Lease relations are regulated in Chapter Three of the Civil Code of Georgia, specifically in Articles 531-575.
Although leasing, like rent, involves the temporary use of property for a specified fee (rent), there are still essential differences between them.
Lease relations are used for commercial purposes, i.e., for generating income (e.g., leasing commercial space for an office or a food establishment).
Leasing may also involve land plots, equipment, vehicles, and other movable and/or immovable property.
In contrast, immovable property leased for personal use is not intended for income generation (e.g., renting an apartment for residential purposes).
However, both cases are subject to compensation.
Additionally, the parties themselves determine the amount of the lease payment.
The parties to a lease agreement are the lessor—the owner of the property—and the lessee, who rents the property from the lessor.
Furthermore, the Civil Code introduces the concept of "sublease," which means the lessee rents the leased property to a third party—subleasing.
This, of course, is only possible with the lessor's consent. However, there are cases when the lessor does not have the right to refuse subleasing.
Such a case is when the lessee has a valid/honorable reason. An honorable reason is considered to be one recognized as such by the legal order and social norms.
However, it should be noted that the lessor's interests are not left completely unprotected. The lessor may refuse,
if the sublessee is an undesirable person for them, and/or if there is a reasonable suspicion that the sublessee will substantially worsen the condition of the property.
Also, unlike a lease, a lease agreement is not a mandatory registration document.
We present a sample lease agreement, which outlines the main rights and obligations that are commonly encountered in practice. Of course, the articles and/or clauses of this agreement may be changed by the parties' agreement.
For the preparation of a lease agreement, you can contact us by email or by mobile phone.
