Whether you are a tenant or a landlord, it is crucial to understand all the rights and obligations that arise from a rental agreement. Residential lease agreements are regulated in detail by the Housing Act, which also defines the mandatory components of a rental contract. Including these required elements in the lease agreement ensures a high level of security and smooth “legal life” of the contract and the lease relationship. In this article, we will outline the key steps and provide tips to help you rent or lease a property in Slovenia safely and with peace of mind.

Signing the Lease Agreement

One of the fundamental steps is signing a rental contract that clearly defines the rights and obligations of both parties. It is essential that the agreement includes all legally required components, ensuring a high level of legal protection. For additional security, it is recommended that the agreement be executed in the form of a directly enforceable notarial deed, as this allows for the swift and straightforward fulfillment of contractual obligations without prolonged litigation. Concluding the contract in this form is crucial for the property owner or lessor, particularly for two reasons: the enforcement of the tenant’s financial obligations (payment of rent and costs as stipulated in the agreement) and the vacating and return of the property to the lessor at the end of the lease term. If the tenant breaches the contract, for example by failing to pay rent or by not returning the property upon termination of the lease, the owner can immediately initiate enforcement proceedings. In this process, the court does not verify the facts regarding the existence of the claim, as the contract is already considered valid, provided certain conditions are met. This means that the property owner can enforce their rights more quickly and with less uncertainty.

Mutual respect for obligations is the foundation of a successful lease relationship. The property owner must report rental agreements to the Financial Administration, especially if the tenants are legal entities, and must inform the building manager of new tenants and any changes in the lease arrangement.

Ensuring the Legal Validity of the Lease

A property can only be rented out by its legal owner. Before signing a contract, tenants should verify ownership by checking the land registry extract or other relevant documents. If the owner authorizes another person to lease the property, the authorization must be in writing and notarized, as oral authorizations can pose unnecessary risks for tenants.

If the ownership of the property changes, this does not affect the existing lease agreement, as the new owner assumes all rights and obligations outlined in the lease. Additionally, if the number of occupants in the rental unit increases (e.g., due to the birth of a child), the landlord is required to sign an annex to the contract reflecting the new circumstances.

What Happens at the End of the Lease?

If a tenant passes away, the landlord is required to sign a lease agreement under the same conditions with the tenant’s spouse, cohabiting partner, or one of their immediate family members, provided that person was living in the apartment at the time of the tenant’s death, had registered permanent residence there, and was mentioned in the lease agreement. A written request for the continuation of the lease must be submitted to the landlord within 90 days of the tenant’s death.

A tenant can terminate a lease agreement without providing a reason, but a 90-day notice period applies. On the other hand, a landlord can only terminate a lease agreement based on either fault-based or non-fault-based reasons. However, the law imposes significant restrictions on both types of terminations.

A fault-based termination must be either explicitly stated in the contract or legally defined. Additionally, the tenant must first receive a written warning about the violation and be given 15 days to correct it. A non-fault-based termination is much more challenging and, in practice, almost impossible for landlords. This is because, in such cases, the landlord is required to provide the tenant with an alternative suitable residence. Due to these legal requirements, long-term rental agreements for an indefinite period are rarely concluded.

Conclusion

Renting a property is a significant decision that requires careful consideration of all details. Whether you are a tenant or a landlord, make sure that all legal procedures are correctly followed. Before signing the contract, read and understand its terms, verify the ownership of the property, and comply with all legal requirements to ensure a smooth and trouble-free rental experience.

When it comes to divorce, one of the most challenging aspects is the division of joint property. How is property acquired together by both partners divided? What are the rules, and what should you be mindful of? In this post, we provide clear and practical explanations.

What is joint property?

Joint property includes everything that spouses or cohabiting partners acquire through work or for compensation during the duration of the marriage or cohabitation. This includes real estate, movable property (cars, artwork, etc.), monetary assets, and even business shares. However, joint property does not include things acquired gratuitously, such as gifts or inheritance.

