LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Mantas Lideika, WALLESS
ants as part of the operational fees described in 6.8 Costs Payable by a Tenant at the Start of a Lease . 6.10 Payment of Utilities and Telecommunications Utilities and telecommunications that serve a property occupied by several tenants are usu - ally divided in proportion to the area leased by each of the tenants. 6.11 Insurance Issues The costs of insuring the building are usually paid proportionally by the tenants as part of the operational fees. The tenants of a commercial property are usually required to obtain the following insurance: • tenant’s civil liability insurance against third- party claims arising from physical injury, property loss or damage; and • property insurance covering losses of and damage to all the tenant’s assets in the prem - ises as a result of fire, water, theft, breaking of glass, natural calamities, unlawful activity of third parties and other usual risks, etc. The tenant and the landlord usually agree on some rent discount or delay of payments as there is very little incentive for tenants to insure leases as part of business interruption insur - ance. Tenants with business interruption insur - ance policies that cover rent payments did seek compensation during the pandemic. 6.12 Restrictions on the Use of Real Estate Real estate can only be used in accordance with the purpose registered for it in the public regis - ter and the main purpose of use included in the lease agreement. If the tenant uses real estate in
a way that is not in accordance with the purpose or main purpose of use as agreed in the lease agreement, the landlord has the right to termi - nate the lease agreement. 6.13 Tenant’s Ability to Alter and Improve Real Estate As a rule, the tenant is permitted to alter or improve the real estate only if they have prior consent from the landlord. Usually, the lease agreement includes certain conditions under which such works must be performed (specific hours for performance of works, quality of mate - rials used, etc). 6.14 Specific Regulations No response has been provided in this jurisdic - tion. 6.15 Effect of the Tenant’s Insolvency The lease agreement usually gives the landlord the possibility of terminating the lease agree - ment upon the tenant’s insolvency. The landlord is also included in the list of creditors for any unpaid amounts before the termination of the lease agreement and other debts of the tenant. 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations The landlord’s interests against a failure by the tenant to meet its obligations are usually pro - tected by a deposit, bank or parent guarantee provided by the tenant. 6.17 Right to Occupy After Termination or Expiry of a Lease According to the Civil Code, if the tenant contin - ues to occupy the premises after the expiry of a lease, the lease agreement becomes a lease for an indefinite period, and each party may termi - nate that agreement by serving the other party
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