MJ O'Connor Solicitors

Landlords and tenants of business premises should note that the Civil Law (Miscellaneous Provisions) Bill 2006, which is to be enacted shortly, contains a provision which will allow a tenant to renounce his Statutory right to a renewal of his lease (which arises by law after the tenant has been in occupation of business premises continuously for a period in excess of five years). The renunciation simply has to be in writing and the tenant must have received independent legal advice.

 

Previously a renunciation was only possible where the tenant occupied an “office” and was only effective if such renunciation was given prior to the commencement of occupation. Under the new legislation the renunciation can be entered into by any business tenant at any time, whether before the commencement of the lease or during the lease. All that is required is that it is in writing and it is entered into on foot of independent legal advice. Landlords, in particular, should give urgent consideration to the planning opportunities presented by the new provisions once they become law.

 

The Bill has been approved by Dail Eireann and is before Seanad Eireann. There is a strong possibility that it may become law prior to the summer recess. A full review of the implications of the Bill will be undertaken by the writer when it becomes law and a follow up Brief will issue shortly. 

For further information contact Brendan Curran at bcurran@mjoc.ie.