The Sale of the Property May Constitute an Exercise of the Landlord’s Right of Withdrawal

The Court of Appeal of Aix en provence confirmed that the sale of a property may, in certain circumstances, amount to an exercise of the landlord’s “right of withdrawal” (“droit de repentir”) under French commercial lease law.

Under Article L.145-58 of the French Commercial Code, a landlord who has served notice refusing renewal of a commercial lease may subsequently reverse its position and renew the lease, notably in order to avoid paying a potentially significant eviction indemnity.

However, this right disappears once the tenant has irreversibly left the premises or definitively relocated its business.

In this case, several owners of student residence units had served notices refusing renewal before subsequently selling their properties.

The operator, Nexity Studea, argued that these sales made any exercise of the right of withdrawal impossible.

The French Supreme Court rejected this argument and upheld the Court of Appeal’s reasoning that, through the deeds of sale themselves, the landlords had effectively waived their previous refusal notices and exercised their right of withdrawal.

The Court also noted that:

• the tenant was still occupying the premises;
• the business activity was continuing;
• and no irreversible relocation or transfer of the operation had been established.

As a result, the commercial lease continued despite the sale of the properties.

This decision is particularly noteworthy in the context of French leaseback and tourist residence disputes, where issues relating to lease renewal refusals, eviction indemnities and withdrawal rights often involve substantial financial stakes.

(Court of Appeal of Aix en Provence – Third Civil Chamber – 5 February 2026, n°2202092)