The so-called Murcef Law of 11 December

Application pratique:

This case law confirms that the Murcef Law applies to any rent review commenced after its entry into force (11 December 2001), regardless of when the lease was signed. The baker should verify that the proposed increase does not exceed the statutory cap linked to the change in the construction cost index since the last rent fixation. If the landlord's demand is uncapped, the baker can legally challenge it and limit the increase to the capped amount, potentially saving thousands of euros over the lease term.

Application pratique:

Because the review was initiated after the Murcef Law's effective date, the new statutory cap on commercial rent increases applies automatically. The landlord must calculate the maximum permitted increase using the quarterly construction cost index (ICC) variation since 1998. Unless there is a proven material change in the premises or local factors that justifies uncapping, the rent can only rise to around €36,000 (assuming a 20% ICC increase), not the €45,000 demanded. The landlord should recalculate and issue a compliant notice to avoid litigation.

Application pratique:

Future rent reviews will be governed by the law in force when initiated, i.e., the Murcef Law cap will apply. The investor should model returns assuming increases are pegged to the ICC index, not to unconstrained market growth. They should also request from the seller all past correspondence regarding rent, confirm no uncapping events have occurred, and ensure the sale agreement reflects that the tenant cannot be forced into uncapped hikes, protecting the investment from over-optimistic yield projections.