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The bill proposal regarding the postponement of rent payments approved by the Chamber of Deputies of the Parliament of the Czech Republic

On April, 8 2020, the Chamber of Deputies of the Czech Republic approved the governmental proposal on the mitigation of impacts of the pandemics of coronavirus SARS CoV-2 on the tenants of the business premises.
 
In the approved proposal, the “deferment of the rent payment" is structured as limitation of the option of unilateral termination of the lease by the landlord in case the tenant is in delay with payment of the rent in the period commencing on March, 12 2020 and expiring on June, 30 2020.
 
The rent payment is deferred until December, 31 2020.
 
This advantage for tenants only concerns the delay with the payment of the rent, not the service charges, in case such delay occurred from March, 12 2020 to June, 30 2020 as a result of restrictions resulting from emergency measures against the epidemic, which have made it impossible or substantially difficult to carry on the business.
 
The wording of the proposal implies that the premises concerned are not only the premises where the business activity has been banned by the government, but also offices and other operations, in case the tenant is in default with payment due to emergency measures against the epidemic, provided that such measures have made it impossible or substantially difficult to carry on the business.
 
The tenant is to provide the landlord with documents proving that the default with the rent payment was caused due to the limitations connected with the emergency measures against the epidemic that disabled the business operations of the entrepreneur, no later than within 15 days following the first day of the delay with such payment.
 
If the rent is not paid in the protection period (i.e. December, 31 2020), the landlord is entitled to terminate the lease with the notice period of 5 days; this is applicable also in cases where the tenant informs the landlord on its incapability of paying the rent in the protection period.
 
In case the lease is terminated in the protection period, the tenant is obliged to pay the outstanding rent within the 30 days following the termination of the lease.
 
Please find the bill proposal approved by the Chamber of Deputies of the Czech Republic here.

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