How does the division of joint property proceed?

The division process takes place in two phases:

1. Determining the scope of joint property – What exactly is considered joint property?
2. Determining shares – What proportion of the property belongs to each partner?

Equal shares or adjusted division?

According to the Family Code, the assumption is that the spouses’ shares of joint property are equal (50-50), but one partner can prove that their contribution was greater and thus request a different division (e.g., 60-40, 70-30).
It is important to understand that the contribution is not always linked solely to income. The court will also consider other factors such as childcare, household duties, or assistance in maintaining and increasing the property. So, if one spouse earns more, it doesn’t automatically mean their share will be larger. Sometimes, the spouse who has contributed more through domestic work and childcare may end up with an equal share of the joint property, even if they earned less.

The court will often find that one partner has a larger share if they contributed their separate property to the joint estate, for example, money gifted by parents for purchasing a home. In such cases, the court may assign adjusted shares.

How does the division itself take place?

A spouse who requests the court to determine that a particular asset belongs to joint property will have to assert and prove that the property was acquired during the marriage or cohabitation and that it was acquired through work or compensation. One of the more complicated aspects of the process is determining when the cohabitation or marriage begins and ends. The law states that cohabitation is not only physical living together but also includes economic interdependence, emotional attachment, and intimate connection. Although it is usually difficult to pinpoint the exact moment the partnership begins or ends, the court will take into account all important circumstances and facts, such as shared life, assistance in the household, or financial contributions.

Once the scope of joint property and the spouses’ shares are determined, the division process itself follows. This usually takes place in a non-litigation procedure according to the rules for dividing joint property. The joint property of the spouses is divided as a whole, so the court, in deciding which spouse receives specific items from this property, considers the needs of the participants in the process (the divorced spouses) and their legitimate interests in the individual (real and movable) items. Natural division takes precedence (e.g., one partner retains the house, the other keeps other assets), but if this is not possible, a civil division follows – the sale of the property and the division of the proceeds.

Why is a lawyer crucial?

Division procedures are often time-consuming and complicated. A lawyer can help protect your interests, understand your rights, and achieve the best possible outcome. They also increase the likelihood of reaching an agreement without prolonged litigation.

Possession refers to the actual control over an object, which does not necessarily tell us who owns the object or who has the right to possess it – it only tells us who currently has physical control over the object. Control can be direct, when the object is directly in our possession, or indirect, when possession is exercised through another person. Often, the owner of an object is also its possessor, but this is not always the case. Therefore, we distinguish between ownership possession, when the owner has the object in possession and non-ownership possession, such as in the case of a tenant who possesses an object over which they have no ownership rights.

Possession is a relationship of physical control over an object, which meets the following criteria: external visibility, permanence, exclusivity and accessibility to the possessor. Possession ceases when the external appearance of control over the object ends.

A possessor can claim protection of possession in two ways – self-help and judicial protection (filing a lawsuit). The possessor has the right to self-help against anyone who unjustly disturbs or deprives them of their possession. However, the condition is that the danger is imminent, self-help must be immediate and necessary, and the manner of self-help must fit the circumstances of the danger – for example, when we catch a thief trying to steal our bicycle and prevent him from doing so.

Both direct and indirect possessors have the right to judicial protection of possession. In possession protection proceedings, only possession is relevant, so questions of ownership are not dealt with in possession disputes.

Judicial Protection of Possession

The court, in a lawsuit for disturbance of possession, provides legal protection to the possessor for both the disturbance and the deprivation of possession. It is not relevant whether the possessor had the right to possess the object or whether they were acting in good faith. The court grants protection based on the last state of possession and the disturbance that occurred. Even a possessor who acquired possession by force, secretly, or by abuse of trust has the right to protect possession, except in exceptional cases (e.g., a thief has possession protection against third parties, but cannot claim it directly against the previous possessor who caught them stealing). A possessor is not entitled to legal protection if the disturbance or deprivation of possession is based on the law.

