Property Leasing

Συμβολαιογραφικές & Νομικές Υπηρεσίες

 

Property leasing is the agreement by which the lessor undertakes the obligation to concede the use of the property (tenement), that is, its possession, to the lessee and the lessee undertakes the obligation to pay the agreed rent for the duration of the lease relationship.

The use that the lessee will have on the property may be agreed expressly or arise silently, at any rate, however, it must be in accordance with good faith and the intended purpose of the property.
Normally, the right of lease lies with the party entitled to make use of the property and enjoy their fruit, meaning the usufructor or full owner thereof.

Types of lease:
•    Residential lease
•    Commercial lease to exercise commercial activities
•    Public lease to house public services

Rent: The rent is usually defined in cash, but it may consist of an exchange in kind or in services rendered.
The amount of the rent, as well as the time when it shall be paid, are defined freely by agreement between the parties.

Any readjustment of the rent thereof is effected in accordance with what is set forth in the lease contract or, in case there is not such provision at the contract, in accordance with the applicable laws each time and the more general economic conditions.

Lease term: In certain cases the minimum lease term is defined by the Law. In commercial leases the minimum lease term is set forth at twelve (12) years, while in residential leases the minimum lease term is set forth at three (3) years.
Therefore, if a term of less than twelve years was agreed with the professional/commercial housing lease contract, the lessee is entitled to remain in the tenement for at least twelve (12) years, while if a term of less than three years was agreed with the residential lease contract, the lessee is entitled to remain in the tenement for at least three (3) years.
At any rate, if during the drafting of the lease contract a term was agreed that is longer than the minimum one, as this has been defined by the Law, such longer term shall apply.
Extension of the lease may be effected before the expiration of the lease term, either expressly by agreement of the parties, or silently, with the lessee remaining in the tenement, or by Law, where in the case of professional leases it specifically provides for an optional extension in favour of the lessee of an additional four (4) years beyond the above minimum term of twelve (12) years defined by Law.
Upon the extension of the lease the old lease continues.
A renewal of the lease (re-leasing) may be effected expressly by the parties, either before, or after the expiration of the old lease, and this is a new lease under the terms of the old lease, if not defined otherwise.

The lease agreement is considered to be by Law an indefinite term lease, unless the parties set forth otherwise.

Lease Expiration:

The expiration of the lease occurs:
a)    (i) On definite term leases: with the lapse of a definite period of time, if there is no silent extension or renewal or silent renewal, and

(ii) On indefinite term leases: upon the termination of the contract,
b)    upon termination by the lessor or by the lessee in the cases provided by the Law,
c)    upon the fulfilment of any dissolution condition that has been included in the lease agreement,
d)    by execution of a court ruling ordering the return of the tenement due to waywardness,
e)    by later agreement between the parties and before the lapse of the definite term.

Lease contracts format: The lease contract, either commercial or residential is not subject to any mandatory format and it is informal. Usually, it is drafted expressly, but it may be considered to have been drafted also silently, since the Law on Leases does not require a specific format.
The private property leasing documents are brought forth to the competent Tax Branch Office (DOY) for validation and acquisition of verified time stamp.
The written form is compulsory in leases entered where the State, Public Law Legal Persons and Charitable Institutions is the lessee or the lessor.  
The lease contract is required to be effected by notary deed, when the agreement is for a term over nine (9) years and it is transcribed in the familiar transcription books.

Sale of tenement: If during the lease term, the lessor transfers to a third party the ownership of the tenement or concedes any other real right on it, the new owner enters the rights and obligations of the lease, unless agreed otherwise in the lease contract.

Jurisdiction of the Courts in lease disputes: The disputes from a leasing relationship are adjudicated in accordance with the special procedure on lease disputes by the competent courts of the location of the property.