real estate

Tenant’s right to unilaterally extend lease agreement during the coronavirus epidemic

Entry into force of the Anti-Crisis Shield, i.e. the 31 March 2020 amendments to the Anti-Crisis Act, has had a strong impact on the real estate market, especially the rental market for space at shopping centres. In addition to the widely discussed Art. 15ze, which has extinguished mutual obligations of the parties to lease agreements, the parliament has also introduced another important provision which may significantly affect the rights and obligations of not only the parties to lease agreements, but also other participants in commerce.

Expiry of mutual obligations of parties to lease agreements in shopping centres

As a result of the parliament’s intervention, mutual obligations of parties to lease agreements in shopping centres are deemed to have “expired.” Does that mean that the lease agreements have expired?

The state of epidemic and the construction process

The coronavirus epidemic is generating new problems for parties to business transactions: restrictions on business operations, supply disruptions, limited availability of staff and materials, changes in the operation of public bodies and post offices. The downtime they cause has effects not only on civil-law grounds. In addition, there is the issue of expiry of administrative permits. Do the existing regulations, and the new Anti-Crisis Shield, offer any solution?

Investor’s situation under construction contracts during an epidemic

Many investors currently carrying out construction projects or planning to start them in the near future ask us about the legal possibilities to suspend a project or even withdraw from existing contracts. The question arises whether it makes sense to continue or start projects when implementation will require large financial capital and considerable resources. In this article, we identify legal instruments that may be available to an investor who would decide to stop the performance of works or definitively withdraw from a construction contract.

Situation of contractors performing construction contracts in the private sector

The pandemic may delay the performance of construction works and increase their costs. It may even make it completely impossible for a contractor to fulfil its obligations. But how this affects the contractors’ legal situation depends on the factual circumstances of the given case and the wording of the specific construction contract.

COVID-19 and failure to act by public bodies

The solutions provided for in the Anti-Crisis Shield are intended to activate extraordinary instruments supporting businesses during the pandemic. Can changes in the running of time limits provided for by law, including proceedings before public administrative bodies and administrative courts, be regarded as such a solution?