A possession lawsuit can be filed by any last peaceful possessor who has been the victim of disturbing behavior, against the person disturbing the possession or an indirect disturber – someone who orders, approves, or benefits from the disturbing action.

In the court procedure, the plaintiff must prove: that they had possession of the object before the disturbance, that their possession was indeed disturbed, that the defendant was the one who interfered with the possession, and that the defendant’s actions were unlawful. Whether possession was disturbed is decided by the court in each case individually. Even a minor change in the state of possession does not necessarily mean disturbance or deprivation of possession. The interference must be such that it either prevents or significantly hinders the exercise of possession.

The process begins by filing a lawsuit with the competent District Court. The deadline for filing the lawsuit is 30 days from the day the possessor learned of the disturbance and the perpetrator or 1 year from the day the disturbance occurred. The deadline for a response to the lawsuit is 8 days.

The goal of the possession lawsuit is to restore the previous state of possession – it is preventive protection, as we aim to prevent future disturbing actions. In the lawsuit for disturbance of possession, the court will deal with two main issues: the last state of possession and the disturbing action, but it will not decide on the right to possess, the legal basis, the fairness or unfairness of possession, or any compensation claims. To pursue these claims, another procedure must be initiated, such as a lawsuit to determine ownership rights, a lawsuit for the return of property based on ownership rights, a compensation lawsuit, etc.

The defendant can oppose the lawsuit only with arguments related to the actual state of possession. At the end of the procedure, the court will issue an order prohibiting the defendant from further disturbing the possession or requiring the return of the deprived possession and other measures necessary to prevent further disturbance.

Overview of a commercial lease

A commercial lease is a legally binding contract between a business tenant and a landlord, governing the rental of commercial real estate, such as office spaces, retail properties, warehouses or industrial buildings. This agreement grants the tenant the right to use the property for business activities over a specified period. In exchange for these privileges, the tenant is required to pay rent. The lease thoroughly outlines the rights and obligations of both the landlord and the tenant. A clear understanding of these responsibilities is critical for maintaining a smooth relationship and avoiding potential disputes.

The parties to a commercial lease are referred to as the lessor (the landlord) and the lessee (the tenant). In some cases, the landlord may require a guarantor or surety, a person who agrees to cover any losses incurred by the landlord if the tenant defaults on the rent or breaches other terms of the agreement.

Commercial property lease under Slovenian law

On June 19, 2021, the amendment SZ-1E came into effect, which, in its Article 52, repeals the Act on Business Buildings and Business Premises (ZPSPP) from 1974, which specifically regulated lease relationships. There is currently no new law governing this area, therefore, the provisions of the Obligations Code (OZ) concerning lease agreements, specifically Articles 587 to 618, now apply to all lease relationships regarding business premises established from June 19, 2021, onwards.

The ZPSPP specifically governed lease relationships, outlining general concepts and the formation and termination of such agreements. In contrast, the OZ provides more detailed regulations on the obligations of lessors and lessees, including the handling of subleasing, material defects, and maintenance responsibilities. With the repeal of the Act on Business Buildings and Business Premises (ZPSPP), the mandatory minimum notice period of 12 months is no longer applicable, nor is the requirement for judicial termination of the lease agreement, the demands for vacating the premises and the requirement for the written form of the contract.

Key provisions in a commercial property lease include:
• The type of property
• The terms and renewal conditions of the tenancy
• The base rent, which may depend on the type of lease
• The type of business permitted on the premises
• Security deposits and damage deposits
• Rules regarding subletting the property
• Conditions for terminating the tenancy, which may include a fixed or periodic end date or a break clause
• Responsibilities for landlord and tenant improvements
• The tenant’s ability to assign or sublet the premises
• Insurance requirements

Distinction between commercial and residential leases

Although both commercial and residential leases are governed by the same principle—the exchange of property use for monetary payment—significant differences exist between the two. A commercial lease is designed for a tenant leasing space for business purposes, while a residential lease is used for living accommodations.

