Emphyteutic Lease and Eviction: The Landlord Cannot Ignore the 1989 Law

Imagine the scene: you have been renting a flat in Mandelieu for years, you pay your rent, and suddenly, a landlord you do not know appears at your door, telling you that your lease is void and that you must leave within two weeks. What would you do? This situation, more common than one might think, involves complex legal mechanisms: emphyteutic lease, right of eviction, and above all, the sacred protection of the residential tenant. The question that every property owner or real estate investor asks: can one circumvent the Law of 6 July 1989 (which protects tenants) by relying on a commercial or emphyteutic lease? The answer is no, and the Court of Cassation forcefully reminded this in a judgment of 2 June 2010.

This decision, rendered under number 08-17.731, highlights a conflict between a head landlord, the AP-HP (Assistance Publique - Hôpitaux de Paris), and a company operating under an emphyteutic lease (a long-term contract granting a real right over a building). Above all, it protects residential tenants, often the most vulnerable. In short, even if an emphyteutic lease ends, the tenant occupying the premises under a regular residential lease cannot be evicted without complying with the strict rules of the 1989 Law.

But what exactly does this change for you, as a property owner in Sophia-Antipolis or a tenant in the Alpes-Maritimes? Let us delve into the case and its practical consequences.

The Facts: A Story That Happens Every Day

The story begins in Paris, but it could take place in any town in France, including on the Côte d'Azur. The Assistance Publique - Hôpitaux de Paris (AP-HP) owns a building. It grants an emphyteutic lease (a very long lease, generally 18 to 99 years, which confers a real right on the property to the lessee) to the SARL Le Logis Deal. The latter, as the emphyteuta (the lessee under the emphyteutic lease), sublets flats to tenants, including Mrs X, who signs a residential lease complying with the Law of 6 July 1989.

The emphyteutic lease expires. The AP-HP, as the head landlord, intends to recover its building and applies for the eviction of Mrs X, the sitting tenant. The Court of Appeal rules in favour of the AP-HP, considering that Mrs X's residential lease is no longer enforceable (i.e., she can no longer rely on it) because the emphyteutic lease has ended. But Mrs X appeals to the Court of Cassation.

Plot twist: the Court of Cassation quashes the appeal judgment. It reminds that a residential lease validly granted by the emphyteuta is enforceable against the head landlord. In other words, the AP-HP cannot evict the tenant without complying with the mandatory provisions of the 1989 Law, in particular Article 10 (on the duration of the lease) and Article 15 (on notice and grounds for eviction). The Court of Appeal had not established that the residential lease had been terminated in accordance with that Law. In plain terms, the head landlord cannot act as if the tenant did not exist.

The Reasoning of the Court — Analysed

The Court of Cassation bases its decision on three texts: Article 2 of the Law of 6 July 1989 (which defines the scope of the Law), Article 10 (on the duration of the lease), and Article 15 (on notice and eviction). It reminds that the 1989 Law is a matter of public policy (i.e., it cannot be contracted out of, except for exceptions provided for). Now, Mrs X's residential lease was regular, and the AP-HP, as the head landlord, was required to respect it.

An argument often put forward by landlords is that Article 1743 of the Civil Code (which protects the tenant in the event of a sale) does not apply to an emphyteutic lease. The Court of Appeal had indeed set aside this article. But the Court of Cassation does not stop there: it adds that no text exempts the head landlord from the obligation to comply with the 1989 Law. In other words, even if the emphyteutic lease is a special contract, it does not allow disregarding the rights of residential tenants.

What few people know is that the Court of Cassation here exercises a strict review: it checks that the lower courts have properly examined whether the residential lease had been terminated in accordance with the Law. Since this was not the case, the eviction was illegal. The decision is therefore a confirmation of the protection of tenants, even in the face of complex legal arrangements. undefined, I have encountered cases where landlords tried to use the end of a commercial lease to recover a dwelling, but without success.

What This Changes for You — Practically

For landlord owners, this decision is a warning: if you are the owner of a building let under an emphyteutic lease, you cannot evict residential sub-tenants without complying with the 1989 Law. Practically, you must give them a valid notice (with a 6-month notice period for an unfurnished dwelling, 3 months for a furnished one) and justify a serious and legitimate reason (repossession for own occupation, sale, etc.). In Mandelieu, imagine an investor who bought a building with an emphyteutic lease coming to an end: he must wait until the residential leases expire or are legally terminated, on pain of damages.

For tenants, this is security: your residential lease protects you even if the building's owner changes or if an emphyteutic lease ends. You cannot be evicted without a valid reason and without procedure. If you are in this situation, you must contest any eviction request by invoking Article 2 of the 1989 Law. Time limits are short: you have 2 months to contest a notice, and 6 months to apply to the judge in case of eviction without title.

For purchasers of buildings, be cautious: before buying a property burdened with an emphyteutic lease, check the existing residential leases. They will be enforceable against you. An investor in Sophia-Antipolis who buys an office building converted into dwellings must know that he inherits the tenants with their rights.

Four Tips to Avoid This Type of Dispute

• Check the existing residential leases: Before entering into an emphyteutic lease or acquiring a building, demand a list of all current residential leases, with their expiry dates. This will avoid unpleasant surprises.
• Scrupulously comply with the 1989 Law: Whether you are a head landlord or an emphyteuta, any eviction of a residential tenant must follow the legal procedure: notice by bailiff, 6 months' notice, valid reason. A simple registered letter is not enough.
• Anticipate the end of the emphyteutic lease: If you are an emphyteuta, notify your sub-tenants well in advance (at least one year) so that they can find alternative housing. If you are a head landlord, negotiate with the emphyteuta so that the residential leases are terminated before the end of yours.
• Consult a lawyer lawyer: Each situation is unique. In Mandelieu, an investor tried to evict an elderly tenant without reason: the interim relief judge suspended the eviction and ordered the landlord to pay €5,000 in damages. Early advice would have avoided this cost.

Further Reading: Related Case Law and Developments

This decision is part of a line of cases protecting tenants. One can cite the Court of Cassation judgment of 13 March 2008 (No. 07-10.585) which had already held that the head landlord cannot rely on the end of the emphyteutic lease to evict a residential tenant without complying with the 1989 Law. The trend is therefore consistent: judges prioritise the right to housing over contractual considerations.

However, for commercial or professional leases, the solution is different: the 1989 Law does not apply. So be careful to distinguish the use of the dwelling. Since 2010, no legislative development has contradicted this judgment. Although the ALUR Law (2014) strengthened tenants' rights, it did not modify this principle. In the future, courts will continue to protect bona fide occupants.

Key Points to Remember

• A regular residential lease is enforceable against the head landlord, even after the end of the emphyteutic lease.
• Eviction without complying with the 1989 Law is illegal: you must give a valid notice and justify a reason.
• If you are a tenant, do not leave without contesting: apply to the interim relief judge to have your right to remain in the premises recognised.
• If you are a landlord, prepare your exit: anticipate the end of the emphyteutic lease by terminating the residential leases in accordance with the rules.

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