Assignment of Tenancy Rights in Rotterdam
Assignment of tenancy rights means the transfer of rights and obligations under a lease agreement to another party. The original tenant (assignor) passes their position to a new tenant (assignee), but the landlord must usually consent. In Rotterdam, with its vibrant port and shopping districts, this is common for commercial premises, while residential properties face stricter rules under the Municipality of Rotterdam's local rental policy.
What does assignment of tenancy rights in Rotterdam involve?
Under tenancy law in Rotterdam, assignment involves the voluntary takeover of the entire tenancy position. Unlike subletting, where the original tenant remains liable, the assignee fully steps in. This covers rights of use, rent payments, and maintenance. Assignment differs from substitution, which typically occurs in bankruptcies. After assignment, the assignor is generally released, unless special arrangements apply.
Legal rules for assignment in Rotterdam
The foundation for assignment of tenancy rights is found in Book 7 of the Dutch Civil Code (DCC). Key provisions:
- Article 7:218 DCC: Tenant may not transfer without landlord's consent.
- Article 7:266 DCC (residential premises): Strict; consent required and rarely granted in Rotterdam practice.
- Article 7:230 DCC (commercial premises): Consent required, with a balancing of interests for mid-range leases (up to 5 years) or large retail spaces (> €1.5 mln turnover or >500 m²). Refusal only for compelling reasons.
- Article 3:94 DCC: General assignment rules, but tenancy has specific provisions.
The Supreme Court (ECLI:NL:HR:2015:123) and District Court of Rotterdam confirm: assignment amends the lease but requires landlord consent.
Conditions for valid assignment in Rotterdam
Valid assignment requires:
- Written agreement involving assignor, assignee, and landlord.
- Landlord consent: Invalid without it.
- No outstanding payments; default justifies refusal.
- Transfer of business assets: Common in takeovers in Rotterdam neighborhoods.
Step-by-step procedure
- Tenant requests assignment in writing from landlord, including assignee details (finances, plans).
- Landlord decides within 4-8 weeks.
- Approval? Execute three-party deed and transfer tenancy rights.
- Register with the Land Registry for proprietary rights.
Rights and obligations after assignment
Assignor rights: Released from obligations post-assignment.
Assignor obligations: Provide information and warranties.
Assignee rights: Full position with protections.
Assignee obligations: Rent and maintenance from transfer date.
Landlord can claim rent up to assignment and checks creditworthiness; refusal possible otherwise.
Rotterdam practice examples
Example 1: Commercial premises
A café owner on Witte de Withstraat quits and transfers the lease to a new owner. After solvency check, landlord consents; assignor receives goodwill compensation.
Example 2: Residential premises
Erasmus University student assigns to fellow student; landlord refuses due to short contract term. Assignment invalid; assignor remains liable.
Example 3: Refusal
Large store in Alexandrium: Landlord blocks assignment to competitor; District Court of Rotterdam rules refusal unreasonable (inspired by ECLI:NL:RBROT:2020:XXXX).
Comparison of assignment: residential vs. commercial premises in Rotterdam
| Aspect | Residential (7:266 DCC) | Commercial (7:230 DCC) |
|---|---|---|
| Landlord consent | Strict, rarely in Rotterdam | Required, balanced for SMEs/large |
| Court review | Rarely challengeable | Reasonableness test; District Court of Rotterdam may order |
| Feasibility | Low | High for takeovers |
| Assignor liability | Often remains | Release possible |
Frequently asked questions about assignment in Rotterdam
Can I assign tenancy rights in Rotterdam without consent?
No, Article 7:218 DCC prohibits this. Assignment void; assignor remains liable. Contact Rotterdam Legal Aid Office.
When may landlord refuse?
For commercial premises only for compelling reasons (7:230 DCC), more often for residential. Check with District Court of Rotterdam.
What if assignment without approval?
Landlord seeks termination. Consult tenancy lawyer or Rotterdam Legal Aid Office immediately.
Assignment vs. subletting?
Yes, subletting: assignor primarily liable; assignment: not.
Tips for Rotterdam residents
- Document everything in writing and have deed reviewed by lawyer at Rotterdam Legal Aid Office.
- Contact Municipality of Rotterdam for local rental advice on commercial premises.
- Approach District Court of Rotterdam on refusal; prepare file with finances.
- Consider guarantee for landlord in risky assignments.