Civil Code Lease Agreement: Definition, Use Cases, and Rules for Renting Safely
What exactly is a Civil Code lease?
A Civil Code lease is a rental agreement governed by the Articles 1713 et seq. of the Civil Code. It allows for a high degree of contractual freedom, subject to applicable mandatory rules and the obligations set forth in the Civil Code.
In practical terms, a general lease allows a property to be rented outside the traditional framework of the tenant’s primary residence. It therefore applies to very specific situations, often related to a particular use of the property.
How does a lease under the Civil Code differ from a residential lease (1989 Act)?
The residential lease, governed by the 1989 law, strictly regulates rentals with a minimum term, rent control, and specific rules for termination.
A lease under the Civil Code, on the other hand, is based on contractual freedom: the term, rent, and termination conditions are freely determined by the parties.
In what situations can a Civil Code lease be used?
A lease under the Civil Code may be used, in particular, in the following cases:
- Second home
- Company housing
- Lease to a Company
- Mixed-use or non-traditional use
What types of housing and situations are excluded from a Civil Code lease?
A Civil Code lease cannot be used freely. Certain situations require the use of a different type of lease.
The following are excluded:
- Homes Used as Primary Residences
- Leases subject to the Act of July 6, 1989
- Some regulated furnished rentals
- The commercial leases or the commercial leases governed by other laws
What are the benefits of a Civil Code lease for the landlord and the tenant?
For the landlord, the benefits include, among others:
- The freedom to set the term of the lease
- The ability to freely set the rent amount
- More flexible cancellation terms
- Adaptation for specific uses (second home, business)
There are benefits for the tenant as well:
- Access to housing outside the traditional market
- Terms negotiated to suit your needs
- Flexibility in terms of duration and occupancy
What are the landlord's obligations under a Civil Code lease?
The landlord must:
- Deliver a dwelling in good condition for occupancy
- Ensure the peaceful enjoyment of the premises
- Ensure that the necessary maintenance is performed on the property
- Comply with the terms of the contract
These rules apply regardless of the type of lease.
What are the tenant's obligations under a Civil Code lease?
The tenant must also fulfill certain obligations:
- Pay rent and utilities by the due dates
- Use the housing in accordance with its intended purpose
- Maintaining the Rental Property
- Comply with the terms of the contract
Failure to comply with these obligations may result in termination of the lease, in accordance with the terms set forth in the relevant contractual provision.
