How to renew a lease

How to renew a lease



One of the essential conditions of the lease agreement,defining the nature of this type of civil law transactions, is the period by which the leased object is transferred to the tenant for use. After the expiration of this period, with the mutual desire of both parties, the lease can be extended. The issue of extending the lease agreement most often arises in cases when a land plot that is in municipal ownership is rented.





How to renew a lease


















Instructions





1


Renewal of the lease in the general caseis regulated by item 1 of article 621 of the Civil Code of the Russian Federation. It states that the lessee who has fully fulfilled all of its obligations stipulated in the lease agreement, after the expiration of the term of this agreement, with other things being equal, has the pre-emptive right to extend the old one or conclude a new lease. In cases where there are land plots owned by municipalities, paragraph 4 of Article 53 of Federal Law No. 135-FZ "On Protection of Competition" should be used. It establishes that until July 1, 2015, the extension of lease agreements with representatives of small and medium-sized businesses, if there is no reason for their early termination, is permitted without holding tenders, auctions, auctions and contests. Exceptions are those subjects of small and medium-sized business, which are specified in part 3 of Article 14 of Federal Law No. 209-FZ of July 24, 2008, and those engaged in the extraction and processing of minerals.





2


Tenant who wants to extend the leaseland with the municipality, it is necessary to apply in advance with a statement about this to the relevant municipal authorities. But even in the event that such a statement was not filed, if the landlord does not object, in accordance with paragraph 2 of Art. 621 of the Civil Code, the lease is automatically considered to be extended. In this case, its effect can be terminated on the basis of a notice sent by one of the parties to its counterparty.





3


To be sure that the right to usethe leased plot will remain with the former tenant, it will need to submit to the municipal authorities the following package of documents: - application for the extension of the lease contract for the municipal property object with the details of the initial contract, - a copy of the document confirming the identity of the applicant - an individual or legal entity, confirming the powers of the person acting as a representative, - a copy of the entry from the Unified State Register of Legal Entities or the USRIC, the issuance of which must be less than 1 month before the date of the - copies of the constituent documents with all the amendments, - a copy of the certificate of assignment of the taxpayer identification number, - a certificate from the accounting department on the book value of the assets, - an extract from the decision of the representative body of the legal entity on approval of the lease extension, - certificates confirming the absence of payment arrears taxes to budgets of three levels - copies of contracts with municipal services and certificates confirming the absence of debts for utility payments.