The issue of unauthorized use of real estate is a common legal issue affecting owners of premises subject to lease or use. Compensation for unauthorized use of real estate applies to situations in which a person uses real estate (premises, building, land) without the owner's consent or the relevant agreement, and particularly when the owner's consent or the agreement between the parties has ceased.
One typical example is when former tenants, despite a valid termination of the lease, continue to occupy the premises. In such circumstances, the landlord has the right to seek compensation for unauthorized use of the property .
Legal basis and nature of the claim
The legal basis for a claim for compensation for non-contractual use of real estate is primarily Article 224 § 2 and Article 225 of the Civil Code (CC). These provisions govern the liability of an independent possessor in bad faith for the use of real estate.
An autonomous possessor who acted in good faith, i.e., was unaware that they were using the property without legal title, is obligated to pay compensation for the use of the property from the moment they learned of a lawsuit filed against them for the release of the property and is responsible for its wear and tear, deterioration, or loss, unless the deterioration or loss occurred through no fault of theirs (Article 224 § 2 of the Civil Code). Similar principles apply to autonomous possessors in bad faith (Article 225 of the Civil Code). Determining the moment at which the possessor became autonomous possessors in bad faith is crucial in this context. Generally, a former tenant who, despite the termination of the lease agreement, has not vacated the premises is acting in bad faith because they know they no longer have the right to control the property.
The nature of the claim for compensation for unlawful use is a supplementary claim to the debt collection claim (for the release of the property) or an independent claim when the release of the property has already taken place, but the owner wishes to claim compensation for the earlier period of unlawful occupation.
Amount of compensation
The amount of compensation for unauthorized use of real estate depends on the specific circumstances of the case. Case law and legal doctrine assume that this compensation should correspond to the market rent that the owner could obtain if "possession were based on law" (e.g., Supreme Court judgment of May 23, 1975, II CR 208/75). In practice, this means that in order to estimate the amount of compensation, it is best to rely on the opinions of property appraisers or present evidence in the form of market offers for similar properties in a given location and of a similar standard.
It's worth noting that compensation for unauthorised use is not the same as rent. Even if the parties previously agreed on a specific rent rate, after the lease expires and the unauthorised use occurs, the compensation due may be higher or lower than the previous rent, depending on current market rates.
Scope of liability of the former tenant
In addition to compensation for non-contractual use, the owner may also pursue other claims from the former tenant, including:
- Compensation for damage resulting from wear and tear, deterioration, or loss of the item (Article 224 § 2 of the Civil Code and Article 225 of the Civil Code). In the case of a bad faith possessor, the claim also covers any damage that goes beyond normal wear and tear and that occurred during the period of non-contractual use.
- Return of profits that the owner could not obtain due to non-contractual use (Article 225 of the Civil Code). This applies, for example, to situations where the property could generate income from activities other than rental.
Statute of limitations for claims
Claims for compensation for non-contractual use of real estate are subject to a six-year statute of limitations (Article 118 of the Civil Code). This period runs from the date the claim became due, i.e., from the date the owner could have demanded payment for the period of non-contractual use. In the case of periodic claims (e.g., monthly compensation), the limitation period runs separately for each individual claim.
The process of claiming compensation
Claiming compensation for unauthorized use of real estate typically requires initiating legal proceedings . Before filing a lawsuit, it's a good idea to demand payment from the former tenant, setting a reasonable deadline. This demand, prepared in writing, can serve as evidence in court proceedings.
The claim must clearly specify the period for which compensation is sought and its amount, supported by appropriate evidence (e.g., expert opinion, rental offers). During the proceedings, the court will examine whether the use without a contract actually occurred, its duration, and the market value of the use of the property.
Property owners struggling with unauthorized use of their property have effective legal tools at their disposal to pursue compensation. It's crucial to act quickly and gather the appropriate evidence to effectively pursue their rights in court.
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