LUXEMBOURG Law and Practice Contributed by: Claire-Marie Darnand, Victorien Hémery, Johan Léonard, Benjamin Marthoz and Tom Storck, Stibbe
A prohibition of the assignment of the lease or subleasing by the landlord should remain pos - sible to the extent it is not made in conjunction with the assignment of the underlying business. Any assignment of the lease or any sublease must be notified to the landlord, who has 30 days to refuse consent for valid reasons. The tenant has the ability to object before the com - petent court, within eight days of the refusal. The tenant remains bound, as joint and several surety, for the performance of the obligations under the assigned or subleased lease agree - ment. 6.19 Right to Terminate a Lease The landlord may request the competent court to terminate a commercial lease with immediate effect and ahead of term if the tenant does not respect the obligations contained in the lease agreement. The lease agreement can also con - tain a clause entitling the landlord to terminate the lease with immediate effect for violation by the tenant of substantial obligations under the lease agreement. If the tenant refuses to vacate the premises, the landlord can request a confir - mation of termination by the competent court to evict the tenant. 6.20 Registration Requirements There is no requirement to register a lease agree - ment or perform any other particular execution formality. Registration of the lease agreement can be made on a voluntary basis with the Lux - embourg VAT authorities. 6.21 Forced Eviction See 6.19 Right to Terminate a Lease . The landlord can request the competent court to confirm the immediate termination of the lease
and to order the eviction of the tenant. The court may grant a reasonable deadline for the ten - ant to vacate the premises. Court proceedings with respect to lease agreements usually take approximately six months. 6.22 Termination by a Third Party If the Luxembourg government initiates an expropriation procedure for premises occupied by a tenant, for public reasons, the tenant will be called by the landlord to participate in the expropriation proceedings and will normally be indemnified by the government if the lease has to be terminated following the expropriation pro - cedure. 6.23 Remedies/Damages for Breach The provisions with respect to damages for breach of the lease agreement are typically contracted in the lease agreement, and usually include: • payment of a certain amount of rent (calcu - lated in months) by the tenant; • a relocation indemnity (to cover for the period until the premises can/will be leased out again); and • coverage of costs for damages that may have been caused to the property and which would be attributable to the tenant. The security deposits have been summarised in 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations . 7. Construction 7.1 Common Structures Used to Price Construction Projects There are three main methods used to price con - struction projects, as follows:
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