteworthy costs.
- 2. Where the lease agreement concerns the use of a residential space and the planned changes shall not adversely affect the possibilities to lease out the property nor will they decrease its value, the lessor must give his consent within eight weeks.
- 3. If the lessor does not give his consent, then the lessee may claim in court to get authorised to carry out the planned changes himself. If the lessor is not also the owner, usufructuary or long leaseholder of the leased property, then the lessor ensures that the owner, usufructuary or long leaseholder is called in time to the legal proceedings as well. If the leased property is encumbered with a mortgage, then this obligation also exists towards the mortgagee.
- 4. The court shall in any case award the legal claim if the lessor should have given his consent pursuant to paragraph 2. In other situations the court shall only award the legal claim if the changes are necessary for an efficient use by the lessee of the leased property or they improve the enjoyment that the lessee may have of the leased property, always provided that the lessor cannot bring forward compelling objections against these changes.
- 5. The court may subject its authorisation to certain conditions or duties; upon the request of the lessor, it may also raise the rent if the changes give rise to that.
- 6. It is not possible to derogate to the disadvantage of the lessee from the previous paragraphs, unless it concerns the outside of the leased residential space.

Article 7:216 Right of removal and right of compensation
- 1. Up until the eviction the lessee is entitled to undo and remove the changes and additives he has introduced, provided that the leased property is brought back to a condition which at the end of the lease period reasonably can be regarded as being in conformity with its original state.
- 2. Before evicting the leased property the lessee does not need to undo or remove rightfully introduced changes or additives, notwithstanding the competence of the court to impose such a duty upon him on the basis of Article 7:215, paragraph 5.
- 3. With regard to rightfully introduced changes and additives that are not undone or removed after the lease period has ended, the lessee may claim a compensation from the lessor to the extend that such a compensation is claimable under Article 6:212 of the Civil Code [unjustified enrichment].

Article 7:217 Minor repairs
The lessee must, at his own expense, repair minor defects, unless it has become necessary to make these repairs because the lessor has failed to comply with his duty to remedy defects for which he is responsible (liable) [see Artice 7:240].

Article 7:218 Presumption of proof with regard to the liability of the lessee
- 1. The lessee is responsible (liable) for the damage caused to the leased property by a failure to comply with an obligation imposed on him by the lease agreement as far as this failure is attributable to him.
- 2. All damage is presumed to have been caused by an attributable failure as referred to in paragraph 1, except for damage caused by fire and, in case of a lease of constructed immovable property or a part thereof, damage at the outside of the leased property.
- 3. Without prejudice to Article 7:224, paragraph 2, the lessee is presumed to have received the leased property in an undamaged condition.

Article 7:219 Liability of the lessee for behaviour of third persons
In the same way as the lessee is responsibly (liable) towards the lessor for his own behaviour, he is responsible (liable) towards him for the behaviour of those who under his approval use the leased property or find themselves on (in) it.

Article 7:220 Urgent works and renovations
- 1. If it is necessary that during the lease period urgent works are carried out to the leased property or if the lessor must tolerate that during the lease period others use his property pursuant to Article 5:56 of the Civil Code to carry out such works on behalf of the adjoining premises, then the lessee must give opportunity to perform these works, without prejudice to his right to claim a reduction of the rent, to rescind the lease agreement and to claim a compensation for damages [always if this would be possible on these grounds according to the requirements set to this end by law].
- 2. Paragraph 1 shall apply accordingly when the lessor, with continuation of the lease, wants to proceed to a renovation of the constructed immovable thing to which the lease agreement relates, and he makes a proposal to this end that, in view of his own interests and of the interests of the lessee and possible sublessees, is reasonable. Such a proposal has to be made in writing. By a renovation is understood the demolition of the existing immovable thing followed by the construction of a newly built immovable thing, or a partial renewal of the existing immovable thing by changing it or by adding works or constructions to it.
- 3. If the renovation concerns ten or more dwelling houses or buildings used for retail purposes, which together form an architectural unity, then the proposal referred to in paragraph 2 is presumed to be reasonable when 70% or more of the lessees have agreed to it. A lessee who has not agreed with the proposal may, within eight weeks after the lessor has given notice in writing to him that 70% or more of the lessees have agreed to the proposal, ask the court to decide whether the proposal is reasonable or not.
- 4. The previous paragraphs do not deprive the lessor from his right to terminate the lease agreement on the ground that he needs the immovable thing urgently to make necessary renovations, as far as this can be brought under the legal grounds for termination which apply pursuant to law to a constructed immovable thing as to which the lease agreement relates.
- 5. If relocation (moving away) is necessary in connection with the proposed renovation, referred to in paragraph 2, third sentence, of a residential space as meant in Article 7:233, then the lessor must contribute in the costs which the lessee has to make with regard to the relocation (moving expenses).
- 6. The minimum contribution in the costs of relocation (moving expenses) and settling-in costs, to be made by lessees of separate dwellings as referred to in Article 7:234 and mobile homes and mobile home stands as referred to in Articles 7:235 and 7:236, will be determined by means of a Ministerial Decree of the Minister for Housing, Communities and Integration and will be amended each year, before 1 March, as far as the consumer price index (CPI) gives reason to do so. The amount mentioned in the first sentence shall be rounded off upwards or downwards to whole euros.
- 7. Contributions in or compensations for moving expenses and settling-in costs, provided by the municipality to the lessee, may be deducted from the contribution that the lessor has to pay pursuant to paragraph 6.

Article 7:221 Sublease
The lessee is entitled to grant a right of use of the leased property or of a part thereof to a third party, unless he had to assume that the lessor has reasonable objections against granting such a right of use to this third person.

Article 7:222 Duty to inform the lessor of defects
If the lessee has discovered defects in the leased property or if third persons disturb him in his enjoyment of the leased property or if they claim to have rights in the leased property themselves, then the lessee must notify the lessor immediately thereof, and failing in doing so, he has to compensate the damage that the lessor suffers due to this negligence.

Article 7:223 Duty to allow potential lessees or buyers to make a visit
When the lessor wants to lease out the leased property after the current lease agreement has ended or when he wants to sell the leased property to someone else, the lessee of that immovable property or of a part thereof, has to tolerate that the usual signs and posters are placed on or attached to the immovable property and he has to give opportunity to potential lessees or buyers to visit the property and to look around.

Article 7:224 Duty to return the leased property at the end of the lease
- 1. At the end of the lease the lessor is obliged to place the leased property at the disposal of the lessor.
- 2. When the lessee and lessor have made a description of the condition of the leased property, the lessee has to return the leased property in the same condition as in which it was accepted according to that description, with exception of rightfully added changes and additives and of what was destroyed or damaged by aging or normal use. If no description of the condition of the leased property was made, the lessee is presumed to have received the leased property in the condition as it is at the end of the lease, notwithstanding the right of the lessor to prove the contrary.

Article 7:225 No eviction in good time
Where the lessee unlawfully keeps hold of the leased property after the lease has ended, the lessor may, over the period that he misses the leased property, claim damages equal to the rent, without prejudice to his right to claim a higher compensation if this rent is not sufficient to cover all the damage suffered.

Section 7.4.4 Passage of the lease agreement when the leased property is transferred and the ending of the lease

Article 7:226 Passage of the lease at a transfer of the leased property
- 1. A transfer by the lessor of the property to which the lease agreement is related or the establishment or transfer by the lessor of an independent usufruct, long leasehold or right of superficies on the property to which the lease agreement is related, makes that the rights and obligations of the lessor derived from the lease agreement, that will become due and demandable as of this moment, pass to the acquiring party.
- 2. A transfer of the leased property by a creditor of the lessor is equated with a transfer by the lessor himself.
- 3. The acquiring party is only bound by those contractual provisions of the lease agreement that directly relate to the use of the leased property as granted by the lessor in exchange of the counter performance to be performed by the lessee.
- 4. Where the lease agreements relates to a constructed immovable thing or a part thereof or to a mobile home in the sense of Article 7:235 or a mobile home stand in the sense of Article 7:236, it is not possible to derogate from the previous paragraphs.

Article 7:227 Lease has priority over a later established real property right
In case of the establishment or transfer of a limited real property right on the leased property that is not covered by Article 7:226, paragraph 1, the limited proprietor is towards the lessee obliged to refrain himself from exercising his right as far as this would lead to an interference with the use which the lessee may make of the encumbered property [this applies also to a later vested mortgage on the leased property].

Article 7:228 End of the lease due to the expiry of the lease period or a termination
- 1. A lease agreement concluded for a fixed term ends on the expiry of that term, without a termination being necessary.
- 2. A lease agreement concluded or extended for an indefinite term ends by termination. When the lease agreement relates to immovable property, not being a residential space or a retail building, then the day on which the termination will take effect must be a day on which the rent has to be paid according to the lease agreement, taking into account a term of notice of at least one month.

Article 7:229 Consequences of the death of one of the parties
- 1. The death of the lessee or the lessor does not end the lease agreement.
- 2. When the estate (inheritance) of the deceased lessee is apportioned in accordance with Article 4:13 of the Civil Code [intestate succession] and the heirs of the lessee are not entitled to grant a right of use of the leased property to a third person, then the lease agreement may be terminated during six months after the death of the lessee by his heirs or his spouse or his registered partner, taking into account a term of notice of at least one month.
- 3. If the deceased lessee leaves behind two or more heirs, then the lessor is obliged to cooperate in the apportionment by the joint heirs of the rights and obligations out of the lease agreement to one or more of the heirs, unless the lessor has reasonable objections against one or more of the selected heirs. The first sentence does not apply if the estate (inheritance) of the deceased lessee is apportioned pursuant to Article 4:13 of the Civil Code [intestate succession].

Article 7:230 Actual continuation of the lease after it has ended
If the lessee, after the agreed lease period has expired, keeps making use of the leased property with permission of the lessor, then as a result, unless there turns out to be another intention, the lease agreement will be continued for an indefinite period of time, irrespective of the time for which it was entered into initially.

