LEASE AGREEMENTS
LEASE AGREEMENTS
The court disagreed. While the liquidators allowed temporary occupation during the lease review process, they consistently stated that they were not bound by Med Office’ s agreements. There was no consensus on rent, utilities, or any other essential terms. Therefore, no new lease had been concluded, and no ratification had occurred.
Key Considerations for Landlords, Owners and Investors This judgment serves as a timely reminder that a lease is only as strong as the title behind it.
The following points are key for landlords, property owners and investors: Good faith is not always enough: Even tenants who act in good faith may find themselves without legal protection if the lease is entered into with someone who lacked the necessary authority or valid ownership.
Courts will not hesitate to grant eviction orders when occupants unlawfully hold over a property with reliance on an agreement entered without the necessary authority.
• Huur gaat voor koop has limits: It only applies where there has been a valid and lawful transfer of property. If the original“ sale” was invalid or unlawful, the rule cannot apply.
• Ratification must be clear: Accepting rent or allowing occupation does not, on its own, create a binding lease. There must be agreement on essential terms.
For investors acquiring tenanted properties or landlords dealing with third-party lease arrangements, this case serves as a strong argument for thorough legal due diligence.
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