Commercial lease: who pays for compliance work? | ScriptaLegal
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Frequently asked questions > Commercial lease > Drafting and clauses of the commercial lease > Who is responsible for carrying out the necessary work to bring the premises into compliance with laws and regulations?

Who is responsible for carrying out the necessary work to bring the premises into compliance with laws and regulations?

In a commercial lease, the responsibility for the work necessary to bring the premises into compliance with laws and regulations depends in particular on the nature of the work, its cause, the intended use of the premises and the obligations of the landlord and the tenant.

Compliance work may include fire safety, electrical installations, accessibility of premises, ventilation systems or specific requirements applicable to activities carried out in the premises.

The commercial lease should specify, in particular:

  • The compliance work that the landlord must carry out before taking possession of the premises;
  • The specific works and improvements necessary for the operation of the tenant's business;
  • The allocation of costs related to the modifications required by the competent authorities;
  • Responsibilities concerning the facilities, equipment and common areas of the building;
  • The obligations of the parties when a new legal or regulatory requirement comes into effect during the term of the lease;
  • The consequences of a delay or inability to carry out the necessary work.

In principle, the landlord must deliver the premises in good repair and maintain them in a condition that allows their use in accordance with their obligations. However, in a commercial lease, the parties may agree on a specific allocation of certain obligations, subject to applicable legal rules.

The tenant may, in particular, be required to carry out or pay for the work necessary for the exercise of its activities when this responsibility falls upon it under the lease or applicable rules.

It is important to distinguish between work necessary for the general compliance of the building and work arising from the specific needs of the tenant's business. This distinction can affect the allocation of responsibilities and costs.

When a competent authority requires compliance work, the parties must also verify the obligations that the law imposes directly on each of them. The provisions of the lease do not necessarily allow for the exclusion of these obligations towards public authorities.

It is therefore important to determine, before signing the lease, whether the premises are suitable for the intended use and to clearly specify the work to be carried out, the applicable deadlines and the person who must bear the costs.

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