Article 7:230a Eviction at the end of the lease of constructed immovable property not being a residential space or a retail building
- 1. Where the lease agreement relates to constructed immovable property not being a residential space or a retail building, or to a part of such immovable property, the lessee may, at the end of the lease period, request the court to extend the period within which the eviction of the leased property must be completed. The application of the lessee must be lodged within two months after the day on which the leased property has to be evicted according to a written notice of eviction of the lessor.
- 2. Paragraph 1 is not applicable when the lessee has terminated the lease agreement himself, when he explicitly has given his consent to end the lease agreement or when he has been ordered by the court to evict the leased property because he as failed to comply with his obligations.
- 3. The lessor cannot demand that the lessee proceeds to an eviction before the end of the period referred to in paragraph 1. The lodging of an application by the lessee suspends his duty to proceed to an eviction of the leased property until the court has decided on his request by a final and binding judicial decision.
- 4. The court may only award the request of the lessee if the interests of the lessee and of the sublessee to whom the leased property or a part thereof has been subleased rightfully, will be more seriously damaged by the eviction than the interests of the lessee will be damaged by a continuation of the use of the leased property by the lessee. The request is nevertheless rejected if the lessor makes plausible that it cannot be expected of him that the lessee preserves his right to use the leased property or a part thereof because of improper use of the leased property, serious nuisance inflicted upon other users of the property or upon the lessor or because of a default of payment.
- 5. An extension of the period meant in paragraph 1 may be granted for a maximum period of one year after the lease agreement has ended. Upon the request of the lessee, this period may be extended two more times, each time for a maximum period of one year. The application for an extension of the period must be lodged at the latest one month before the expiration of the running period. Paragraph 3, second sentence, and paragraph 4, apply accordingly.
- 6. Where parties do not agree on the sum which the lessee has to pay for the use of the leased property or a part thereof during the extended period meant in the present Article, the court shall set this sum to an amount that, in view of the local rent sums, is reasonable. Upon the request of one of the parties, the court may to this point provide a provisional ruling. Other than that, the rights and obligations out of the lease agreement remain effective between the parties during the extended period meant in the present Article.
- 7. Where the court rejects the request of the lessee, it will determine the moment on which the leased property has to be evicted. Such a court order is considered to be a judgment to evict the leased property on the designated moment.
- 8. No appeal to a higher court is open against a judicial decision as meant in the present Article.
- 9. It is not possible to derogate to the disadvantage of the lessee from the provisions of the present Article.

Article 7:231 Rescission of the lease agreement by the court
- 1. The rescission of a lease agreement relating to constructed immovable property or to a mobile home in the sense of Article 7:235 or a mobile home stand in the sense of Article 7:236, on the ground that the lessee has failed to comply with his obligations, can only take place by judicial decision, except in the situation meant in Article 7:210, paragraph 2, of the Civil Code.
- 2. The lessor may rescind such a lease agreement himself by virtue of Article 6:267 of the Civil Code on the ground that certain behaviour in the leased property has lead to a disturbance of public order and, as a result, the leased property has been shut down by public authorities under Article 174a of the Municipality Act or under a Municipal Ordinance as meant in Article 174 of that Act or on the ground that certain behaviour in the leased property has been in violation of Article 2 or 3 of the Opium Act and, as a result, the concerned building has been shut down by public authorities under Article 13b of that Act or such a building has been shut down by public authorities under Article 17 of the Housing Act.
- 3. It is not possible to derogate to the disadvantage of the lessee from paragraph 1.

Section 7.4.5 Lease of residential spaces

Subsection 7.4.5.1 General provisions

Article 7:232 Applicability of statutory provisions and exceptions
- 1. This Section (Section 7.4.5) only applies to the lease of residential spaces.
- 2. This Section (Section 7.4.5) does not apply to lease agreements concerning the use of residential spaces which use by its nature is of short duration.
- 3. During the first nine months after the lease has taken effect, Articles 7:206, paragraph 3, 7:270, 7:271, paragraph 4, 7:272, 7:273, 7:274, 7:275, 7:276, 7:277 and 7:281 do not apply to the lease of a residential space which is not a separate dwelling of its own, but a part of a dwelling in which the lessor has his main residence, provided that in the past no residential spaces in this dwelling have been leased out already to this lessee.
- 4. Articles 7:206, paragraph 3, 7:269, paragraph 1 and 2, 7:270, 7:271 up to and including 7:277, 7:278, paragraph 1 and 2, and 7:281 do not apply to the lease of a residential space in a building which belongs to the municipality and which, at the moment of the conclusion of the lease agreement, is already intended for demolition.

Article 7:233 'Residential space'
By a 'residential space' is understood a constructed immovable thing as far as it has been leased out as a separate or dependent dwelling, or a mobile home or a mobile home stand, as well as their immovable accessories.

Article 7:234 'Separate dwelling'
By a 'separate dwelling' is understood a residential space that has its own access and that can be used by its occupant as a residence without having to revert to basic facilities outside the dwelling.

Article 7:235 'Mobile home'
By a 'mobile home' is understood a construction, intended to be used for occupation, that has been placed on a mobile home stand and that can be removed in full or in part, and for which a surroundings permit has been issued for a construction operation as meant in Article 2.1, paragraph 1, under point (a), of the Act on General Provisions for Surroundings Law.


Article 7:236 'Mobile home stand'
By a 'mobile home stand' is understood a plot of land, intended to place a mobile home on, where facilities are available that can be connected to the pipeline network for gas, water and electricity distribution of public or other institutions or of municipalities.

Article 7:237 'Lease price', rent' and 'service charges'
- 1. In this Section (Section 7.4.5) by 'lease price' is understood all obligations incumbent upon the lessee towards the lessor by virtue of the lease agreement.
- 2. By 'rent' is understood the price which is solely chargeable for the use and enjoyment of the residential space.
- 3. By 'service charges' is understood the compensation chargeable for provided goods and services in connection with the occupation of the residential space. By Order in Council goods and services may be pointed out for which the compensation must be regarded as service charges.

Article 7:238 'Rent committee'
By 'rent committee' is understood the rent committee meant in Article 3a of the Implementation Act Residential Rents.

Article 7:239 'Minister'
By 'Minister' is understood the Minister of Public Housing, Spatial Planning and the Environment.

Article 7:240 Minor repairs of residential spaces
By Order in Council [Decree on Minor Repairs] defects may be pointed out that have to be regarded as minor defects which under Article 7:217 must be repaired by the lessee himself and for his own account. It is not possible to derogate to the disadvantage of the lessee from provisions that have been enacted by virtue of the present Article.

Article 7:241 Order in Council for defects
By or pursuant to an Order in Council it will be determined which imperfections in any event shall be regarded as defects. It is not possible to derogate to the disadvantage of the lessee from provisions that have been enacted by virtue of the present Article.

Article 7:242 Semi-mandatory law for the lease of residential spaces
- 1. Except by means of a Standard Regulation as meant in Article 6:214 of the Civil Code*), it is not possible to derogate to the disadvantage of the lessee from the provisions of Articles 7:204, 7:206, paragraph 1 and 2, 7:207, 7:208 and 7:217, unless it concerns repairs of changes and additives to the leased property that were added by the lessee or defects in such changes and additives.
- 2. It is not possible to derogate to the disadvantage of the lessee from the provisions of Articles 7:216, paragraph 3, 7:224, paragraph 2, and 7:230.

*) Up until now no such Standard Regulation has been issued.

Article 7:243 Demanding energy saving measures
- 1. If a residential space in a constructed immovable property needs energy saving improvements as meant in paragraph 2, then the court may, upon the request of the lessee, order that the lessor must place such improvements at his own expense, provided that the lessee has declared that he is prepared to pay a reasonable rent increase in proportion to these costs. It is not possible to derogate to the disadvantage of the lessee from this provision.
- 2. The improvements meant in paragraph 1 are:
a. thermal insulation of external partition constructions;
b. thermal insulation of the construction which forms the partition with the crawl way;
c. a heater, placed on behalf of a heating system, with an induction efficiency of at least 80%, if the existing heater is at least ten years old.

Article 7:244 Subleasing of a residential space
Contrary to Article 7:221, the lessee of a residential space is not entitled to grant a right of use of the leased property or of a part thereof to a third party. The lessee of a separate dwelling who has his main residence in that dwelling is, however, entitled to grant a right of use of the leased property or of a part thereof to a third party.

Article 7:245 Implementation Act on Housing Rent
The Implementation Act on Housing Rent shall give more provisions for rents and other compensations.

Subsection 7.4.5.2 Rent and other compensations

§ 1. Rent

Article 7:246 Freedom of contract
The rent which parties have agreed upon shall apply to the lease of residential spaces, insofar nothing else results from this Subsection (Subsection 7.4.5.2).

Article 7:247 Liberalized residential spaces
With exception of Articles 7:249, 7:251, 7:259, 7:261, paragraph 1, and 7:264, the following Articles of this Subsection (Subsection 7.4.5.2) do not apply to a lease agreement related to a separate residential space with respect to which at the start of its occupation by the current lessee a rent applied or applies which, if necessary recalculated to an amount per year, is higher than the amount that has been determined under Article 3 paragraph 2 of the Implementation Act on Housing Rent, provided also that:
a. this agreement was concluded on or after 1 July 1994, or;
b. this agreement is related to a dwelling which was built on or after 1 July 1989.

