Chris Renouf
Consultant | Legal
Jersey
Consultant
Jersey
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Due to the COVID-19 pandemic the Jersey Courts are giving priority to criminal cases and those involving children and are unlikely to be dealing with matters relating to property, including proceedings for rent arrears, lease cancellation, orders for possession and eviction (Tenancy Disputes). Late on 9 April 2020 the Government of Jersey issued Guidance for commercial property (Guidance) to be read in conjunction with Practice Directions to be issued by the Courts to encourage Landlords and Tenants to negotiate temporary compromises in lease obligations in a reasonable manner if either party gets into financial difficulties arising from the COVID-19 pandemic.
In relation to Residential Tenancies this has also been supplemented by Regulations which were approved by the States on 9 April 2020 to temporarily amend the Residential Tenancy Law. (Jersey) 2011. No Regulations have been enacted in relation to Commercial Leases as there is no similar statute governing these. Guidance for Residential Tenancies has to be issued by the Minister for Children and Housing under the Regulations but none has been posted on the Gov.je website as at the time of issuing this briefing note.
This Briefing Note deals solely with Commercial Leases. We will issue a separate Briefing Note regarding Residential Tenancies once the Minister has issued Guidance for residential property.
The Guidance does not operate to release either party from its obligations and only operates during the period specified by Practice Directions. Whilst the Guidance is advisory, and compliance with it is voluntary, the Courts will be entitled to take into account the conduct of both Landlord and Tenant in any future Tenancy Disputes (which the Government hopes will be a matter of last resort) once the moratorium ends and may draw adverse inferences and make such orders as it sees fit in respect of any non-compliance with the Guidance. In contrast the Regulations have the force of Law.
1 Commercial Guidance
1.1 Types of leases to which the Commercial Guidance is applicable.
Any lease, tenancy, licence or other agreement which provides for the occupation on commercial terms of commercial property. This includes office / retail / hospitality & leisure / warehousing / registered lodging houses (but not individual lodging units) and any property part commercial and part residential).
1.2 Guiding Principles
Both parties must act in an open, transparent and reasonable manner under the Guidance.
1.3 Tenant Hardship.
1.4 Landlord Hardship
1.5 Effect of Temporary Voluntary Arrangement
1.6 Effect of not agreeing a Temporary Voluntary Agreement
2 TAKE AWAYS
Landlords and Tenants should abide by the 6 Cs during the Covid-19 crisis
Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.
This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.
Regulatory information can be found under Legal Notice
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