The lessor under an emphyteutic lease cannot

Practical application:

This case law confirms that an emphyteutic lease—where the tenant's main obligation is to build or improve the land, not to pay market rent—does not allow the landlord to unilaterally increase the rent. The owner should not pursue litigation for a rent review, as it will be rejected. Instead, negotiate a voluntary amendment with the tenant if both parties agree, or wait until the lease expires to benefit from the improvements that revert free of charge.

Practical application:

Relying on this decision, the tenant can formally refuse the increase: an emphyteutic lease's economic purpose is not periodic rent but the transfer of improvements at term. The tenant should send a written rejection citing the Cour de cassation ruling and maintain the original rent payments. Keep all receipts and records of improvements made, as these enhance the tenant's position if the landlord attempts to terminate. Seek advice from a French avocat to draft a formal response if needed.

Practical application:

This case law shows that rent review to market levels is impossible in an emphyteutic lease—the fixed rent is inherent to the arrangement. Before buying, the investor must recalculate the property's value based solely on the fixed income stream and the expected reversion of the building at lease end. Seek a full legal audit of the lease terms and adjust the offer price downward to reflect the long-term rent ceiling.