Article 7:248 Indexation clause
- 1. The rent may be raised either on the basis of a contractual provision in the lease agreement which provides for such a rent increase or, if such a contractual provision is not stipulated or not effective, in the way provided for in Articles 7:252, 7:252a and 7:253. Articles 7:252 and 7:253 shall not apply during the effective existence of such a contractual provision. If such a contractual provision is no longer effective, the two aforementioned Articles shall become applicable as of twelve months after the moment on which this contractual provision has been made use of most recently.
- 2. Should the application of a contractual provision as meant in paragraph 1 lead to an increase of the rent for a higher percentage than the maximum rent increase percentage set by the Minister as meant in Article 10 paragraph 2 of the Implementation Act on Housing Rent, then this contractual provision is null and void insofar it would lead to this higher percentage. In that event the rent is considered to have been raised with the maximum rent increase percentage as set by the Minister.

Article 7:249 Request of the lessee addressed to the rent committee
Where the lessee has entered into a lease agreement with regard to a specific residential space for the first time, he may, up to six months after the moment on which this lease has become effective, request the rent committee to determine whether the agreed rent is reasonable.

Article 7:250 Change of the rent upon a request of the lessor or lessee
- 1. The rent may be raised upon the request of the lessor in the way prescribed in Articles 7:252, 7:252a and 7:253:
a. during the first period of twelve months after the day on which the lease has become effective: only once,
b. and furthermore each time at the end of each other succeeding period of twelve months as from the moment on which the rent increase as meant under point (a) has become effective or, when such a rent increase has not occurred, as from the day the lease itself has become effective.
- 2. An increase of the rent on the basis of paragraph 1 is not possible as long as the lessee and lessor have not come to an agreement over the defects in the residential space that have been identified under the application of Article 12 and 16 of the Implementation Act on Housing rent.
- 3. Contrary to paragraph 1, the rent may be raised at the end of a period which is so much shorter than twelve months as the preceding period has been longer than twelve months from the day on which the rent was raised for that period.
- 4. Upon the request of the lessee, the rent may be reduced in the way prescribed in Articles 7:252, 7:252b and 7:254.

Article 7:251 Rent increase at the most once a year
Any contractual provision in the lease agreement which might have the effect that the rent may be increased more than once during a period of twelve months is null and void, unless it concerns a situation as meant in Article 7:255.

Article 7:252 Written proposition to change the rent
- 1. A proposal to change the rent must be made in writing at least two months before the proposed day as of which the change shall take effect.
- 2. The proposal meant in paragraph 1 must at least mention:
a. the rent before it is changed;
b. the percentage or the amount of the change of the rent;
c. the proposed new rent;
d. the proposed day as of which the proposed new rent shall become effective;
e. the way how and the period within which the lessee, if he wants to object against the proposal, must show his objections as well as the legal effects which will enter pursuant to this Subsection (Subsection 7.4.5.2) if he does not make his objections known.
- 3. In making a proposal to reduce the rent an assessment of the quality of the residential space as meant in Article 10, paragraph 1, of the Implementation Act on Housing Rent must be submitted.
- 4. If an agreement to change the rent has come about as a result of a proposal made to this end, which proposal, however, was not in line with the requirements of paragraph 1, paragraph 2 under point (b), (d) or (e), or paragraph 3, then the previously applying rent remains chargeable, unless the person to whom the proposal was made appears not to have been harmed by the failure to comply with one or more of these requirements.

Article 7:252a Increase of rent related to the income of the lessee
- 1. A lessor may, in respect of a residential space which forms an separate dwelling, make a proposal as referred to in Article 7:252, with the purpose to increase the rent on the ground that the household income in the reference year:
a. is higher than the amount mentioned in Article 10, paragraph 2, first sentence, of the Implementation Act Rental Price Residential Spaces, but less than or equal to the amount mentioned under (b) of that paragraph, or;
b. exceeds the amount mentioned in Article 10, paragraph 2, first sentence, under (b), of that Act.
- 2. In the present Article the following words shall mean:
a. ‘basic registration income’: basic registration income as provided in Chapter IVA of the General Act on State Taxes;
b. ‘household income’: the total amount of the income data, referred to in Article 21, under (e) of the General Act on State Taxes, of the lessee and other occupants of a residential space, on the understanding that where an other occupant has not reached the age of 23 years on 1 January of the year in which the proposed date of the start of the proposed rent finds itself, the amount of the income data shall be taken into account only insofar as it is more than the result of 108% of twelve times the monthly amount referred to in Article 8, paragraph 1, under (a) a of the Minimum Wage and Minimum Holiday Allowance Act, as in force on 1 January of the reference year;
c. ‘inspector’: an officer of the national tax authority who is designated as such by regulation of the Minister of Finance;
d. ‘reference year’: the second calendar year preceding the calendar year in which the proposed date of the start of the proposed rent finds itself.
- 3. When a proposal as meant in paragraph 1 has been made, a declaration issued by the inspector to the lessor upon the latter’s request, is added to the proposal.
- 4. The declaration referred to in paragraph 3 indicates whether it is to be expected, at the place of the residential space designated by the lessor on the basis of data from the basic registration income at the moment of handling the request of the lessor by the inspector, that the household income in the reference year of the person or persons who live there according to the registration of the tax authorities, is less than or equal to the amount mentioned first in Article 10, paragraph 2, first sentence, under (a), of the Implementation Act Rental Price Residential Spaces, or is higher than that amount but less than or equal to the last mentioned amount in the aforementioned sentence under (a), or is higher than that amount. Furthermore, the declaration mentions, if the household income is higher than the amount mentioned first in Article 10, paragraph 2, first sentence, under (a), of the Implementation Act Rental Price Residential Spaces, the number of persons on which the household income is based. When there are no income data available in the basic registration income, the declaration shall mention this. Further rules may be set by regulation of the Minister of Finance for the implementation of the present paragraph and on the ability to make a request, the request itself, the issuance of the declaration, and as regards the lessor.
- 5. If an agreement on changing the rental price has come about on account of a proposal for that purpose that does not meet the requirements of paragraph 3, then the increase of the rental price on the basis of a proposal as meant in paragraph 1 is not possible, unless it appears that the lessee has not been harmed by the omission.
- 6. An agreement on changing the rental price:
a. resulting from a proposal referred to in paragraph 1, opening words and under (a) and (b), does not come about (has no effect) if the lessee can show that he or another member of the household is part of a group to be determined by regulation of the Minister;
b. resulting from a proposal referred to in paragraph 1, opening words and under (a), does not come about (has no effect) if the lessee can show that the household income in the calendar year following the reference year is equal to or less than the amount mentioned first in Article 10, paragraph 2, first sentence, under (a), of the Implementation Act Rental Price Residential Spaces, and;
c. resulting from a proposal referred to in paragraph 1, opening words and under (b), does not come about (has no effect) if the lessee can show that the household income in the calendar year following the reference year is equal to or less than the amount mentioned in that sentence under (b). This proposal is considered to be a proposal referred to in paragraph 1, opening words and under (a), unless the lessee can show as well that the household income in the calendar year following the reference year is equal to or less than the amount mentioned first in that sentence under (a).

Article 7:252b Decrease of rent related to a decrease in income of the lessee
- 1. Without prejudice to Article 7:252a, paragraph 6, a lessee may in regard of a residential space which forms a separate dwelling and in regard of which an increase of the rental price has taken place on the basis of Article 7:252a, paragraph 1, submit a proposal referred to in Article 7:252, with the purpose to decrease the rental price on the ground that the household income referred to in Article 7:252a, paragraph 2, under (b), where the aforementioned increase was based on, has lessened and with that:
a. has become equal to or less than the amount mentioned in Article 14, paragraph 1, of the Housing Allowance Act;
b. has become equal to or less than the amount mentioned first in Article 10, paragraph 2, first sentence, under (a), of the Implementation Act Rental Price Residential Spaces, or
c. has become more than the amount referred to under (b) but equal to or less than the amount mentioned in Article 10, paragraph 2, first sentence, under (b), of the Implementation Act Rental Price Residential Spaces.
- 2. If a proposal referred to in paragraph 1 has been made, the lessee shall provide the relevant data related to the household income. Which data the lessee shall have to provide in such case, shall be determined by a regulation of the Minister.
- 3. If an agreement on changing the rental price has come about on account of a proposal to that effect, which does not meet the requirements of paragraph 2 , then a decrease of the rental price on the basis of a proposal referred to in paragraph 1, is not possible, unless it appears that the lessor has not been harmed by the omission.

Article 7:253 Objections against a proposal to increase the rent
- 1. If the lessee, prior to the date on which the increase of the rental price should have taken effect according to the proposal of the lessor, declares in writing that he does not agree with that proposal, then the lessor may up to six weeks after that date, under submission of a duplicate of his proposal and of the aforementioned written declaration of the lessee, request the rent committee to determine whether his proposal to increase the rent is reasonable. If the lessor has made a proposal as referred to in Article 252a, paragraph 1, and the declaration referred to in the first sentence refers to the household income, then the lessor requests the inspector for a second declaration as referred to in Article 252a, paragraph 4. If a request is made as referred to in the first sentence, the lessor shall also submit the second declaration.
- 2. During three months after the day referred to in paragraph 1, the lessee may request the rent committee to give its decision on the reasonableness of the proposal of the lessor:
a. if he has not made a written declaration prior to the date mentioned in paragraph 1, first sentence, nor has created the impression by paying the proposed increase of the rent, to agree with that increase, and;
b. the lessor has informed him about the proposal once again within six weeks after the date referred to in paragraph 1 by registered letter to which a duplicate of the proposal has been added, and he has not agreed with the proposal to increase the rent. When making his request to the rent committee, the lessee must submit a duplicate of the proposal and of that registered letter and, where the lessor has made a proposal referred to in Article 7:252a, paragraph 1, and the household income is the subject of the disagreement, data relating to that household income. Paragraph 1, third sentence, applies accordingly.
- 3. The lessee is presumed to have come to an agreement with the lessor over the proposed increase of the rent as of the proposed day on which the increase takes effect according tot the proposal, when he, after he has received the registered letter meant in paragraph 2 under point (b), has not addressed a request to the rent committee within three days after the day from which the increase shall take effect according to the proposal of the lessor.
- 4. When the lessee makes a request meant in paragraph 2, the rent committee shall inform the lessor immediately of it.
- 5. When the lessor has made a proposal as meant in Article 7:252, paragraph 1, or Article 7:252a, paragraph 1, by registered letter, and the requirements of paragraph 2, under (a), have been met, the lessor may within six weeks after the day referred to in paragraph 1, first sentence, request the rent committee to give its decision about the reasonableness of the proposal. When making his request to the rent committee, the lessor must submit a duplicate of his proposal and a proof that it has been made by registered letter to the lessee.

