Commentary on Judgment No. 19808 of 2024: Nullity of the Lease Agreement and Occupation Compensation

The judgment No. 19808 of July 17, 2024, by the Court of Cassation provides important clarifications regarding the validity of lease agreements and the consequences of their non-registration. In particular, it analyzes the nullity of the lease agreement for violation of Article 1, paragraph 346, of Law No. 311 of 2004 and the owner's right to receive an occupation compensation.

The Violation of the Registration Obligation

According to Article 1, paragraph 346, of Law No. 311 of 2004, lease agreements must be registered to be considered valid. The Court of Cassation has ruled that the violation of this obligation leads to the nullity of the contract. This implies that the owner cannot invoke the validity of the contract itself but is entitled to compensation for the occupation of the property.

DEFINITION, CHARACTERISTICS, DISTINCTIONS) Residential lease - Violation of the registration obligation under Article 1, paragraph 346, of Law No. 311 of 2004 - Nullity of the contract - Right to occupation compensation - Existence - Legal pre-determination pursuant to Article 1, paragraph 59, Law No. 208 of 2015 - Conditions and limits - Case law. The nullity of the lease agreement for violation of the registration obligation, pursuant to Article 1, paragraph 346, of Law No. 311 of 2004, results in the right of the property owner to receive the occupation compensation, the quantification of which is subject to the legal pre-determination set forth in Article 1, paragraph 59, of Law No. 208 of 2015, only if, under the other prerequisites, the relationship arose after the entry into force of the rule. (In this case, the Supreme Court confirmed the merits ruling that, in declaring null under Article 1, paragraph 346, of Law No. 311 of 2004, a lease agreement from 2010 - which had been subsequently reported in 2012, pursuant to Article 3, paragraphs 8 and 9, of Legislative Decree No. 23 of 2011 - condemned the occupants of the property to pay a compensation based on the rent agreed between the parties, considering the regulation under Article 1, paragraph 59, of Law No. 208 of 2015 inapplicable, ratione temporis).

The Right to Occupation Compensation

The judgment clarifies that, despite the nullity of the contract, the owner is entitled to an occupation compensation. This compensation must be quantified according to the criteria established by law, in particular Article 1, paragraph 59, of Law No. 208 of 2015, which provides for the legal pre-determination of the compensation. However, it is essential to note that this rule applies only if the lease agreement was made after the entry into force of the same. In the specific case, the lease agreement was from 2010, and therefore could not benefit from this regulation.

Conclusions

Judgment No. 19808 of 2024 represents an important ruling by the Court of Cassation on leasing matters, emphasizing the necessity of registering contracts to ensure their validity. Furthermore, it establishes that the right to occupation compensation is not automatically excluded by the nullity of the contract, but must be assessed according to the current regulations. This decision provides a useful point of reflection for owners and tenants, reminding them of the importance of complying with legal provisions in leasing matters.

Bianucci Law Firm