LUXEMBOURG Law and Practice Contributed by: Claire-Marie Darnand, Victorien Hémery, Johan Léonard and Benjamin Marthoz, Stibbe
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, unless the lease exceeds nine years. Registration of the lease agreement can be made on a voluntary basis with the Luxembourg Registration Duties, Estates and VAT Authority. 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 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 that would be attributable to the tenant. For commercial lease agreements, the com - mon security is a security cash deposit, a first demand bank guarantee or other equivalent guarantee covering an amount limited by statute to six months of rent. 7. Construction 7.1 Common Structures Used to Price Construction Projects There are three main methods used to price con - struction projects, as follows: • the fixed price contract is most appropriate where simplicity of management is a consid - eration due to the size of the project or the management team; • the cost-plus contract allows the contractor to be paid the full price for all agreed-upon construction-related costs and overheads, and a fee representing the contractor’s profit; and
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