Article 7:254 Decrease of the rent
If the lessor does not agree with a proposal of the lessee to reduce the rent, then the lessee may, up to six weeks after the day as of which the reduction should have become effective according to his proposal, request the rent committee to give its decision about the reasonableness of the proposal.

Article 7:255 Increase of the rent after a housing improvement
- 1. The rent of a residential space in which or to which during the lease period by or because of the lessor:
a. facilities have been placed which are related to measures intending to lift or reduce restrictions which a disabled person encounters when using the residential space in a normal way, for the expenditures of which a statutory regulation only grants a partial financial compensation, or;
b. changes or additives have been added for another reason than to remedy defects as meant in Article 7:204, through which the residential comfort is regarded to have been improved and which are not covered already by the provision under point (a),
equals the agreed rent, multiplied with an amount which is in reasonable proportion to the costs of these facilities, changes or additives, made by the lessor, on the understanding that the total rent cannot be higher than the rent which under Article 10 paragraph 1 of the Implementation Act on Housing Rent is regarded as reasonable.
- 2. If parties have not come to an agreement over the amount of the increase, then each of them may request the rent committee, within three months after the facilities, changes or additives have been brought about, to give its decision about the amount of the increase.
- 3. By a disabled persons, as referred to in paragraph 1, is understood a person who experiences perceptible restrictions as a result of a disease or disorder.

Article 7:256 [repealed on 01-04-2007]

Article 7:257 Maintenance procedure
- 1. The legal claim (right of action) of the lessee to request a reduction of the rent on the basis of Article 7:207, paragraph 1, in connection with Article 7:242, is subject to a peremptory time limit of six months after the day following the one on which the lessee has informed the lessor about the defect, taking into account as well the following paragraphs.
- 2. Where the legal claim (right of action) of the lessee is based on a non-performance of the lessor which by virtue of Article 7:241 is regarded as a defect, the lessee may not only file his claim at the court within the period meant in paragraph 1, but he may instead as well request the rent committee to give its decision about the reduction of the rent in accordance with the Order in Council meant in Article 16 paragraph 2 of the Implementation Act on Housing Rent, which request must be made within six months after the day following the one on which the lessee has informed the lessor about the defect. The lessee may only address such a request to the rent committee if the lessor has not remedied the defect within six weeks after the day following the one on which he was informed about the defect by the lessee.
- 3. After the expiration of the six month period meant in the previous paragraphs, no reduction of the rent can be requested, as far as it concerns the past, over a period longer than six months prior to the moment on which the legal claim was filed at the court or on which the request was made to the rent committee.

§ 2. Other compensations

Article 7:258 All-in lease price
If the lease agreement includes more than just a right of use of a residential space, but it only mentions the overall lease price and not the rent, then the rent committee may, upon the request of the lessee, determine both, the rent as well as the amount payable in advance as service charges. Such a request may be lodged also by the lessor if the agreed lease price is less than 55 % of the maximum rent limit under Article 10 paragraph 1 of the Implementation Act on Housing Rent.

Article 7:259 Service charges
- 1. The obligation of the lessee to pay service charges goes up to the amount as agreed upon by the lessee and the lessor or, when they fail to come to terms on it, to the amount that is in line with the applying statutory provisions or with what can be regarded as a reasonable compensation for the provided goods and services.
- 2. Each year, at the latest six months after the expiration of a calendar year, the lessor hands over to the lessee an overview of the charged service charges, itemized to their components, with indication of the way that they are calculated. If costs have been charged to the lessor that do not affect a calendar year, but another period of twelve months, being a financial year that ends in the expired calendar year, then the lessor shows the costs over that other period in the overview of the expired calendar year.
- 3. The overview meant in paragraph 2 relates at the end of the lease agreement to the period of the calendar year that already had expired at that moment.
- 4. When asked for at the end of the lease agreement, the lessor must offer the lessee the possibility, after the overview meant in paragraph 2 has been handed over, to inspect the books and other supporting documents or duplicates thereof underlying this overview.

Article 7:260 Service charge procedure
- 1. If the lessee and lessor have not come to terms on the obligation of the lessee to pay service charges, then the lessee or lessor may request the rent committee to give its decision about this issue.
- 2. The request is related to one period of no longer than twelve months for each cost category to which the request is related. The request can be made up to twenty-four months after the moment on which the period for handing over an overview by the lessor as mentioned in Article 7:259, paragraph 2, has expired.

Article 7:261 Advance payment of service charges
- 1. Unless parties have agreed otherwise after the lease agreement has taken effect, the services charges, payable by the lessee in advance under the lease agreement or a judicial decision, can only be raised:
a. as of the day following the end of the term of payment during which an additional provision of goods or services has been agreed upon or as of the start of the term of payment during which these additional provision of goods or services shall take effect;
b. as of the day following the end of the term of payment during which the last overview, meant in Article 7:259, has been handed over to the lessee, on the understanding that each overview can only once lead to an increase.
- 2. The lessee is bound by a change in the provided goods or services and to an adjustment of the amount of the advance payment that goes with it, if that change is related to goods or services that can only be provided jointly to a number of lessees, and at least 70% of those lessees have agreed with this change. A lessee who has not agreed with the change in the provided goods or services may, within eight weeks after the written notification of the lessor that he has come to an agreement over this change with at least 70% of the lessees, demand a decision of the court with regard to the reasonableness of the proposal.
- 3. If the advance payment due by the lessee is considerably higher than the to be expected service charges, then the rent committee may reduce the amount of the advance payment upon the request of the lessee to an amount which is in reasonable proportion to those service charges.

§ 3. Final provisions

Article 7:262 Legal claim (right of action) to be filed at the Subdistrict Court
- 1. When the rent committee has given its decision on a request of the lessee or lessor as meant in § 1 and § 2 of this Subsection (Subsection 7.4.5.2), the lessee and lessor are presumed to have come to an agreement with each other over what has been determined in this decision, unless one of them has demanded a judgment of the Subdistrict Court on the issue about which the rent committee was requested to give its decision, which legal claim must be filed at the Subdistrict Court within eight weeks after a duplicate of the decision of the rent committee was sent to the parties.
- 2. No appeal to a higher court is open against a judgment of the Subdistrict Court rendered under the present Article

Article 7:263 Commencing date of the increased or reduced rent
An increase or reduction of the rent, assessed by a decision of the rent committee or a judgment of the court, may be charged as from the day on which the increase or reduction should have taken effect according to the proposal of the lessor or lessee or, when the rent is changed without a proposal has been made to this end, as from the day on which the rent committee has been asked to give its decision on it or as from the day on which the legal claim has been filed at the Subdistrict Court to obtain a judgment on it. Where the decision of the rent committee or the judgment of the Subdistrict Court mentions a later day as of which the increase or reduction of the rent may be charged, this day will be the commencing day for the rent increase or rent reduction.

Article 7:264 Stipulated unreasonable advantage for one of the parties or a third person
- 1. Each contractual provisional about something differently than the rent, stipulated in relation with the conclusion of a lease agreement on a residential space, is null and void, insofar it grants an unreasonable advantage to one of the parties.
- 2. Each contractual provision stipulated in relation with the conclusion of a lease agreement in relation to a residential space, is null and void, insofar it grants an unreasonable advantage to a third person or insofar it compels a third person to grant an unreasonable advantage.

Article 7:265 Mandatory law
It is not possible to derogate from the provisions of this Subsection (Subsection 7.4.5.2), unless these provisions imply differently.

Subsection 7.4.5.3 Joint lease and continuation of the lease agreement

Article 7:266 Joint lease of the spouse or registered partner
- 1. The spouse or registered partner of the lessee is by operation of law a co-lessee, as long as the leased residential space is the main residence of the spouse or registered partner, irrespective whether the marriage or registered partnership was entered into before or after the lease agreement.
- 2. The spouse or registered partner is towards the lessor joint and several liable for the obligations arising from the lease agreement, except as far as these obligations were already due and demandable before the spouse or registered partner became a co-lessee.
- 3. If the lease agreement has come to an end for the lessee, then the co-lessee automatically becomes the lessee.
- 4. If the spouse or registered partner meant in paragraph 1 does not have the use of the leased marital residence, either pursuant to a judicial decision as referred to in Article 826, paragraph 1 under point (a) of the Code of Civil Procedure, or pursuant to a mutual request for a divorce or legal separation or pursuant to the ending of the registered partnership, then this does not lead to a change of his main residence for the purpose of the present Article.
- 5. In the event of a divorce or legal separation or the ending of registered partnership the court may, upon the request of a spouse or registered partner, ascertain who of the spouses or registered partners will be the lessee of the residential space. The court determines as well the commencing day of the lease agreement with this spouse or registered partner. On the same day the lease agreement with the other spouse or registered partner has ended.

