Real estate lease disputes are among the most common commercial disputes in Belarus. They involve both individuals and companies, covering issues from lease terms and contract termination to debt recovery.
Even when a written lease agreement exists, disagreements often arise on issues such as:
- The amount and procedure for paying rent.
- The condition and suitability of the leased property.
- The term of the agreement and its renewal.
- Termination of the agreement and tenant eviction.
- Compensation for damages and unjust enrichment.
Case law shows that disputes often arise either from incomplete contract terms or from one party’s failure to fulfill its obligations. Therefore, it is crucial for tenants and landlords to understand key risks and legal consequences in order to protect their interests effectively.
Most Common Causes of Disputes
Disputes over real estate leases arise quite frequently, even with a written contract. In practice, several main reasons are the most common sources of conflict between tenants and landlords.
Disagreement on Rent Amount
One of the most common causes of disputes is the amount of rent and the payment procedure. Sometimes, the parties fail to agree on the exact amounts, indexation terms, or payment deadlines. This can lead to arrears, penalties, and the need to collect the debt.
Condition and Suitability of the Leased Property
Conflicts often arise due to differences in understanding of the condition of the room or its suitability for the stated purposes. For example, a tenant may complain about malfunctions or failures of engineering systems or non-compliance of the premises with the requirements of the contract, while the landlord considers these points to be insignificant or the obligation to eliminate defects lies with the tenant.
Contract Term and Renewal
Misunderstanding of the terms of the contract extension, automatic renewal or lack of agreed deadlines often leads to disputes. The tenant may continue to occupy the premises after the lease expires, while the landlord may demand that the tenant vacate the premises or renegotiate the terms.
Termination and Eviction
Termination of the lease agreement is another source of conflict. The parties may interpret the grounds for termination of the contract in different ways: violation of the terms, late payment, improper use of the premises. Eviction of a tenant without following the established procedure often leads to legal proceedings.
Compensation for Damages and Unjust Enrichment
Disputes may also involve claims for damages or recovery of unjust enrichment. For example, a landlord may claim reimbursement for repairs to damaged property, and a tenant may refund an overpayment for unproven services or excessively charged rent.
Understanding these reasons allows the parties to provide in advance in the contract measures to prevent disputes, clearly define the rights and obligations, as well as minimize financial and legal risks.
Pre-Litigation Dispute Resolution
Before going to court, parties can (and often should) attempt to resolve the conflict amicably. Pre-litigation settlement reduces time and financial costs and helps maintain business relationships between tenants and landlords.
Negotiations Between Parties
The first step is to openly discuss disagreements. Negotiations help clarify each party’s position, agree on arrears amounts, repayment deadlines, or the procedure for rectifying identified violations. Clear and constructive communication often leads to a mutually acceptable solution without court involvement.
Mediation and Claim Procedures
If direct negotiations fail, an independent mediator can be involved. Mediation assists parties in finding a compromise and avoiding lengthy litigation. At this stage, it is also important to prepare a claim or notice of breach to formally document the party’s position and set deadlines for resolving the issues.
Documentation and Recording Violations
Documenting contract violations plays a key role in dispute resolution. Preparing reports on the property’s condition, rent arrears, or other breaches records the facts and can be used in court if pre-litigation resolution fails.
Implementing these measures helps minimize the risk of conflict escalation, accelerate dispute resolution, and increase the chances of a fair outcome without court intervention.
Debt Recovery under Lease Agreements via Notary Enforcement Note
In Belarus, one effective method of accelerated debt recovery under lease agreements is using a notary enforcement note. This mechanism allows debt collection without going to court, provided there is no dispute between the parties.
What Is a Notary Enforcement Note?
A notary enforcement note is a special endorsement placed by a notary on documents, certifying the debtor’s obligation to pay a specified sum. In lease agreements, this may include:
- Rent arrears.
- Payment of utility and maintenance charges.
- Penalties and fines for breach of contract terms.
Once the enforcement note is issued, the document serves as a basis for compulsory execution through the bailiff service.
Advantages and Risks
Advantages:
- Reduces the time required to recover debt.
- Simplified procedure compared to court proceedings.
- The enforcement note is an enforceable legal document.
Risks:
- Cannot be used if the contract is improperly drafted.
- Disputes over debt amount or payment terms may prevent enforcement.
- Does not protect against other potential claims by the tenant, such as property quality issues.
Using a notary enforcement note allows landlords to recover debt quickly and efficiently if no dispute exists between the parties. This tool is especially useful in commercial leases and in disputes with individuals who delay payments.
Litigation in Lease Disputes
If pre-litigation settlement fails or is impossible, a dispute arising from a real estate lease agreement proceeds to cour. Litigation is the primary tool for protecting the rights and interests of parties when contract terms are violated.
Procedure for Filing a Claim
To file a claim, it is necessary to prepare a set of documents, including:
- The lease agreement and any amendments.
- Handover and acceptance reports for the property.
