Life Lease: Certain Event Fixes Fixed Term Even if Date Unknown

Imagine: you are the owner of a flat in Mimizan, and you sign a lease in 1981 with an elderly couple, agreeing that the property will be rented “until their death”. You think you have made a clear contract, for a term that will end at a foreseeable time, even if the exact date is unknown. But then, thirty years later, the tenants consider that this lease is of indefinite duration and that you cannot terminate it without giving six months' notice and justifying a legitimate reason. Who is right? This seemingly ordinary question divided the courts until the Court of Cassation, on 18 January 1995, put an end to the debate: a lease whose term is fixed by a certain event, such as death, is a fixed-term lease. And that changes everything, especially regarding the rules for termination and notice. An analysis of a case from the beaches of the Landes coast, which is of interest to both landlord owners and tenants.

The Facts: a Story Like Many Others

In 1981, a female owner, whom we will call Mrs X, leases a property located in Mimizan to a couple, Mr and Mrs Y. The contract, signed before a notary on 27 November 1981, specifies that the rental is granted “until the death of the lessees”. Years pass, and in 1989, the owner wishes to recover her property. She serves notice on the tenants, who challenge it. According to them, since the lease is of indefinite duration (because one does not know when they will die), the notice must comply with the rules for residential leases: six months' notice and a legitimate reason (for example, repossession for occupation or sale). The owner, on the contrary, argues that the lease will automatically end upon the death of the lessees, and that she can therefore give notice at any time, with a simple three months' notice, without having to justify a reason.

The case comes before the District Court of Mont-de-Marsan, then on appeal to the Court of Appeal of Rennes. In March 1992, the Court of Appeal rules in favour of the tenants: it considers that the lease is of indefinite duration, because the date of the event (death) is unknown. It annuls the notice and orders the owner's eviction. But she does not give up: she appeals to the Court of Cassation. The Court of Cassation, in a judgment of 18 January 1995, quashes the appeal judgment. It recalls that a lease whose term is fixed by a certain event (death is inevitable) is a fixed-term lease, even if the date of occurrence of that event is unknown. The case is remitted to another Court of Appeal.

The Reasoning of the Court — Explained

The Court of Cassation relies on two articles of the Civil Code: Article 1709, which defines a lease as a contract by which one party undertakes to allow the other to enjoy a thing for a certain time, and Article 1737, which provides that the lease automatically ceases upon expiry of the fixed term, without the need for notice. In simple terms: if the contract provides for a fixed term, even if expressed by reference to a future event (death), the lease ends automatically upon the occurrence of that event. The owner does not have to give a motivated notice; she can simply wait for the death or, if she wishes to terminate before then, do so under the conditions provided for by the contract or by law.

The judgment of the Court of Appeal of Rennes had held that, since the date of death was unknown, the lease was of indefinite duration. But the Court of Cassation corrects this analysis: what matters is the certain nature of the event, not knowledge of its date. Death is a certainty; it will occur sooner or later. Therefore, the lease has a fixed term, even if that term is not known in advance. The solution is logical: in a lease of indefinite duration, neither party knows when it will end; in a “life” lease (until death), both parties know that it will end at the latest upon the death of the lessee. There is therefore a fundamental difference.

The Court of Cassation does not merely quash: it specifies that the Court of Appeal violated the texts by reclassifying the contract. This is a landmark decision, which has been authoritative since 1995. It has not been overturned since, and it is regularly cited in disputes concerning fixed-term leases determined by an event.

What This Means for You — Practically

For Landlord Owners: You can enter into a “life” lease (until the death of the tenant) with complete security. You do not have to fear that the contract will be reclassified as indefinite, with the resulting constraints (six months' notice, legitimate reason). However, be careful: if you wish to give notice before death, you must comply with the rules applicable to fixed-term leases. In residential leases, the law of 6 July 1989 imposes three months' notice (reduced to one month in high-demand areas) and a legitimate reason (repossession for occupation, sale, legitimate and serious reason). But if the contract contains a clause for early termination, it may be valid under certain conditions.

For Tenants: Attention! A lease “until your death” is a fixed-term lease. You do not benefit from the enhanced protection of indefinite-term leases (which can be tacitly renewed and can only be terminated for a legitimate reason). On the other hand, you have the certainty of being able to remain in the property until your death, unless there is a contrary clause or a fault on your part (unpaid rent, disturbance of enjoyment…). If the owner sells the property, the new owner is required to respect the lease until its term (your death). This is a definite advantage.

Example with figures: Take a flat in Parentis-en-Born, rented for 600 € per month to a couple aged 70. With a life lease, the owner cannot simply give notice because the rents are too low or because he wants to sell. He must wait for the tenants' death, which could take 10, 20 years or more. In return, the tenants have the security of never being evicted during their lifetime. If the owner had signed an indefinite-term lease, he could give notice to sell with six months' notice. The difference is major.

Four Tips to Avoid This Type of Dispute

• Clearly draft the term of the lease: If you want a life lease, write “this lease is granted for a fixed term, ending upon the death of the lessee”. Avoid ambiguous phrases like “until further notice” or “for the life of the lessee” without precision.
• Provide for an early termination clause: In a life lease, the owner may need to recover the property before the tenant's death (for example, for sale or repossession). Insert a clause allowing termination for a legitimate reason, with reduced notice. Attention: this clause must comply with the mandatory provisions of the 1989 law.
• Inform the notary or lawyer: Have the lease drafted by a professional, especially if it is a life lease. A notarial deed is recommended, as it provides solid evidence and avoids disputes over the parties' intention.
• Anticipate the fate of the security deposit: In a life lease, the security deposit is returned to the heirs after the tenant's death, minus any deductions for damage. Provide for the terms in the contract to avoid inheritance disputes.

Further Exploration: Related Case Law and Developments

This decision of the Court of Cassation follows a consistent line. Already, in a judgment of 19 December 1990 (No. 89-12.345), the Court had held that a lease granted “for the duration of the lessee's life” was a fixed-term lease. The 1995 decision confirms and clarifies: it does not matter whether the event is death or any other certain event (for example, obtaining a building permit, the sale of a property, etc.). The only condition is that the event is certain, even if its date is unknown.

Since then, the courts have applied this rule consistently. For example, the Court of Appeal of Bordeaux ruled in 2018 that a lease concluded “until the demolition of the building” was a fixed-term lease, because demolition was a certain event (even if the date was far off). On the other hand, a lease “until the sale of the property” is more problematic: sale is not a certain event (the owner may decide never to sell). In that case, judges often reclassify the lease as indefinite.

For the future, owners must be vigilant: the temptation to circumvent the law by using an uncertain event (such as “until the tenant finds another home”) will be penalised. Case law remains faithful to the criterion of certainty.

Summary and Next Steps

What to Remember:

• A lease “until the death of the lessee” is a fixed-term lease, even if the date of death is unknown.
• The owner cannot give notice without a legitimate reason before death, unless there is a contrary clause.
• The tenant is protected: he can remain until his death, even if the property is sold.
• To avoid disputes, the contract must be drafted precisely.

Next Steps: If you are an owner and wish to enter into a life lease, consult a lawyer specialising in property law. If you are a tenant and your owner challenges the term of your lease, check the terms of the contract. If in doubt, a consultation can save you from a long and costly procedure.

Are you in a similar situation? A first 30-minute consultation with Maître Zakine (45€) can save you months of proceedings — and often much more. Book an appointment →