Article 7:267 Joint lease of other persons living together
- 1. When the lessee and another person who has his main residence in the leased residential space and with whom the lessee runs a joint household, have together requested the lessor if this other person may become a co-lessee, and the lessor has not agreed with this request within three months in writing, then the lessee and this other person may jointly claim in court that this other person will become a co-lessee as of a day to be determined in the judgment of the court. If the residential space is not only the main residence of the lessee and this other person, but also of a co-lessee, then the request to the lessor as wel as the legal claim in court must be made jointly by the lessee, the co-lessee and the other person who wants to become a co-lessee too.
- 2. After a request has been made to the lessor as meant in paragraph 1, the court can no longer award a legal claim to rescind the lease agreement as far as it is filed on the ground that the lessee, in violation of what was agreed upon, runs together with this other person a joint household in the leased residential space. Neither can this then be a ground for termination of the lease agreement.
- 3. The court may only reject the legal claim meant in paragraph 1:
a. if the person meant in paragraph 1 does not have his main residence in the leased residential space for at least two years or if he does not run a joint household with the lessee in this residential space for at least two years;
b. if, also with regard to what has been ascertained about the joint household and its duration, the legal claim apparently just has the purpose to grant the person meant in paragraph 1 the quality of co-lessee on a short term;
c. if the person meant in paragraph 1 provides, from a financial point of view, insufficient certainty that he is able to comply with his obligation to pay the rent properly.
- 4. The person who has entered into the lease agreement and every person that has become a lessee or co-lessee by virtue of the present Article, are joint and several liable towards the lessor for all obligations arising from the lease agreement, on the understanding that a co-lessee is not liable for obligations which were already due and demandable before he became a co-lessee.
- 5. Contractual and statutory provisions concerning the end of the lease agreement apply to all persons meant in paragraph 4 separately, on the understanding that a person in any case loses his quality of co-lessee if he no longer has his main residence in the leased residential space. If the lease agreement has come to an end for the lessee, then the co-lessee automatically becomes the lessee.
- 6. If Chapter II of the Housing Act applies to a residential space, then contrary to paragraph 5 the co-lessee only continues the lease if the court has decided so on a legal claim, filed for this purpose within eight weeks after the moment on which he has become a lessee, and in any event as long as no final and binding judgment has been given on this legal claim. The court may only reject the legal claim if the person who has filed it, does not submit a housing license that is to be issued to himself, as meant in Article 7 paragraph 1 of the Housing Act.
- 7. Each of the persons meant in paragraph 4 may claim in court that one or more of these persons shall no longer continue the lease agreement as of a day to be determined in the court's judgment. The court may only grant the claim if, in fairness and with due observance of the specific circumstances, this is necessary, on the understanding that it must grant the claim if the plaintiff shows that the person to which the legal claim relates has acquired the quality of co-lessee on the basis of a request to the lessor that was not made by the plaintiff also or on the basis of a legal claim in court as meant in paragraph 1 that was not filed by the plaintiff too.

Article 7:268 Position of the co-lessee and other occupants after the death of the lessee
- 1. Upon the death of the lessee, the co-lessee automatically continues the lease agreement as being the lessee. He may terminate the lease agreement within six months after the death of the deceased lessee by bailiff's notification or registered letter, ending the lease as of the first day of the second month after the termination was announced.
- 2. A person who has his main residence in the leased residential space and with whom the deceased lessee had run a joint household, but who has not become a lessee by virtue of paragraph 1, continues the lease agreement for six months after the death of the deceased lessee; the second sentence of paragraph 1 applies to him as well. He continues the lease agreement also afterwards, if the court has ordered so on a legal claim filed within that period for this purpose and at least during the legal proceedings as long as the court has not given a final and binding judgment on his legal claim.
- 3. The court must reject the legal claim meant in paragraph 2:
a. if the plaintiff has not made plausible that he meets the requirements of paragraph 2;
b. if the plaintiff, from a financial point of view, provides insufficient certainty that he is able to comply with the lease agreement;
c. if Chapter II of the Housing Act applies to the leased residential space and the plaintiff fails to submit a housing license that is issued to himself as meant in Article 7 paragraph 1 of the Housing Act.
- 4. Paragraph 4, paragraph 5, first sentence and paragraph 7 of Article 7:267 apply accordingly to the co-lessee or other occupant meant in the present Article.
- 5. Where it is ascertained that a person has wrongly claimed the continuation of the lease agreement on the basis of the present Article, he remains over the time during which he has had the enjoyment of the residential space liable towards the lessor for the compliance with the lease agreement that would have applied to him if he had been a lessee. When two or more persons have wrongly claimed the continuation of the lease agreement, each of them is joint and several liable towards the lessor.
- 6. When there are no persons to continue the lease agreement on the basis of the present Article, then this agreement ends at the end of the second month after the death of the deceased lessee. The heirs of the deceased lessee are entitled to terminate the lease agreement at the end of the first month after the death of the deceased lessee. When the estate (inheritance) of the deceased lessee is apportioned in accordance with Article 4:13 of the Civil Code [intestate succession], the right of the heirs to terminate the lease agreement meant in the previous sentence belongs to the spouse or registered partner of the deceased lessee.
- 7. It is not possible to derogate from this Article to the disadvantage of the persons to whom a right of continuation of the lease agreement is granted under this Article, nor to the disadvantage of the heirs or the spouse or registered partner of the deceased lessee meant in paragraph 6.
- 8. It is not possible to derogate from Article 7:229, paragraph 1 and 3.

Article 7:269 Protection of the sublessee of a separate dwelling
- 1. A sublease agreement related to a separate dwelling where the sublessee has his main residence, is continued by the lessor in the event that the lease agreement between the lessee and lessor ends.
- 2. Within six months after the lessor has continued the sublease agreement pursuant to paragraph 1, he may claim in court that the sublease agreement shall end as of a day to be mentioned in the judgement of the court on the ground that:
a. the sublessee, from a financial point of view, provides insufficient certainty that he is able to comply with the sublease agreement;
b. the sublease agreement has been concluded with the apparent purpose to grant the sublessee the quality of lessee;
c. in the given circumstances to standards of reasonableness and fairness, taking into account also the usual content of lease agreements related to similar residential spaces and the content of the lease agreement between the lessee and lessor that has ended, as well as the content of the continued sublease agreement, it cannot be expected of the lessor that he continues the sublease agreement with the sublessee;
d. Chapter II of the Housing Act applies to the leased residential space and the sublessee fails to submit a housing license that is issued to himself as meant in Article 7 paragraph 1 of the Housing Act.
- 3. Where a sublease agreement relates to a residential space, regardless whether this is a separate or a dependant dwelling, the person who on the basis of Articles 7:266, 7:267 or 7:268 has become the lessee or has continued the lease agreement, continues the sublease agreement with the sublessee.

Article 7:270 Exchange of houses
- 1. The lessee who wishes to bring about an exchange of houses, may claim in court to get authorized to make someone else instead of himself the lessee of the residential space which he has leased. If Chapter II of the Housing Act applies to the residential space he has leased, then he must submit a housing license as meant in Article 7 paragraph 1 of the Housing Act that is issued to the proposed lessee who will take his place.
- 2. The court decides in consideration of the specific circumstances, on the understanding that it may award the claim only if the lessee has a compelling interest in the exchange of houses, and that it rejects the claim if the proposed lessee, from a financial point of view, provides insufficient certainty that he is able to comply with the lease agreement properly. The court may, in addition, subject its authorisation to certain conditions or impose specific instructions on the lessee or on the proposed lessee who will take his place.
- 3. It is not possible to derogate to the disadvantage of the lessee from the present Article.

Article 7:270a Information duty
In the event that a lease agreement is continued pursuant to Articles 7:266, 7:268 or 7:269, the person who continues the lease agreement is obliged to inform the lessor about this.

Subsection 7.4.5.4 The end of a lease agreement

Article 7:271 Termination of the lease of a residential space
- 1. Contrary to Article 7:228 paragraph 1, a lease agreement related to a residential space that has been entered into for a fixed term does not end on the expiry of the lease period; it may be terminated by each of the parties by means of a notice of termination taking effect as of a termination date which is an agreed rent payment day, not being a date before the moment on which the fixed lease period has expired.
- 2. A lease agreement related to a residential space that has been entered into or continued for an indefinite term may be terminated by each of the parties by means of a notice of termination taking effect as of a termination date which is an agreed rent payment day.
- 3. The notice of termination effectuating the termination must be a bailiff's notification or a registered letter. Where pursuant to Article 7:266 the spouse or registered partner of the lessee is a co-lessee, the notice of termination must be addressed to both spouses or both registered partners separately.
- 4. The notice of termination by the lessor must, under penalty of nullity, mention the grounds which have lead to the termination. A termination by the lessor based on other grounds than those mentioned in Article 7:274 paragraph 1, is null and void. The lessee must be asked in the notice of termination to report within six weeks to the lessor if he does or does not agree with the ending of the lease agreement.
- 5. In terminating the lease agreement the following time periods must be observed:
a. if the lessee terminates the agreement: a term of notice that is as long as the period between two succeeding rent payment days set under the lease agreement, yet not shorter than a month and not longer than three months;
b. if the lessor terminates the agreement: a term of notice not shorter than three months, which is extended with one month for each year that the lessee has continuously had the use of the leased property under the lease agreement, but never longer than six months.
- 6. A termination in violation of paragraph 1, paragraph 3 or paragraph 5 under point (a), and a termination on the basis of a shorter term of notice than ordered in paragraph 5 under point (b), are nevertheless regarded as a valid termination, but then as of an effective termination date that as such is set by law and under observance of the term of notice that as such is set by law.
- 7. Each contractual provision indicating that the lessee has to observe a longer term of notice than the one meant in paragraph 5 under point (a) or that the lessor enjoys a shorter term of notice than the one meant in paragraph 5 under point (b) or derogating from any other provision of the present Article, is null and void. Each contractual provision ending the lease agreement without a prior termination, is null and void.
- 8. The present Article has no relevance if the lease agreement is ended with mutual consent of the parties at a moment on which the lease agreement already had been entered into with binding effect for both parties.

