Sont monovalents des locaux

Application pratique:

The Cour de cassation (France's highest civil court) decided on 8 February 2006 (no. 04-17.046) that premises rebuilt for a single department-store use are 'monovalent', meaning suited to only one use. This is especially so where converting them would need major works costing close to the building's value. The tenant should gather the building plans, the rebuilding history and a builder's estimate of conversion costs, then ask the judge to treat the premises as monovalent. That status usually allows the rent to be set under special rules, so the tenant should challenge the landlord's figure within the legal time limits.

Application pratique:

The 2006 decision shows that a building made for one use is monovalent when changing its use would require costly separation works close to the building's value. Before signing, the buyer should obtain a detailed cost study of the conversion and ask for the existing leases and the rebuilding documents. If the figures match this case law, the buyer should negotiate the price down or make the purchase conditional on a favourable valuation. The buyer should also take advice on how the monovalent status could affect future rent reviews.

Application pratique:

The landlord should note that the courts look at facts: the building's original design and, above all, whether the separation works would be costly. In the 2006 decision, costs close to the building's value were enough to establish monovalence. The landlord should commission an independent expert report on realistic conversion costs and keep all plans and building permits. If the works would be modest, this evidence can be used to challenge the monovalent label and defend a rent based on ordinary commercial values.