SELLING LEASED PROPERTY IN THE NETHERLANDS ANTILLES
The lessee is 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 a foreclosure sale, the (material) obligations in any lease agreement with respect to that property will automatically transfer to the new owner.
A mortgage holder can usually initiate foreclosure at anytime there is a default on the mortgage payment, however regarding the foreclosure sale, i.e. the sale initiated by a mortgage holder, the above principle does not hold if 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 property from entering into a lease or tenancy agreement without prior permission from the mortgage holder.
Karel Frielink
Attorney (Lawyer) / Partner