Article 7:272 Legal effect of a termination (claim in court of the lessor)
- 1. As of the day on which a lease agreement related to a residential space has been validly ended by termination, it remains in force by operation of law until the court has given a final and binding judgment on a legal claim of the lessor as meant in paragraph 2.
The previous sentence does not apply when the lessee has terminated the lease agreement or when he has agreed with its ending in writing after it was terminated by the lessor.
- 2. When the lessor has not received, within six weeks after the effective termination date, a written notification of the lessee that the lessee agrees with the ending of the lease agreement, then the lessor may claim in court, on the grounds mentioned in the notice of termination, that the court will determine the day on which the lease agreement shall end.


Article 7:273 Legal effects when the legal claim of the lessor is rejected or granted
- 1. In giving a judgment on a legal claim meant in Article 7:272 paragraph 2, the court may only consider the grounds mentioned in the notice of termination.
- 2. If the court rejects the legal claim of the lessor, then the lease agreement is extended by operation of law. The court decides whether the lease agreement is extended for an indefinite term or for a fixed term.
- 3. If the court awards the legal claim of the lessor, then it will also determine the day on which the leased property must be evicted by the lessee. This decision is considered to be a judgment in which the lessee is condemned to evict the leased property on that day.

Article 7:274 Grounds for termination of the lease of residential spaces
- 1. The court may only award a legal claim of the lessor meant in Article 7:272 paragraph 2 :
a. if the lessee has not behaved himself as a good lessee should;
b. if the lessor has based his legal claim on a contractual clause as defined in paragraph 2 and the requirements of that paragraph are met, unless the lessor no longer has an interest in the eviction of the leased residential space;
c. if the lessor makes plausible that he is so urgently in need of the use of the leased residential space himself, for another reason than to alienate it, that to standards of reasonableness and fairness, taking into account the interests of both parties and of possible sublessees, it cannot be expected of him to continue the lease agreement any longer, and it appears that the lessee, with exception of the lessee referred to in paragraph 4, is able to obtain another appropriate dwelling;
d. if the lessee does not accept a reasonable offer to enter into a new lease agreement related to the same residential space, as far as, in the event that Subsection 7.4.5.2 applies to the terminated lease agreement, this offer does not imply a change of the rent or of the service charges;
e. if the lessor wants to realize a specific use of the leased property in accordance with a valid land use plan;
f. if the lease agreement relates to a dependant residential space, which forms a part of the dwelling in which the lessor has his main residence, and the lessee makes plausible that his interest in ending the lease agreement weighs more heavily than the interest of the lessee in continuing it.
- 2. In the event that the lessor has explicitly stipulated in the lease agreement that the leased residential space must be evicted after a period of time mentioned in the relevant contractual clause, he may, in accordance with paragraph 1 under point (b), ground his legal claim on such a contractual clause:
a. if he has never lived in the residential space himself and he never has leased it out earlier, and he wants to take up residence there himself after that period of time;
b. if he was the previous occupant of the leased residential space himself and he wants to take up residence there again after that period of time;
c. if he has granted the previous lessee the right to take up residence again in the leased residential space after that period of time and he wants to give this lessee access to the property.
- 3. The need of the lessor to use the leased residential space himself in the sense of paragraph 1 under point (c) also exists:
a. if he wants to renovate the leased residential space and this is not possible without ending the lease agreement or;
b. if he wants to give a disabled person the opportunity to take up residence in the leased residential space, provided this is a separate dwelling that:
1°. already at its construction was functionally arranged and intended to be occupied by a disabled person, or
2°. after its construction has been made fit for occupation by a disabled person with financial support on the basis of a statutory regulation;
c. if he wants to give an elderly person the opportunity to take up residence in the leased residential space, provided this is a separate dwelling that forms a part of a residential estate which already at its construction was functionally arranged and intended to be occupied by elderly people;
In answering the question if another residential space is an appropriate dwelling for the lessee, the court pays no attention the contributions of the State which the lessee may obtain as a compensation for the rent or costs he has to pay for the use of a residential space.
- 4. The need of the lessor to use the leased residential space himself in the sense of paragraph 1 under point (c) also exists when he wants to give a student the opportunity to take up residence in the leased residential space if:
1°. that residential space by virtue of the lease agreement is intended for students as meant in this paragraph;
2°. the lessee, against whom a legal claim as referred to in paragraph 1 has been filed, has not complied with a written request of the lessor, which can be made annually, to hand over within three months a copy of proof of his registration at an institution, a university or college as meant in this paragraph for the current college year, and
3°. the lease agreement with the lessee against whom a legal claim as referred to in paragraph 1 has been filed, stipulates that the residential space, after this lease agreement has ended, shall be leased out again to a student as meant in this paragraph.
In this paragraph by a student is understood: a participant who is registered at an institution as meant in Article 1.1.1, component (b) of the Adult and Vocational Education Act or a student who is registered at a university or college as meant in Article 1.2, components (a) and (b) of the Act on Higher Education and Scientific Education.
- 5. A legal claim, based on the need of the lessor to use the leased residential space himself in the sense of paragraph 1 under point (c), is not awardable:
a. If Chapter II of the Housing Act applies to the involved residential space, as long as the lessor has not submitted a housing license that is issued to himself as meant in Article 7 paragraph 1 of the Housing Act, except when the need of the lessor to use the leased residential space himself encloses something else than habitation;
b. if the lessor is the legal successor of the previous lessor and the termination has occurred within three years after the legal succession has been notified in writing of the lessee.
- 6. In the situations meant in paragraph 1 under point (a) and point (d), the court may, before it awards the legal claim, grant the lessee a term of at the most one month to comply with his obligations still or to accept the offer after all.
- 7. By a disabled person as meant in paragraph 3 is understood a person who experiences perceptible restrictions as a result of a disease or disorder.

Article 7:275 Moving expenses and settling-in costs
- 1. When the court decides to award the legal claim to end the lease agreement on the grounds for termination specified in Article 7:274, paragraph 1 under point (c) and (e), it may assess an amount which the lessor has to pay to the lessee as compensation for moving expenses and settling-in costs which the lessee has to make.
- 2. Before the court gives a decision in which this amount is determined, it may announce its intention to both parties and set a period of time within which the lessor may withdraw the termination. If the lessor uses this right of withdrawal, then the court shall only give a judgment concerning the costs of proceedings.
- 3. Where the lease agreement has been terminated on the grounds specified in Article 7:274, paragraph 1, under point (c), in connection with Article 7:274, paragraph 3, under point (a) and Article 7:274, paragraph 1, under point (e), the lessor contributes in the costs which the lessee has to make with regard to the relocation (moving expenses).
- 4. The minimum contribution in the costs of relocation (moving expenses) and settling-in costs, to be made by lessees of separate dwellings, mobile homes and mobile home stands, will be determined by means of a Ministerial Decree of the Minister for Housing, Communities and Integration and will be amended each year, before 1 March, as far as the consumer price index (CPI) gives reason to do so. The amount mentioned in the first sentence shall be rounded off upwards or downwards to whole euros.
- 5. Contributions in or compensations for moving expenses and settling-in costs, provided by the municipality to the lessee, may be deducted from the contribution that the lessor has to pay pursuant to paragraph 4.

Article 7:276 Liability when the lessor was not urgently in need to use the residential space himself
- 1. If the lessor has terminated the lease agreement on the ground meant in Article 7:274, paragraph 1 under point (c), and the lessee has agreed on this basis with the ending of the lease or the legal claim of the lessor to end the lease agreement on that ground has been awarded by the court, then the lessor is liable towards the lessee for damages if it appears that the lessor in reality never has been urgently in need of the use of the leased residential space himself.
- 2. Subject to counter-evidence, the lessor is regarded never to have been urgently in need of the use of the leased residential space himself, if he does not permanently uses the residential space himself within one year after the lease agreement was ended.
- 3. If the court awards a legal claim of the lesser to end the lease agreement on the ground of termination meant in Article 7:274, paragraph 1 under point (c), it may, upon the request of the lessee or of its own motion, set an amount which the lessor has to pay to the lessee if it has become apparent afterwards that the lessor in reality never has been urgently in need of the use of the leased residential space himself, notwithstanding the right of the lessee to claim further damages.
- 4. The legal claim for compensation which the lessee may have by virtue of the present Article becomes prescribed five years after the lease agreement has ended.
- 5. In the situations meant in the previous paragraphs, the lessor has to pay compensatory damages as well to sublessees to whom the leased residential space or a part thereof was rightfully subleased or who were entitled to continue their agreement with the main lessor by virtue of Article 7:269. The previous paragraphs apply in that event accordingly.

Article 7:277 End of the lease agreement after it has been extended
- 1. If the court has extended the lease agreement, then the lessor may terminate it again with due observance of Article 7:271 and the terms of notice mentioned in paragraph 2 of the present Article and he may file a legal claim in accordance with Articles 7:272 up to and including 7:274 in which he asks the court to set the date on which the lease agreement shall end.
- 2. If the court has extended the lease agreement for an indefinite term, then the lessor cannot terminate it again before three years have expired since the day on which this judgment has become final and binding. If the court has extended the lease agreement for a fixed term, then the lessor may terminate it again, but no sooner than three months before the end of the fixed term with which it was extended.

Article 7:278 Legal effects of the end of the main lease agreement for a sublessee
- 1. A sublease agreement with respect to a residential space that could not be continued on the basis of Article 7:269 after the main lease agreement has been ended by the main lessor, ends on the day on which the main lessee must evict the residential space according to a judgment of the court on a legal claim of the main lessor filed on the basis of Article 7:273, paragraph 3.
- 2. If the main lessee has not watched over the interests of the sublessee sufficiently when the main lease agreement was ended or when the date was set on which he must evict the residential space, then he is obliged to compensate the damage which the sublessee has suffered as a result.
- 3. The main lessee against whom the main lessor has filed a legal claim which affects the interests of the sublessee, is entitled to call the sublessee to court.

