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Rent review of a lease
Droit Immobilier

Rent review of a lease

📅 Décision du 15 May 1991⚖️ Cour de cassation👁️ 11 vues📖 2 min de lecture

The rent review of a commercial lease comprising a fixed part and a part consisting of a percentage of the tenant's turnover is not subject to the provisions of the Decree of 30 September 1953 and is governed solely by the parties' agreement.

Reference decision: cc • No. 89-20.847 • 1991-05-15 • View the decision →

This decision sheds important light on your property rights. Here's what it means for you.

The situation

The rent review of a commercial lease comprising a fixed part and a part consisting of a percentage of the tenant's turnover is not subject to the provisions of the Decree of 30 September 1953 and is governed solely by the parties' agreement.

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

  • Strictly observe the statutory time limits for appeals
  • Keep all your supporting documents (deeds, title documents, correspondence)
  • Plan ahead: preventive advice is always cheaper than litigation

For an analysis of your situation: 30-minute consultation at €45 with Maître Zakine.

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

  • Numéro: 89-20.847
  • Juridiction: Cour de cassation
  • Date de décision: 15 mai 1991

Mots-clés

droit immobilierjurisprudenceimmobilier

Cas d'usage pratiques

1

Bakery owner challenging uncapped rent escalation

Sophie, a baker in Lyon, has a 9-year commercial lease (since 2021) paying €12,000 fixed annual rent plus 5% of turnover above €200,000. Her landlord recently demanded a 15% increase on the fixed portion, citing the national construction cost index (ICC).

Application pratique:

Because the lease includes a turnover‑based rent component, the statutory indexation rules (Decree 1953) do not apply – only the parties’ agreement matters. Sophie should formally refuse the index‑based increase, point to the precise rent‑review clause in her lease (which makes no mention of ICC), and, if necessary, seek a declaratory judgment enforcing the contractual terms as written.

2

Landlord enforcing annual contractual rise on retail unit

Marc owns a shop unit in Bordeaux, let since 2020 on a 10‑year lease with £8,000 fixed rent plus 3% of turnover. The lease clearly states the fixed portion rises by 2% every January. The tenant now insists the landlord must wait for the triennial statutory review and can only use the statutory index.

Application pratique:

Under this case law, once a lease ties rent partly to turnover, the statutory triennial and indexation rules fall away – the contract alone governs. Marc can rely on the explicit 2% escalation clause, serve a formal notice to pay the increased rent, and, if ignored, start proceedings for unpaid rent or even forfeiture, as the contractual term is fully enforceable.

3

Property investor assessing turnover‑lease acquisition risk

Isabelle, a first‑time commercial investor, is buying a retail warehouse in Marseille with a sitting tenant. The lease (12 years, started 2019) has a complex rent formula: €25,000 base plus 4% of turnover between €500k and €1m, capped at €45,000 total, and a review clause tied to a bespoke index negotiated by the parties.

Application pratique:

This decision confirms that the entire rent‑review mechanism in a turnover lease is contractual – statutory safeguards like indexation caps or mandatory triennial reviews do not apply. Isabelle must have her solicitor dissect the bespoke index and cap, model the maximum financial exposure under the clause, and consider whether a turn‑over audit right is included, because the courts will enforce the agreement strictly.

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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