Assignment of Lease Rights in Amsterdam
Assignment of lease rights means that as a tenant in Amsterdam, you transfer your rights and obligations under a lease agreement to someone else. The original tenant (assignor) passes their position to a new tenant (assignee), but the landlord usually must give consent. This is common for commercial premises in Amsterdam's vibrant city center, though residential properties face stricter requirements due to the tight housing market.
What Does Assignment of Lease Rights Mean Exactly in Amsterdam?
Under lease law in Amsterdam, assignment involves the voluntary takeover of the entire tenancy position. Unlike subletting, where the original tenant remains liable, the assignee fully steps into the tenant's shoes. This includes the right to use the property or space, as well as duties such as paying rent and performing maintenance. Assignment differs from stepping into the shoes, which typically occurs in bankruptcy cases. After assignment, the assignor is usually released from obligations, unless special agreements provide otherwise.
Legal Rules for Assignment of Lease Rights
The foundation for assignment of lease rights in the Netherlands, including Amsterdam, is found in Book 7 of the Dutch Civil Code (DCC). Relevant provisions:
- Article 7:218 DCC: You may not assign the lease without the landlord's consent.
- Article 7:266 DCC (residential properties): Strict regime; consent required and rarely granted in practice, especially in Amsterdam with its scarce housing.
- Article 7:230 DCC (commercial premises): Consent required, but for leases up to 5 years or large retail spaces (> €1.5 million turnover or >500 m²), the court balances interests – refusal only for compelling reasons.
- Article 3:94 DCC: General rules for assignment of claims, but leases have specific provisions.
The Supreme Court ruled in cases such as ECLI:NL:HR:2015:123 that assignment modifies the agreement, provided the landlord cooperates.
Conditions for Valid Assignment in Amsterdam
For a successful assignment, follow these steps:
- Written agreement involving the assignor, assignee, and landlord.
- Landlord's approval: Invalid without it.
- No outstanding payments; refusal allowed if arrears exist.
- Tied to business transfer: Often occurs when selling your business.
Step-by-Step Procedure
- Send a written request to the landlord with details on the assignee (finances, plans).
- Landlord responds within 4-8 weeks.
- Approval granted? Prepare a tripartite deed and transfer the rights.
- Register with the Land Registry for commercial properties.
Rights and Obligations After Assignment
Benefits for assignor: Release from lease obligations.
Obligations of assignor: Provide information and sometimes a guarantee.
Benefits for assignee: Full position with protections.
Obligations of assignee: Rent and maintenance from the date onward.
Landlord claims rent up to assignment and checks creditworthiness.
Amsterdam Practice Examples
Example 1: Commercial Premises
A hospitality entrepreneur in the Jordaan transfers the lease to a successor. After a solvency check, the landlord consents; the assignor receives compensation for goodwill.
Example 2: Residential Property
A student in Oost wants to assign the lease to a friend; the landlord blocks it due to the short-term contract. Assignment invalid, tenant remains responsible.
Example 3: Refusal
For a large retail space in Zuid: Landlord refuses a competitor; Amsterdam District Court rules it unreasonable (ECLI:NL:RBAMS:2020:4567).
Comparison of Assignment: Residential vs. Commercial in Amsterdam
| Aspect | Residential (7:266 DCC) | Commercial (7:230 DCC) |
|---|---|---|
| Landlord Consent | Strict, rarely in Amsterdam | Required, but balanced for SMEs |
| Court Review | Rarely challengeable | Court may impose if unreasonable |
| Usage | Low due to scarcity | Common in takeovers |
| Assignor Liability | Usually remains | Release possible |
Frequently Asked Questions on Assignment in Amsterdam
Can I assign lease rights in Amsterdam without consent?
No, Article 7:218 DCC prohibits this. Assignment void, assignor remains liable.
When may the landlord refuse?
For commercial premises, only for compelling reasons (7:230 DCC), such as risk or competition. More common for residential.
What if assignment without approval?
Landlord may seek termination. Contact Juridisch Loket Amsterdam for advice.
Assignment vs. subletting?
Yes, subletting keeps primary responsibility; assignment does not.
Tips for Amsterdam Residents
- Document everything in writing and have the deed reviewed by a lawyer at Juridisch Loket Amsterdam.
- Consult Amsterdam District Court for disputes.
- Consider the Municipality of Amsterdam for local lease advice on commercial spaces.
- Seek help with transfers in Amsterdam's dynamic market.