Rental agreement

Essence of the lease

The main content of the lease agreement covers the landlord to give the tenant a property for temporary use and the consent of the tenant to agree to his pay for a price. The transfer of the property from the landlord to the tenant and the actual implementation of the use of the leased property by the latter are facts that stand in the field of performance of the contract, not to reach the agreement for the occurrence of the contractual relationship or termination of its existence. The lease agreement is informal - the law does not require form as a condition for its validity. The written form is a condition to prove him in the presence of dispute in the case of rental contracts worth over 5,000 lev, which can not be proved with evidence (unless concluded between spouses or lineal relatives, collateral line to the fourth degree and by affinity to the second degree).

Under the law, lease agreements concluded for a period longer than one year are recorded in the property register. The entry of the rental contract protects tenant if the property is transferred before the expiry of the contract.

Rights and obligations of the parties to the lease

- Rights and obligations of landlord

The main duty of the landlord to provide the use of the property. This means, first, to hand over the property to the tenant in a condition that meets the use of which is rented. If the item is not delivered in satisfactory condition, i. E. The thing is deficient, the tenant has the following options for action: claim its repair by the landlord or fix it on his behalf; to demand a commensurate reduction of the rental price; to cancel the contract. In each of these cases has the right and compensation for damages.

The landlord is relieved of liability for defects the following groups: (1) deficiencies which were known to the tenant, which is why e recommended that countries compile packing slip when signing the contract; (2) manifest shortcomings - such that the tenant could usually know at attention. The landlord will be responsible for the above two groups shortcomings, however, if they are dangerous for the health of the tenant or the health of persons in the household.

In connection with the provision of peaceful use of the property by the lessee, lessor may undertake not to transfer the property in the term of the lease agreement, the parties may agree penalties in case of default.

In addition, the landlord must provide the tenant and all the necessary accessories to property, including documents (if necessary).

In case of any damage during the term of the lease payment shall be divided among the parties according to the "gravity" of damage. Lessor is responsible for any damage to property outside the small ones due to conventional use, which are borne by the tenant . If the landlord fails to make these repairs, the tenant has the right to demand their correction or proportionate reduction in the rental price or terminate the contract and claim damages in all cases where the damage was due to reasons for which it is responsible landlord. But if tenant alone has committed these amendments with due diligence can deduct their value from the rent without the need of legal empowerment, but to invite the landlord.

- Rights and obligations of the tenant

The lessee must use the property as agreed purpose if such miss - usual purpose.

It is essential and the obligation to pay the agreed rent according to the terms and conditions of the contract. Usually payment is periodic installments - monthly, weekly, daily, etc. It is possible to arrange and lump sum or other consideration. Often in practice the tenant provides deposit, the amount of which is linked to the amount of rent due. This deposit, according to the case-law is a guarantee, a purely precautionary in nature and serves to possibly satisfy the claims of the lessor for damages from breach of the lease. Claims for rent, as a kind of periodic payments shall be extinguished after three years.

With financial conditions are obligations to pay for costs related to the use of the property (electricity, heat, water, telephone etc.) In t. H. And minor repairs imposed by conventional use of the property (dirty walls in rooms , corrosion of faucets, locks, blocked chimneys, etc.).

Permanent alterations, improvements, luxury expenses for the property can be made by the tenant with the consent of the landlord, which is usually agreed as a contractual clause in order to avoid future disputes. By decision of the SCC is accepted that when making tenant improvements when the lease is not agreed at whose expense are depleted has sought for unjust enrichment. The quality of the person making the improvements is determined by the given consent in order that enhancer can be possessor, holder or a person who leads gestio, while improvements of tenant due costs incurred rather than the increased value of property.

The lessee is obliged to report immediately to the landlord for damages and infringements carried out on the leased property.

The lessee is obliged to return the property after termination of the contract, while its adoption is well also to establish a handover protocol. Its purpose is to determine the condition of the property at the time of her return and possibly compensation payable by the tenant for damages. This is due only if the damages caused by the fault of the tenant, members of his household or subtenant.

term

Characteristics have in relation to the duration of the lease. The law sets a maximum period of 10 years, except if the lease does not constitute a commercial transaction. Should still be concluded for rent, for example, 12 years, in case of dispute, the court will automatically reduce the contract term to 10 years. Traders, however, in carrying out its commercial business can conclude rent for a longer period.

subleasing

Redeployment is permissible if it is not expressly excluded in the lease. When redeployment has two contracts - between landlord and tenant and subsequent contract between the tenant and subtenant. In sublease contract does not arise relationship between the landlord and the subtenant, the relationship between the tenant and the right sublessee and the latter is determined by that of the tenant. The rule is that sublessee no greater rights by the tenant to use the property rented.

Termination of the lease

Like all other contracts and the lease can be terminated by mutual consent - need countries to agree on the time and other consequences of termination.

Fixed-term lease is terminated by expiry of the agreed period.

Fixed-term lease also like indefinite duration may be terminated by notice, but only if this option is expressly agreed by the parties

Special rules introduced LOC the termination of open-end lease. It may be terminated with notice to the other party. The law defines the minimum notice period - a month, but if the lease is a day - is sufficient notice of one day. Termination of open-end lease under the CPA have not been provided any other prerequisites, except the service of a unilateral notice, so regardless of any possible failure to fulfill obligations under this contract by one party and the existence of grounds for destruction of the contract.

Specifics regarding the effect of the lease and the time of its termination arise in the transfer of the leased property during the lease. Regardless of the mode of transfer of ownership - purchase, exchange, donation, inheritance, etc., If the lease is concluded in writing and before the transfer of the property, the options are three. First, if the lease is registered in the Land Registry, it remains in force for the transferee for such a long time, for as has been concluded (Art. 237 par. 1 LOC); after the expiry of the agreed period, the contract is terminated by right and the tenant should exempt property. Second, if the lease is not registered, but have valid date (eg notarized), it applies to the transferee to the period prescribed therein (if less than one year), but for no longer than one year. (Art. 237 par. 2 CPA, first sentence). With the expiry of the relevant period, if less than one year or one-year period respectively, from the transfer of the property fixed term lease is terminated by right and the tenant should exempt property. Third, if the contract is neither registered nor has a verifiable date, but the tenant is in possession of the property, the contract remains in force for the transferee as a rental contract without a fixed term, which means it can be terminated with a minimum of one month's notice.

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Attorney at law Iuila Danova

#3, Dobrotica Str., Varna, Bulgaria

Mob: +359 895 64 59 40

WWW: advokatvarna.com

Email: iulia.danova@abv.bg