SLOVENIA Law and Practice Contributed by: Blaž Ogorevc, Miha Štravs and Blaž Murko, Odvetniki Šelih & partnerji, o.p., d.o.o.
6.13 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. 6.14 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 dam - age to the subject of the lease. Nevertheless, the landlord may retain the improvements if it compensates the tenant for their value. In com - mercial lease agreements, this matter is typically regulated in detail. 6.15 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. Previous - ly, leases of business buildings and business premises were also regulated by the Business Buildings and Business Premises Act. The inter - vening coronavirus legislation also made distinc - tions between asset classes and, for instance, regulated measures applicable solely to leases
of business buildings and business premises, though this is not applicable anymore. 6.16 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 - fered as a result of the exercise of the right of termination. As per a recent amendment of the insolvency regulations, termination of key contracts – ie, bilateral contracts, the performance of which is necessary for the smooth operation of the debt - or’s business – solely due to initiation of insol - vency (including court restructuring) proceed - ings of the debtor, is not possible. This applies even if specifically enabled in the lease agree - ment, and works both ways, for the landlord and for the tenant. 6.17 Right to Occupy After Termination or Expiry of a Lease The tenant does not have a right to continue occupying the relevant real estate after the expiry or termination of a lease, per se. If the tenant continues to use the real estate after the expiry of the lease term and the landlord does not timely object to such use, a new lease is deemed to have been concluded for an indefi - nite period. Accordingly, upon expiry of the lease agreement, the landlord needs at least to object to the continuous use of the real estate, should such use occur.
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