- Correspondence and claims that demonstrate attempts at pre-litigation settlement.
- Calculations of arrears and other financial claims.
Claims are filed in the court having jurisdiction over the location of the real estate. It is important to clearly state the relief sought in the claim, such as debt recovery, contract termination, compensation for damages, or other remedies.
Debt Recovery Practice in Lease Disputes
Judicial practice shows that recovery of rent and associated expenses is successful when there is a written contract and documented evidence of arrears. For example, courts often satisfy landlords’ claims when handover reports and notices of arrears are presented, even if the tenant partially disputes the amounts.
Examples of Court Decisions and Their Consequences
In some cases, courts have ruled in favor of landlords, ordering recovery of the full amount of arrears, including penalties and fines for late payment. In other situations, where contract terms were unclear or formal procedures were not followed (e.g., delayed submission of claims), the court might reduce the recoverable amount or consider part of the claim unfounded.
Thus, litigation in lease disputes requires thorough document preparation and a strong evidentiary base. A properly drafted contract, handover reports, and claims significantly increase the likelihood of a successful outcome in court and allow parties to effectively protect their financial and property interests.
Specifics of Disputes Involving Legal Entities and Commercial Real Estate
Leases of commercial property and agreements with legal entities have certain features that distinguish them from disputes between individuals. This is due to the scale of business, the volume of financial flows, and the need to account for corporate interests.
Features of Commercial Lease Agreements
Commercial lease agreements usually include more detailed terms:
- Precise description of the property and its technical specifications.
- Rules for using the premises for business purposes.
- Payment procedures, including additional charges (utilities, maintenance costs, taxes).
- Insurance obligations and responsibilities of the parties.
These contracts often contain provisions on penalties, fines, and indemnification obligations, which increases the requirements for precision and legal review.
Liability for Damages and Business Risks
In commercial leases, the parties’ liability may be substantial. Violating lease terms can lead to financial losses, business disruptions, and reputational risks. Legal entities must consider the consequences of late payments, property damage, violations of the terms of use of the premises, and other risks that may lead to damages being recovered through the courts.
Impact of Corporate Conflicts on Lease Disputes
Corporate conflicts between founders or partners can complicate the resolution of lease disputes. For example, a decision to terminate a lease or amend the terms may be contested internally. In such situations, courts consider internal corporate documents, management authority, and decision-making procedures, which requires careful preparation of the evidence base.
Understanding these aspects allows legal entities to minimize risks and effectively protect their interests in lease disputes, especially when working with large commercial properties.
Recommendations for Risk Minimization
In order to reduce the likelihood of disputes arising under lease agreements, it is important to think about all the terms of the lease in advance and arrange them correctly. Here are the measures we recommend to take:
Thorough Preparation and Review of the Lease Agreement
The contract must be drawn up taking into account all the nuances of the leased facility and the specifics of the relationship between the parties. It is important to check the accuracy of the data, the correctness of the indication of the amount of rent, the terms and conditions of the extension and the liability of the parties. The more detailed the contract is, the fewer opportunities for disagreement.
Proper Documentation of Payments and Property Condition
It is necessary to document all payments and the condition of the object during the transfer. Acceptance certificates, payment receipts, and photographs of the premises help prevent disputes concerning arrears, property damage, or defects.
Inclusion of Termination and Dispute Resolution Clauses
The contract should include clear terms of termination of the lease, the procedure for notifying the parties and possible sanctions. It is also useful to provide mechanisms for pre-trial dispute resolution – negotiations, mediation or a claim procedure.
Competent legal support plays a key role in rental disputes. Our lawyers can properly prepare and verify the contract, advise on the rights and obligations of the parties, and ensure that your interests are protected in the event of a conflict. By contacting professionals, you can minimize risks, maintain business relationships, and effectively resolve any real estate rental disputes.
Conclusion
Lease disputes are a common occurrence for both individuals and legal entities. The main causes of conflicts are inconsistencies in rent, the condition of the facility, issues of contract extension and termination, as well as compensation for damages.
Effective dispute resolution requires careful preparation: careful consideration and verification of the contract, recording of payment and condition of property, as well as prescribed termination conditions and conflict resolution methods. Pre-trial measures, including negotiations and mediation, often make it possible to resolve a conflict faster and at lower cost.
If the matter proceeds to court, proper paperwork and evidence base significantly increase the chances of a positive decision.
Our Ambylegal team is ready to accompany the entire process: analyze and draft lease agreements, advise on the rights and obligations of the parties, represent clients in court and other bodies, and develop protection strategies in any lease disputes. Contacting professionals helps to minimize risks and effectively protect your property and financial interests.
Contact us
If you have any questions related to disputes under real estate lease agreements in Belarus, we will be happy to help! Our long-term experience will help you choose a lawyer to represent your interests.
- +37529142-27-19 (WhatsApp, Viber, Telegram);
- info@ambylegal.by.
