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Law No. 86-12 of 6 January 1986
Droit Immobilier

Law No. 86-12 of 6 January 1986

📅 Décision du 15 April 1992⚖️ Cour de cassation👁️ 10 vues📖 2 min de lecture

Law No. 86-12 of 6 January 1986 immediately governs the effects of legal situations that arose before its entry into force and that have not been definitively concluded. Therefore, the Court of Appeal, which notes that a tenant company is entitled to request the application of this text, rightly holds that the conditions under which that company had previously accepted that the rent be set, according to the rental value, at an amount lower than the landlord's demand, could not have the effect of binding it definitively, since on the date of that acceptance the rent could only be set according to the rental value, which precisely excluded the existence of a judicial contract.

Reference decision: cc • No. 90-10.717 • 15 April 1992 • View the decision →

This decision provides important insight into your property law. Here is what it means for you.

The situation

Law No. 86-12 of 6 January 1986 immediately governs the effects of legal situations that arose before its entry into force and that have not been definitively concluded. Therefore, the Court of Appeal, which notes that a tenant company is entitled to request the application of this text, rightly holds that the conditions under which that company had previously accepted that the rent be set, according to the rental value, at an amount lower than the landlord's demand, could not have the effect of binding it definitively, since on the date of that acceptance the rent could only be set according to the rental value, which precisely excluded the existence of a judicial contract.

What the law says

This decision confirms the fundamental principles of property law.

Key points

  • Scrupulously comply with statutory appeal deadlines
  • Keep all supporting documents (title deeds, deeds, letters)
  • Anticipate: preventive advice is always cheaper than litigation

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📌 Does this apply to your situation? Maître Cécile Zakine, French real estate lawyer, practises throughout France.
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Informations juridiques

  • Numéro: 90-10.717
  • Juridiction: Cour de cassation
  • Date de décision: 15 avril 1992

Mots-clés

droit immobilierjurisprudenceimmobilier

Cas d'usage pratiques

1

Bakery tenant challenges pre-1986 agreed rent

In 1985, a bakery in Marseille signed a lease renewal with a monthly rent of €2,500, lower than the landlord's demand of €3,000, based on the rental value at the time. After the 1986 law came into force, the tenant believes the rent should be recalculated under the new rules, which could reduce it to €2,000.

Application pratique:

The 1992 decision confirms that Law 86-12 of 6 January 1986 applies immediately to ongoing lease situations. Because the 1985 agreement was not definitively concluded (the lease continues), the tenant can request a rent revision under the 1986 law. The earlier acceptance of a lower rent does not prevent this. The tenant should send a formal request to the landlord citing the law and this case, and if refused, apply to the rent tribunal (juge des loyers commerciaux) for a reassessment based on current rental value.

2

Landlord resists rent cut under new 1986 rules

A commercial landlord in Bordeaux leased a shop in 1984 with a rent of €4,000 per month, agreed by both parties based on the rental value. When the 1986 law was enacted, the tenant demanded a reduction to €3,200, arguing the new calculation method applied. The landlord insists the original agreement should stand.

Application pratique:

Under the precedent set by the Court of Cassation, a landlord cannot rely on a pre-1986 agreement to block the application of the new law if the lease was not definitively concluded. Since the lease is ongoing, the 1986 law immediately governs its effects. The landlord should check if the tenant's request is within legal deadlines and, if necessary, prepare to negotiate or provide updated evidence of the current rental value in court. The previous acceptance by the tenant does not create a binding 'judicial contract' that overrides statutory provisions.

3

Medical practice uses 1986 law to cap rent increase

A group of doctors in Lille have rented a clinic since 1983 under a lease that ties rent revisions to the 'rental value'. In 1987, the landlord proposed a 20% increase to €6,000 per month. The doctors argue that the 1986 law limits increases and that their earlier acceptance of a 1985 interim rent does not bind them permanently.

Application pratique:

The 1992 ruling clarifies that a tenant's previous acceptance of a rent set according to rental value does not definitively fix the rent under the new legal framework. Because the 1986 law applies to ongoing leases, the doctors can challenge the increase by requesting a judicial determination of the rent according to the new criteria. They should gather all lease documents and correspondence, then engage a lawyer to file a claim with the commercial rent court. The key is that the law changed the rules mid-lease, and unfinished rent-setting processes can be revisited.

Maître Cécile Zakine

À propos de l'auteur

Maître Cécile Zakine — Avocate au Barreau des Alpes-Maritimes, Docteur en Droit. Chaque article de ce magazine est rédigé à partir de l'analyse d'une décision de jurisprudence réelle, commentée et mise en perspective par les équipes de Maître Zakine.

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