In commercial leases, both parties are presumed to have a higher level of business knowledge than in residential leasing situations. Consequently, there is less governmental protection for commercial tenants, offering greater scope for negotiation. Moreover, commercial leases tend to include more complex terms and provide enhanced legal protections for the involved parties.

Key landlord’s rights and obligations

Right to rent: The landlord is entitled to receive rent as stipulated in the lease agreement. Details such as rent amounts, payment schedules, and provisions for rent increases (e.g., annual escalations) are outlined within the lease.

Right to inspect and maintain: The landlord usually retains the right to access the property for inspections, repairs, and maintenance. However, this right must be balanced with the tenant’s right to quiet enjoyment, which prevents unreasonable interference.

Obligation to provide a safe and usable property: The landlord must ensure that the property is suitable for the tenant’s business operations and complies with relevant health, safety and building regulations. This obligation includes undertaking necessary repairs and maintenance unless otherwise specified in the lease.

Obligation to respect quiet enjoyment: While landlords retain certain rights, they are required to ensure that the tenant can conduct business without unnecessary disturbances.

Obligation to address major repairs: Generally, the landlord is responsible for significant structural repairs, including those concerning the roof, foundation and common areas, unless the lease states otherwise.

Key tenant’s rights and obligations

Right to quiet enjoyment: Tenants are entitled to use the leased premises without undue interference from the landlord, provided they comply with the lease terms.

Right to make improvements: Depending on the lease, tenants may have the right to make alterations or improvements to the property, subject to the landlord’s approval. At the lease’s end, the tenant may be required to restore the premises to its original condition.

Obligation to pay rent: Tenants must pay rent punctually in accordance with the lease. Failure to do so may result in penalties, legal action or eviction.

Obligation to use the property according to the lease: The tenant must use the premises for the agreed-upon purpose. For instance, if the property is leased for retail operations, the tenant cannot alter the nature of the business without the landlord’s approval.

Obligation to maintain the interior: Tenants are typically responsible for maintaining the interior of the leased premises, including minor repairs and the upkeep of equipment and furnishings.

Obligation to adhere to lease terms: Tenants are required to comply with all other lease conditions, such as paying utilities, adhering to zoning laws and securing necessary insurance coverage.

The role of commercial law in property agreements

Commercial law governs property leases, contracts and disputes, playing a crucial role in the landlord-tenant relationship. Key areas include:

• Contract law: The lease agreement constitutes a binding contract, and both parties must adhere to its terms.
• Zoning laws: Commercial properties are subject to zoning regulations, which dictate the type of business activities permitted in a given area.
• Dispute resolution: Commercial law outlines the processes for resolving disputes, including mediation, arbitration, or litigation.

Both landlords and tenants are encouraged to consult a commercial lawyer to navigate these complexities and ensure that their rights are upheld.

How can commercial lawyers assist?

Commercial lawyers specialize in the legal aspects of business operations, including property leases and tenant rights. They provide critical legal advice and representation, offering assistance with:

• Lease negotiations: Ensuring lease terms are equitable and protective of the client’s interests.
• Dispute resolution: Mediating disputes or representing clients in legal proceedings.
• Legal compliance: Advising on compliance with laws governing commercial properties.

Hiring a commercial lawyer at the outset of the leasing process can help prevent costly disputes and safeguard the interests of both parties.

Conclusion

Understanding commercial property landlord-tenant rights is essential for both landlords and tenants to ensure smooth and legally compliant relationships.

From drafting strong lease agreements to resolving disputes, both parties must have a clear understanding of their rights and responsibilities.

Engaging an experienced commercial lawyer can make the difference in protecting your interests, whether you’re negotiating lease terms or seeking legal recourse in a dispute.

For landlords and tenants alike, a proactive approach to understanding and enforcing commercial rights can prevent conflicts and support successful, long-term business operations.