NETHERLANDS Law and Practice Contributed by: Coco van Zuiden, Marijn Bodelier, Sabine Schoute and Simone Wijngaard, Greenberg Traurig, LLP
6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations Bank guarantees, parent guarantees and/or security deposits are the most common forms of security provided by tenants. 6.17 Right to Occupy After Termination or Expiry of a Lease With regard to “230a premises” (see 6.2 Types of Commercial Leases ), mandatory provisions apply with regard to eviction protection for the lessee at the end of the lease. Pursuant to these rules, if the lessee is given notice to vacate the premises following the end of the term of the lease or, in the case of a lease for an indefinite period, the date on which ter - mination of the lease by notice is to take effect, the lessee cannot be evicted for a period of two months following the date of the notice to vacate the premises. During this period, the lessee can petition the district court to extend this term (up to one year). The court will weigh the interests of the parties in deciding whether to grant an extension. The lessee can subsequently peti - tion for two more extensions (for a maximum of one year each). During the time that the lessee enjoys protection from eviction, the lessor must be paid for the use of the premises. The eviction protection rules do not apply to les - sees that have terminated the lease, explicitly agreed to termination of the lease, or have been ordered to vacate the premises due to a breach of contract. 6.18 Right to Assign a Leasehold Interest Under Dutch law, the general rule is that a party must have the other party’s consent in order to
ties, the lessee must reimburse the lessor for the amount in excess of the normal premium. 6.12 Restrictions on the Use of Real Estate Restrictions can be imposed by a lessor on how a lessee uses the real estate. It is market stand - ard, in any case, to agree upon the designated use of the real estate. 6.13 Tenant’s Ability to Alter and Improve Real Estate Lessees are not permitted to change the fixtures and fittings of the leased real estate without the written approval of the lessor. The lessor can impose conditions on such work, and parties can make arrangements about the reversal of any changes at the end of the lease. 6.14 Specific Regulations Specific regulations apply to residential leas - es, for example, the Dutch Housing Act gives municipalities the right to regulate short stay through the issuance of a housing regulation, the Minor Repairs (Tenant’s Liability) Decree sets out the rules for lessees and lessors regarding minor repairs of the leased real estate and the Good Lessorship Act, which led to (i) the introduction of a basic norm that lessors must adhere to (a “good lessor” norm) and (ii) the assignment of certain powers to municipalities to take enforce - ment action and the power to introduce a permit requirement for the letting of residential prem - ises in disadvantaged neighbourhoods. 6.15 Effect of the Tenant’s Insolvency By law, either party can terminate the lease contract with due observance of a three-month notice period in the event of the lessee’s bank - ruptcy.
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