Irregular transfer and loss of commercial lease status
Written by, Séphora Amsellem on January 30, 2026
The Civil Court of Grenoble has issued a particularly instructive decision for landlords of tourist residences facing changes of operator.
In this case, an apartment located in Les Deux Alpes was let under a commercial lease in 2012. In 2021, the original tenant transferred its business to Vacancéole, which entailed a transfer of the lease. The landlord subsequently served notice refusing renewal, together with an offer of eviction compensation. Vacancéole challenged the validity of the notice and sought payment of a substantial eviction indemnity.
The dispute focused on the enforceability of the lease transfer against the landlord.
The Court recalls that, as the lease was entered into prior to the 2016 reform of French contract law, it remains governed by the former regime, in particular Article 1690 of the French Civil Code. In the absence of the landlord’s express acceptance, the transfer therefore had to be formally notified in accordance with that provision.
However, the Court finds that a simple registered letter with acknowledgment of receipt does not constitute valid notification. It further holds that the landlord’s silence cannot be construed as tacit acceptance, nor can the payment of a sum described as eviction compensation amount to recognition of tenant status.
Accordingly, the transfer of the lease is deemed unenforceable against the landlord. As Vacancéole cannot establish its status as a commercial tenant, it is deprived of the protection afforded by the French commercial lease regime. As a result, it is neither entitled to challenge the notice nor to claim any eviction compensation.
The Court therefore orders Vacancéole’s eviction, sets an occupancy indemnity, and orders it to pay various sums, including under Article 700 of the French Code of Civil Procedure.
This decision clearly illustrates a fundamental principle: entitlement to eviction compensation presupposes the existence of commercial tenant status. Where the transfer of the lease is not enforceable, that status falls away, along with all associated protections.
More broadly, the ruling highlights that in the chain structures typical of tourist residences—business transfers, lease assignments, changes of operator—strict compliance with enforceability formalities is critical. The burden of proof lies with the operator.
For landlords, reviewing the validity of lease transfers therefore constitutes a powerful strategic tool, capable in itself of excluding any right to eviction compensation.