Article 7:279 Rescission of a lease agreement with respect to a condemned or dangerous dwelling
- 1. If the part of the leased residential space that the lessee and his family necessarily have to use for occupation is unfit for habitation due to a defect in the sense of Article 7:204 or if repair activities to remedy this defect make or will make that part uninhabitable, then the lessee is entitled to rescind the lease agreement on the basis of Article 6:267 of the Civil Code.
- 2. The lessee has the same possibilities when the use of the leased residential space has become dangerous.
- 3. Article 7:210, paragraph 2, applies accordingly.

Article 7:280 Respite period
Before rescinding the lease agreement on the basis of Article 7:231, the court may permit the lessee a period of at the most one month to meet his obligations.

Article 7:281 Rescission of a lease agreement to realize an allowed land use of the leased property
- 1. If someone has become a lessor on the basis of Article 7:226 and he wants to realize a specific use for the leased property in accordance with a valid land use plan, then the court shall, on a legal claim of the lessor, rescind the lease agreement as of a date to be set in its judgement.
- 2. The lessee and the sublessee to whom the leased property was subleased rightfully or with whom the lease agreement otherwise would have been continued on the basis of Article 7:269, are entitled to compensatory damages. If the lease period or sublease period would have proceeded for at least one year when the agreement would not have been rescinded, then the compensatory damages are at least as much as the rent of two years. If the lease period or sublease period would have proceeded for less than one year when the agreement would not have been rescinded, then the compensatory damages are at least as much as the rent of one year. In calculating the damage no attention is paid to changes to the leased property which apparently were made to increase the compensatory damages.

Article 7:282 Mandatory law
It is not possible to derogate to the disadvantage of the lessee or sublessee from Articles 7:272 up to and including 7:281

[Articles 7:283 - 7:289 reserved for possible additional legislation]

Section 7.4.6 Lease of retail spaces

Article 7:290 Application with regard to 'retail spaces'
- 1. The provisions of this Section (Section 7.4.6) apply to lease agreements with regard to retail spaces.
- 2. By a 'retail space' is understood:
a. a constructed immovable thing or a part thereof which under a lease agreement is intended to be used for a retail trade business, shop, restaurant, café or bar, private take away or delivery service or the trade of craft works, provided that the leased space entails a room which is open to the public for direct supply of goods or direct provision of services;
b. a constructed immovable thing or a part thereof which under a lease agreement is intended to be used as a hotel;
c. an immovable thing which under a lease agreement is intended to be used as a camping site business.
- 3. To a retail space as referred to in paragraph 2 also belong the immovable accessories of such space, the accompanying land and, taking into account the use for which the retail space is intended, an accessory house.

Article 7:291 Semi-mandatory law
- 1. It is not possible to derogate to the disadvantage of the lessee from the provisions of this Section (Section 7.4.6).
- 2. Contractual provision that derogate to the disadvantage of the lessee from the provisions of this Section (Section 7.4.6) can nevertheless not be nullified on that ground if they have been approved by the court, except where it concerns a derogation from Article 7:307.
- 3. Each of the parties may request for such an approval of the court. The approval is only given if the contractual provision does not damage the elementary rights which the lessee derives from this Section (Section 7.4.6) or if his social position in comparison with that of the lessor is as such that he reasonably does not need the protection of the present Section (Section 7.4.6).
- 4. The request contains, besides the grounds on which it rests, the text of the to be approved contractual provision.

Article 7:292 Initial lease period and extended lease period
- 1. The lease agreement with regard to a retail space has a duration of five years or, if a longer fixed term has been agreed upon, this longer duration.
- 2. If the initial lease period is five year, then after its expiration the lease agreement will be extended by operation of law with a second lease period of five years. If the initial lease period was longer than five years, but less than ten years, then after its expiration the lease agreement will be extended by operation of law with a second lease period which is so much shorter than five years as the initial lease period was longer than five years [the initial and second lease period amount together up to ten years].

Article 7:293 Terms of notice and termination formalities
- 1. The lease agreement with regard to a retail space that has a duration of five years or that has a duration longer than five years, but less than ten years, may be terminated by each of the parties by means of a notice of termination taking effect as of a termination date at the end of the initial lease period or at the end of the extended lease period meant in Article 7:292, paragraph 2. Article 7:228, paragraph 1 and 2, first sentence, do not apply.
- 2. The notice of termination effectuating the termination must be a bailiff's notification or a registered letter. The term of notice is at least one year.
- 3. No termination is required when the lease agreement is ended with mutual consent of the parties at a moment on which the lease agreement already had been entered into with binding effect for both parties.

Article 7:294 Mentioning the grounds for termination
The notice of termination by the lessor is null and void if it does not mention the grounds which have lead to the termination.

Article 7:295 Legal effects of a termination (claim in court of the lessor)
- 1. As of the day on which a lease agreement related to a retail space has been validly ended by termination, it remains in force by operation of law until the court has given a final and binding judgment on a legal claim of the lessor as meant in paragraph 2. However, if the defence of the lessee appears to be unfounded, the court may give a judgment which is enforceable immediately. The previous two sentences do not apply when the lessee has terminated the lease agreement or when he has agreed with its ending in writing after it was terminated by the lessor.
- 2. When the lessor has not received, within six weeks after the effective termination date, a written notification of the lessee that the lessee agrees with the ending of the lease agreement, the lessor may claim in court, on the grounds mentioned in the notice of termination, that the court determines the day on which the lease agreement shall end.


Article 7:296 Grounds for termination
- 1. If the lease agreement is terminated at an effective termination date at the end of the initial lease period meant in Article 7:292, paragraph 1, then the legal claim of the lessor may be awarded only by the court on the ground that:
a. the conduct of business of the lessee has not been in accordance with that of a good lessee, or
b. the lessor has made plausible that he, his spouse, his registered partner, a blood relative in the direct line, an in-law in the direct line or a foster child wants to take permanent use of the leased retail space personally and the lessor is therefore in urgent need of the retail space himself. By permanent use is understood also the use for renovation of the retail space as far as this is not possible without ending the lease agreement, but it does not include the alienation of the retail space.
- 2. A legal claim, filed on the basis of paragraph 1, under point (b), is not awardable if the lessor is the legal successor of a previous lessor of whom he is not the spouse, the registered partner, a blood relative in the first degree, an in-law in the first degree or a foster child, and the termination is done within three years after this legal succession was notified in writing to the lessee. By a foster child is understood a person who has been taken care for and raised as an own child.
- 3. If the lease agreement has been extended under Article 7:292, paragraph 2, with a second lease period and the lessor terminates it by means of a notice of termination taking effect as of a termination date at the end of this second period, then the court may award his legal claim after a reasonable appreciation of the lessor's interests in ending the lease agreement and the lessee's interests in continuing the lease agreement, taking into account as well the interests of possible sublessees to whom the retail space or a part thereof has been rightfully subleased. If a reasonable comparison between on the one hand the before-mentioned interests of the lessee and sublessee and on the other hand the before-mentioned interests of the lessor leads to the conclusion that the lessee cannot be expected to evict the leased retail space, then the court must reject the legal claim of the lessor.
- 4. In the event meant in paragraph 3, the court must award the legal claim of the lessor, regardless the outcome of a reasonable comparison of the interests of the involved parties, if:
a. the conduct of business of the lessee has not been in accordance with that of a good lessee;
b. the lessor has made plausible that he or one of the persons meant in paragraph 1, under point (b), wants to take permanent use of the leased retail space personally and the lessor is therefore in urgent need of the retail space, provided that the provision in paragraph 2 does not stand in the way;
c. the lessee does not accept a reasonable offer to enter into a new agreement with regard to the leased retail space as far as this offer does not imply a change of the rent, or;
d. the lessor wants to realize a specific use of the leased property in accordance with a valid land use plan.
- 5. If the court awards the legal claim of the lessor, then it will also determine the day on which the leased retail space must be evicted by the lessee. This decision is considered to be a judgment in which the lessee is condemned to evict the leased property on that day.

Article 7:297 Moving expenses and settling-in costs
- 1. In its decision to award the legal claim of the lessor to end the lease agreement, the court may assess an amount which the lessor has to pay to the lessee or to a person to whom the retail space or a part of it has been rightfully subleased as compensation for moving expenses and settling-in costs which the lessee or this sublessee has to make.
- 2. Before giving a decision in which an amount is assessed as meant in paragraph 1, the court will announce its intention to all involved parties and set a period of time within which the lessor may withdraw his termination.
- 3. If the lessor uses his right of withdrawal within the set period, then the court shall only give a judgment concerning the costs of proceedings.

Article 7:298 Respite period to accept the offer of the lessor
In the event, meant in Article 7:296, paragraph 4, under point (c), the court may permit the lessee a period of at the most one month during which he still can accept the offer to enter into a new agreement.

Article 7:299 Liability when the proposed person never wanted to take permanent use of the leased retail space personally
- 1. If the lease agreement has been terminated on the ground that a person, meant in Article 7:296, paragraph 1, under point (b), wants to take permanent use of the leased retail space personally, and the lessee has agreed on this ground with the ending of the lease or the legal claim of the lessor to end the lease agreement has been awarded by the court on this ground or on the ground meant in Article 7:296, paragraph 3, then the lessor is liable for damages towards the lessee and towards the person to whom the retail space or a part thereof was rightfully subleased, if it appears that the proposed person meant in Article 7:296, paragraph 1, under point (b), in reality never wanted to take permanent use of the leased retail space personally.
- 2. Subject to counter-evidence, the proposed person meant in Article 7:296, paragraph 1, under point (b), is regarded never to have wanted to take permanent use of the leased retail space personally, if he does not permanently uses the retail space himself within one year after the lease agreement was ended.
- 3. If the court awards the legal claim of the lessor to end the lease agreement on the ground of termination meant in Article 7:296, paragraph 1, under point (b), it may, upon the request of the lessee or of its own motion, set an amount which the lessor has to pay to the lessee or to a person to whom the retail space or a part thereof has been rightfully subleased, if it becomes apparent that the proposed person meant in Article 7:296, paragraph 1, under point (b), never wanted to take permanent use of the leased retail space personally, notwithstanding the right of the lessee to claim further damages.
- 4. The right of action of the lessee or sublessee to claim damages or the payment of the amount referred to in paragraph 3 becomes prescribed five years after the lease agreement has ended.

