Substitution

Another typical dispute in commercial leases is subrogation. If the tenant no longer wishes to continue his business or shop and wishes to transfer the business to a third party, this third party may, with the cooperation of the landlord, continue the current lease agreement (known as subrogation). If the landlord is unwilling to cooperate, the tenant can request the court, by means of a summons, to grant a replacement authorisation for the substitution of this third party. However, this claim will only be granted if the tenant has a serious interest in the transfer of the business and the person taking over the lease agreement offers sufficient guarantees for the fulfilment of the lease.

What is substitution in the case of commercial premises?

Substitution is a powerful legal instrument for entrepreneurs who want to transfer their business but are still bound by a current lease. In that case, the tenant can request that a successor entrepreneur take his place in the lease. This is not a free transfer. The landlord must agree, and if he refuses, the tenant can seek authorisation through the courts. This will only be successful if the tenant has a compelling interest in the transfer (e.g. retirement or financial hardship) and the new tenant is sufficiently reliable in terms of payment and business operations.

How can a solicitor help in a dispute over substitution?

A tenancy law solicitor is indispensable in a dispute about subletting. Our solicitors at Fruytier Lawyers in Business can not only help you to formulate your request to the court in legally precise terms, but also to gather the evidence needed to convincingly substantiate the compelling interest of the tenant and the reliability of the transferee. If legal proceedings are necessary, a solicitor will ensure that your case is presented convincingly in court. This is done with an eye for the interests of all parties and the practice of tenancy law.

We represent both (professional) landlords and (private) tenants.