Reinier Russell

managing partner

Reinier advises national and international companies

reinier.russell@russell.nl
+31 20 301 55 55

No lease agreement - but still security of tenure!?

Publication date 26 oktober 2017

Lessees of residential and retail property may enjoy security of tenure, even if parties that have not entered into a lease agreement. Careful wording of agreements is crucial for excluding or applying security of tenure.

huurbescherming

Lease agreement or not

Lessees enjoy security of tenure either on the basis of tenancy law or on the basis of a lease agreement. Sometimes companies or private individuals enter into agreements that entitle them to also use someone else’s property but provide, or appear to provide, more options for termination than lease agreements. Think, for instance, of loan agreements, contracts for use, or operating agreements. Also, mixed agreements may be entered into that refer to both, a lease and another type of agreement. The issue, then, is whether security of tenure is applicable or the termination arrangements of the other agreement.

Loan agreement or lease agreement

The name of the agreement is not decisive as to whether or not security of tenure will be applicable, as was confirmed by a recent decision of the North Holland District Court. The famous Dutch artist Rob Scholte had entered into a loan agreement with the municipality of Den Helder in 2008. According to the agreement, Scholte was given use of the former post office of Den Helder. In exchange Scholte had to organise at least three exhibitions per year in Den Helder, not necessarily in the building.

The municipality of Den Helder thought to have solved two issues simultaneously: The property remained in use till it would be taken down to make way for a new town hall plus the town had a new tourist attraction. Scholte turned the post office into a museum, the Rob Scholte Museum, including works of other artists and, together with his family, lived in the building.

Eventually, the construction plans for the town hall were not realized. The municipality decided to sell the property and terminated the loan agreement with Scholte. The judge in preliminary relief proceedings decided however that it was probably a lease as Schulte had to organise exhibitions in exchange for using the rented property. Scholte is entitled to security of tenure.

Lease agreement and agreement for services

A catering company invoked security of tenure (continuation of the restaurant) when the State terminated the catering. The catering company had entered into an agreement with the State to provide the catering for private meetings at Groeneveld Castle in Baarn in combination with the right to make use of the premises for running a public restaurant.

The Dutch Supreme Court decided that the agreement was a mixed agreement that fulfilled the conditions of both a lease agreement and an agreement for services. In this case the rules for termination applying to both kinds of agreements clashed so that it had to be decided which provision was to prevail in this specific case. Providing catering services was central and prevailed, and so the rules for termination of the agreement for services had to be applied. As opposed to Scholte, the caterer could not invoke security of tenure.

Both examples show that careful wording of (lease) agreements is crucial for excluding or applying security of tenure.

More information

Would you like to learn more about the right to security of tenure or other kinds of mixed (lease) agreements? Or do you have other questions about lease and real estate? Please contact us:

    We process the personal data above with your permission. You can withdraw your permission at any time. For more information please see our Privacy Statement.

    Related publications

    1 January 2026: Wwft prohibits cash payments of 3,000 euros or more

    As of 1 January 2026, the Money Laundering and Terrorist Financing (Prevention) Act (Wwft) will change. Cash payments of EUR 3,000 or more will then be prohibited. What does this mean for the retail sector and the art trade?

    Read more

    Concurrence of lease agreement and franchise agreement

    A franchise agreement is often linked to an agreement for the lease of business premises. What happens if the franchisor and franchisee have a conflict? Does the lease agreement remain in force if there are problems with the franchise?

    Read more

    5 legal tips for managers of nonprofit organizations

    Managing a nonprofit organization requires not only idealism and dedication, but also a sensible approach to legal opportunities and risks. This ensures that the charity is future-proof. What are the important issues that need to be properly addressed?

    Read more

    Prevent the AI Act from taking you by surprise: how to limit the risks

    Almost all companies now use some form of AI. This means that they may be subject to the prohibitions and regulations set out in the European AI Act. How can you ensure that you comply with these rules?

    Read more

    11 November 2025: Wtta (Labour Supply Act) passed

    The new Labour Supply Act (Wtta) imposes stricter requirements on temporary employment agencies, payroll companies and secondment agencies. But the Wtta also has major consequences for companies that use their services. What does this mean for their personnel policy and administration?

    Read more

    Importing art from outside EU will become more difficult

    Since 28 June 2025, a new EU regulation requires anyone wishing to import cultural goods into the EU to have an import licence or submit an importer’s declaration. When is which type of document required? How does it affect art dealers, galleries, auction houses and collectors, both inside and outside the EU?

    Read more