Article 7:300 Termination of the lease after the second lease period has expired
- 1. If the initial lease period has been extended under Article 7:292, paragraph 2, with a second lease period and the lease agreement has not been terminated at a date at the end of that second period, then the lease agreement as from then is continued for an indefinite term, unless the lease agreement implies that in such an event it will be continued for a fixed term or parties have agreed as such in another way.
- 2. After the lease agreement has been continued for an indefinite term under paragraph 1, each of the parties may terminate it. If the lease agreement is continued for a fixed term or if the initially agreed lease period has a duration of ten years or more, then, contrary to the provision of Article 7:228, paragraph 1, it will not end on the expiry of that lease period, but each of the parties may terminate it at a date at the end of that lease period.
- 3. The notice of termination must meet the requirements of Article 7:293, paragraph 2 and 3, and of Article 7:294. Articles 7:295 up to and including 7:299 apply accordingly.
- 4. If a legal claim to assess the date on which the lease agreement shall end, has been rejected by the court, and the lease agreement does not indicate that in such an event it will be continued for a fixed term with the possibility to terminate it at a date at the end of this term, then the lease agreement may only be terminated again after a period of at least one year since the judgment in which the legal claim was rejected has become final and binding. The court may set a longer period in the judgment in which the legal claim was rejected.

Article 7:301 Lease period of two years or less
- 1. Articles 7:291 up to and including 7:300 do not apply to a lease agreement with an initial lease period of two years or less.
- 2. If the use of the retail space, started under an agreement as meant in paragraph 1, has exceeded a period of two years, then the lease agreement is converted by operation of law into an agreement under the same conditions, yet for five years, from which the already expired two years are deducted. Articles 7:291 up to and including 7:300 apply to this agreement.
- 3. The legal effect meant in paragraph 2, does not set in if parties, before the initial lease period of two years has expired, have entered into another lease agreement which falls within the scope of Article 7:292, paragraph 1, or have requested the court for an approval as referred to in Article 7:291 to enter into a different lease agreement.
- 4. Where parties, before the initial lease period of two years has expired, have requested the court for an approval to incorporate derogating contractual provisions in their lease agreement on the basis of Article 7:291, and this is rejected by the court, the court may, upon the request of the lessor, in addition decide that the lease agreement shall end at a specific date and that the lessee must have evicted the retail space at this moment. Such a decision is considered to be a judgment to evict the leased property on this moment.

Article 7:302 Termination by the heirs, the spouse or the registered partner of the lessee
A termination of the lease agreement by the heirs of the lessee or his spouse or registered partner, on the basis of Article 7:229, paragraph 2, must be done with due observance of a term of notice of at least six months. Article 7:293, paragraph 2, first sentence, and paragraph 3, apply to this termination.

Article 7:303 Assessment of the rent by the court
- 1. Both, the lessee and lessor, may claim in court that the rent is not in agreement with the rent of comparable retail spaces in the vicinity and ask the court to assess the concerning rent on that ground more specifically:
a. if the lease agreement is entered into for a fixed term: after the agreed lease period has expired;
b. in all other events: each time when at least five years have expired since the day on which the last rent, as set by parties or the court, has become effective.
- 2. In assessing the rent more specifically, the court pays attention to the average of the rent of similar retail spaces in the vicinity of the involved retail space over the last five years before the legal claim was filed. Each rent involved in the rent comparison is recalculated according to the general development of the rent level since the day on which that rent applied until the day on which the legal claim was filed. If it appears to be impossible to provide the court with the data required for the application of this standard of comparison, then the court makes an estimation by means of the data which are available, where it will take that standard as much as possible as a guideline.
- 3. The court rejects a legal claim to increase the rent as far as it is based on improvements of the leased retail space that have been introduced at the expense of the lessee.
- 4. If the court assesses the rent more specifically, then this rent will become effective as of the day on which the relevant legal claim was filed in court, unless the court has awarded a claim of one of the parties to point out another commencing day in light of particular circumstances of the situation. Moreover, the court may order in its judgment that the rent will be changed gradually during a set period of at the most five years.

Article 7:304 Expert opinion
- 1. A legal claim to assess the rent more specifically as meant in Article 7:303, is only admissible if it is attended with an advisory report about the level of the involved rent from one or more experts in this field, selected by both parties.
- 2. When parties cannot come to terms on the selection of an expert, the court will appoint him upon the request of the most interested party. For the purpose of Article 7:303, paragraph 1, 2 and 4, the day on which such a request is lodged, is considered to be the day on which the legal claim to assess the rent more specifically is filed.
- 3. The costs of the advisory report are treated as costs of proceedings as meant in Article 237 of the Code of Civil Procedure; Articles 195, 196, 199 and 244 of that Code apply accordingly.

Article 7:305 Increase of the rent after applying energy saving measures
- 1. The lessor who pursuant to an ordinance as meant in Article 13 or 15 of the Housing Act has made energy saving improvements as meant in Article 7:243, paragraph 2, to the leased retail space, is entitled, also in situations falling outside the scope of Article 7:303, paragraph 1, under point (a) and (b), to recharge the costs of these measures, as far as they are reasonable, to the lessee by charging a higher rent. Where the lessee and lessor cannot come to terms on the increase of the rent, each of them may claim in court the assessment of this increase.
- 2. The present Article not only applies to retail spaces in the sense of Article 7:290, but also to a constructed immovable thing or a part thereof that is leased with the intention to be used for another kind of business or enterprise than the ones mentioned in Article 7:290.

Article 7:306 Legal effect of the end of the main lease agreement for a sublessee
- 1. A sublease agreement related to a retail space ends at the day on which the leased retail space has to be evicted by the main lessee according to a judgment of the court as meant in Article 7:296, paragraph 5, rendered on a legal claim of the main lessor.
- 2. If the main lessee has not or not correctly informed the sublessee about the lease period which applies or was accepted under the main lease agreement or if he has not watched over the interests of the sublessee sufficiently when the main lease agreement was ended or when the date was set on which he has to evict the retail space, then he is obliged to compensate the damage which the sublessee suffers as a result
- 3. The main lessee against whom the main lessor has filed a legal claim which affects the interests of the sublessee, is entitled to call the sublessee to court.

Article 7:307 Subrogation (substitution) of the lessee of a retail space
- 1. If the lessee wants to transfer his business, which he or someone else conducts in the leased retail space, then he may claim in court to become authorised to replace himself with a third person who will continue his contractual position under the existing lease agreement as lessee.
- 2. In considering such a legal claim of the lessee, the court decides with due observance of all circumstances of the case, on the understanding that the court may only award the legal claim when the lessee or the other person who conducts the business in the leased retail space has compelling reasons to transfer this business and that the court has to reject the legal claim at all times if the proposed new lessee does not offer sufficient guarantees for full compliance with the lease agreement or for a proper conduct of business.
- 3. The court may in its judgement grant its authorisation under certain conditions or impose one or more obligations or duties on the old or new lessee.

Article 7:308 Compensation for goodwill and other benefits at the end of the lease agreement
- 1. If the lessor, after the lease agreement has ended by termination, enjoys a benefit as a result of the fact that the leased retail space is used again to conduct a business similar to that of the former lessee or sublessee to whom the retail space was rightfully subleased, then this former lessee or sublessee may claim a compensation from the lessor which is to be determined in fairness.
- 2. A benefit resulting from the nature or position of the retail space or from changes introduced to it, does not qualify for the purpose of paragraph 1.
- 3. The compensation cannot be granted when the retail space only after one year since the end of the lease agreement is used again to conduct a similar business.

Article 7:309 Demolition in the public interest and compensation for damages
- 1. If a lessor, to whom the rights and obligations from the lease agreement have passed by virtue of Article 7:226, has ended this agreement on the basis of a termination made in connection with the fact that the leased construction has to be demolished in view of the completion of works to be implemented in the public interest, then he has to pay damages to the lessee and the sublessee to whom the retail space was rightfully subleased because of the loss of the possibility that the lease agreement without this passage would have been continued.
- 2. The lessor also has to pay damages as referred to in paragraph 1 if the passage has occurred after the previous lessor had terminated the lease agreement in connection with the fact that the leased construction after the passage will be demolished in view of the completion of works to be implemented in the public interest. Where the right of ownership of the leased retail space has been transferred to a new owner at a moment on which the lease agreement already had been ended by termination, the damages must be paid by the new owner who will start the demolition.
- 3. The lease agreement is considered to have been terminated in connection with the fact that the leased construction will be demolished in view of the completion of works to be implemented in the public interest, if demolition starts within six years after the termination.
- 4. Work to realize a specific use in accordance with a land use plan, intending to reconstruct a built-up area, is in any event considered to be done in the public interest.
- 5. The present Article not only applies to retail spaces in the sense of Article 7:290, but also to a constructed immovable thing or a part thereof that is leased with the intention to be used for another kind of business or enterprise than the ones mentioned in Article 7:290.

Article 7:310 Rescission of a lease agreement in connection with the realization of a land use plan
- 1. If a lessor, to whom the rights and obligations from the lease agreement have passed by virtue of Article 7:226, wants to realize a specific use of the leased property in accordance with a valid land use plan, then the court may rescind the lease agreement as of a specific date on a legal claim filed for this purpose by the lessor.
- 2. The lessee and the sublessee to whom the retail space was rightfully subleased, may claim a compensation for damages. In determining this compensation the possibility that the lease agreement without that passage would have been continued, is taken into account.
- 3. The present Article not only applies to retail spaces in the sense of Article 7:290, but also to a constructed immovable thing or a part thereof that is leased with the intention to be used for another kind of business or enterprise than the ones mentioned in Article 7:290.