Recent News

July 2008
Major change in landlord and tenant law.

Under the provisions of the Civil Law (Miscellaneous) Provisions Act, 2008 ("the 2008 Act"), Landlords and Tenants of commercial premises may now agree to contract out of the Landlord and Tenant Acts which provide a right to Tenants to a new tenancy in certain circumstances after 5 years.

Up to now:
• Landlords were reluctant to lease or let a commercial premises for any more than 4 years, 11 months so as to avoid a Tenant having a statutory right of renewing the tenancy for evermore;
• The Landlord and Tenant Acts permitted the parties to contract out of this statutory right but only in relation to business premises that were being used as offices.

The 2008 Act now allows any Tenant of any commercial premises to contract out of its renewal rights strictly provided they receive independent legal advice prior to the commencement of the tenancy and sign a waiver.

This means that parties can now agree a term of more than 5 years which will reflect the commercial terms and realities with the knowledge that a Landlord will have vacant possession of a premises at the end of the term if required.

The rule changes will not affect existing tenancies as the conditions for waiving renewal rights will not have been complied with as Tenants will not have signed a valid waiver after receiving prior independent legal advice before the commencement of the tenancy.

The law change takes effect from the 20th July 2008 and the effect of the 2008 Act is not retrospective.

For further information in relation to the above, please contact Eamonn P. Muldoon.