Reorganization of a Land Tenant: Is the Lease Agreement Terminated?

The reorganization of a legal entity that is a lessee does not in itself constitute grounds for terminating or amending a land lease agreement, unless otherwise expressly provided for in the terms of the agreement. In such a case, the principle of succession applies—all rights and obligations under the agreement are transferred to the newly formed legal entity.

At the same time, to avoid potential disputes in the future, the relevant changes should be properly documented: the landlord should be notified of the reorganisation, legal succession should be confirmed by the appropriate documents, an addendum to the lease agreement reflecting the substitution of the contracting party should be executed, and the relevant amendments should be entered into the State Register of Rights to Immovable Property.