SLOVENIA Law and Practice Contributed by: Blaž Ogorevc, Miha Štravs and Blaž Murko, Odvetniki Šelih & partnerji, o.p., d.o.o.
6.11 Insurance Issues The person responsible for paying the costs of insuring real estate that is the subject of a lease can differ depending on the subject of the lease. For instance, for leases of residential buildings, it is most common that insurance is procured and paid for by the landlord. Similarly, for leases of commercial buildings, the landlord usually procures insurance for the subject of the lease, covering fire, storm, hail, water damage, etc. However, the costs are commonly shifted to the tenants as part of the operating costs. Also, the landlord’s insurance policies do not usually cover all risks, eg, tenant’s property or interrup - tion of business, which are in turn insured by the tenants themselves. Nevertheless, in triple net leases, which are common in commercial sale and leaseback transactions, all costs of insuring the real estate that is the subject of a lease are borne by the tenant. Since most business insurance policies did not expressly cover the coronavirus pandemic, which resulted in the interruption of business, it has proven to be difficult for tenants to recover rent payments and other costs. 6.12 Restrictions on the Use of Real Estate Generally, the parties to a lease agreement are free to agree on restrictions on the use of the subject of the lease. There are no specific regu - lations and/or laws regarding restrictions on how a tenant uses the real estate, whereas provisions of law operate with the term “ordinary use” in different contexts. For this reason, restrictions are commonly regulated contractually. Statutory provisions governing the prevention of restric - tion of competition must be complied with.
6.13 Tenant’s Ability to Alter and Improve Real Estate The Obligations Code prescribes that, if the ten - ant made any alterations to the subject of the lease, it is obliged to return the subject of the lease to the landlord after the lapse of the lease term in the same condition as it was before. The tenant may remove the improvements it has made to the subject of the lease, provided that it is possible to remove them without damage to the subject of the lease. Nevertheless, the land - lord may retain the improvements if it compen - sates the tenant for their value. In lease agree - ments, this matter is typically regulated in detail. 6.14 Specific Regulations As described in 6.2 Types of Commercial Leas- es , specific provisions prescribed by the Hous - ing Act apply for leases of residential buildings and specific provisions prescribed by the Agri - cultural Land Act apply for leases of state- or municipality-owned agricultural land. Previously, leases of business buildings and business prem - ises were also regulated by the Business Build - ings and Business Premises Act. The intervening coronavirus legislation also made distinctions between asset classes and, for instance, regu - lated measures applicable solely to leases of business buildings and business premises. 6.15 Effect of the Tenant’s Insolvency Upon commencement of bankruptcy proceed - ings, the insolvent debtor acquires the right to terminate lease agreements concluded before the commencement of the insolvency proceed - ings by giving one month’s notice, notwith - standing the general rules laid down by law or contractually on the right to terminate the lease agreement. The exercise of the right of termina - tion is without prejudice to the right of the other party to the lease agreement to claim from the insolvent debtor compensation for damage suf -
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