In June 2021, the National Assembly adopted the amendments of the Housing Act (SZ-1E). The new SZ-1 directly and significantly intervenes in the conclusion of lease agreements for business premises and commercial buildings.

With the entry into force of SZ-1E, i.e., 19 June 2021, the Commercial Buildings and Business Premises Act (ZPSPP), which has until then, as a lex specialis, comprehensively regulated the lease of business premises and commercial buildings, ceased to be valid based on Article 52 of SZ-1E.

The termination of lease agreements concluded for an indefinite period shall no longer be subject to the mandatory 12-month notice period. The length of the notice period is left to the agreement between the contracting parties or, in the absence of such agreement, the lease agreement shall be subject to an 8-day notice period under Article 616 of the Obligations Code (OZ). Furthermore, the written form requirement for the lease agreement, concluded for the lease of a business premise or commercial building, has also been eliminated. 

After the repeal of ZPSPP, it is also no longer required to terminate the lease agreement before the Court. The termination of a lease agreement shall be according to the provisions of OZ, deemed valid when served to the other contracting party and shall terminate with the expiration of the notice period.

The lessor will no longer be able to request emptying of the business premises under appropriate use of the Civil Procedure Act (ZPP) relating to the payment order. Now, the lessor will have to request emptying and return of the leased object in regular civil proceedings.

In addition, it will also be permissible to conclude a sublease agreement. There has also been a change concerning the lessor's rights in the event of a lessee's breach of the lease agreement. Thus, in case of violation of the lessee’s essential obligations, based on Article 603 of OZ and subject to the requirement of the notice period, the lessor will be able to terminate the lease agreement upon the expiration of the 15 days from the day of the request for payment, or, in the event of inappropriate use of the object of the lease, upon the expiration of the additional period, without the notice period.

With the repeal of ZPSPP, there has also been a change in the condition for the transformation of a lease agreement, concluded for a definite period, to a lease agreement, concluded for an indefinite period. A lease agreement concluded for a definite period transforms to an indefinite one based on Article 615 of OZ, if a lessee uses the object of the lease and the lessor does not object to such use.

Notwithstanding the above, the repeal of ZPSPP brings changes to contracting parties in the field of business premises and commercial building lease agreements only for lease agreements, concluded after SZ-1E entered into force since ZPSPP shall still be in use for leases of business premises and commercial buildings, which were concluded before SZ-1E entered into force, i.e., 19. June 2021.

For any additional explanations or more detailed information please contact Law Firm Senica.