International Law

SELLING LEASED PROPERTY IN THE NETHERLANDS ANTILLES

By Karel.Frielink

The lessee will be protected (in principle)

As a general principle, the rights of a lessee must be protected in the event leased property is sold.

Therefore, according to Dutch Caribbean law, in the event of the sale of a leased property, either a regular sale or through a foreclosure sale, the (material) obligations in the lease agreement with respect to that property will automatically transfer to the new owner.

The mortgage holder can usually initiate foreclosure anytime after a default on the mortgage. With respect to a foreclosure sale, i.e. a sale initiated by a mortgage holder, an exception to the above principle is made in the event the mortgage holder can invoke a so-called ?lease clause?. A lease clause is a provision in the mortgage deed that prohibits the owner of the real property from entering into a lease (a.k.a. rental) agreement without permission from the mortgage holder.

Karel Frielink
Attorney (Lawyer) / Partner

Full post as published by Karel's Legal Blog on February 22, 2008 (boomark / email).