November 12, 2014
The Pinel Law (Law No. 2014-626 of June 18, 2014) makes mandatory to include within commercial lease agreements a specific inventory regarding taxes, fees, royalties and charges, as well as to clearly determine their allocation between the Lessor and the Lessee, thus putting an end to the contractual freedom of former commercial leases (New Article L. 145-40-2 of the French commercial Code). Furthermore, the law left it to a decree to determine the list of charges, taxes and fees that, because of their nature, may not be imposed to the Lessee.
This much awaited decree (Decree n°201-1317 of November 3, 2014) has been released today. The Decree confirms the abolition of the practice of “triple net” leases in France for offices or commercial shops. Indeed, from now onwards, for leases entered into or renewed on or after November 5, 2014, the following can no longer be charged to Lessees:
Gibson, Dunn & Crutcher lawyers are available to assist in addressing any questions you may have regarding these issues. Please contact the Gibson Dunn lawyer with whom you usually work or any of the following lawyers:
Jérôme Delaurière – Paris (+33 (0)1 56 43 13 00, [email protected])
Jeffrey M. Trinklein – London and New York (+44 (0)20 7071 4180, +1 212-351-2344, [email protected])
Nicholas Aleksander – London (+44 (0)20 7071 4232, [email protected])
Hans Martin Schmid – Munich (+49 89 189 33 110, [email protected])
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