For the payment of tax obligations assumed by the tenant, such as IPTU (property tax), proof of the administrative payment of the tax debt is sufficient to prove the payment of taxes and fees required by article 71 of the Lease Law for the purposes of filing a renewal action, provided that the payment of the debt is proven during the process.
The tenant’s right to maintain the lease in order to preserve the goodwill (commercial point) that it established, in the exercise of its business activity in the leased property, is provided for in the legislation, but it is not absolute and requires care.
In order to claim renewal of the lease contract, it is necessary to comply with the legal requirements and prove that the tax debts of the property for the period in which it was used by the lessee have been settled. Therefore, the payment of the taxes in installments must have occurred before the lawsuit is filed.
The demonstration of compliance with the tax obligations assumed by the tenant may occur in two stages: Demonstration of the installment plan prior to the lawsuit and proof of the subsequent payment of the installments negotiated with the tax authorities.
Once the legal requirements for the compulsory renewal of the commercial lease have been met, and if the parties do not agree on the amount of rent to be renewed, the judge will arbitrate the amount of the rent based on the expert conclusion for assessing the market value for renting the property.
In view of the above and the various peculiarities of the subject, we recommend the assistance of a lawyer specialized in real estate law, who will know how best to act in each specific case, so that the right to renew or not the lease agreement is preserved in the best way for the client.