Supreme Court ruling: an extension of an eviction period, agreed against payment, is not a lease agreement

On January 31, 2025 (ECLI:NL:HR:2025:167), the Supreme Court issued a very interesting ruling for housing associations. That ruling dealt with the question of whether a settlement agreement aimed at extending the eviction period for a payment, concluded between the landlord and the children of a deceased tenant, should be considered a lease.\

Assessment of temporary occupation after death of tenant: no right to rent protection

The children of a deceased tenant were unable to claim continuation of the rental agreement with housing corporation Portaal, as referred to in article 7:268 paragraph 2 of the Civil Code. It was agreed with Portaal that they would be allowed to continue living in the house for a limited period of time in return for compensation while they looked for alternative housing.

Afterwards, the children of the deceased mother argued that this agreement was in fact a rental agreement, which would entitle them to legal rent protection. The district judge initially agreed with them in this, but the court ruled otherwise and ordered them to vacate the home.

The Supreme Court concurred with the court’s ruling. Although an agreement may contain certain features that correspond to the legal definition of lease, this does not necessarily mean that the arrangement should be considered a lease. The qualification of an agreement depends on the specific circumstances and intentions of the parties involved. In this case, the Supreme Court ruled that it is not desirable for a landlord, when granting a temporary postponement of eviction for a fee, to automatically face legal rent protection.

The Supreme Court emphasized that the protection of occupants in similar situations is adequately guaranteed through the possibility of invoking Section 7:268(2) of the Civil Code, which further regulates the rights of surviving occupants after the death of the tenant.

The ruling highlights the importance of the interpretation of agreements in tenancy law and is an important ruling for practice: it offers housing corporations opportunities to make agreements with residents who do not have the right to remain in the residence, without being directly confronted with the consequences of rent protection.

Advice

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