If a rented premises (commercial rental) or a home is destroyed by fire or other causes, what happens? Is the landlord obliged to rebuild it? Is the tenant obliged to move back in?

Is it regulated by law?

This question is partly answered in the Tenancy Act. The Act is mandatory for residential properties, which means that it is not possible to agree on anything that would cause significant disadvantages for the tenant, only to grant better rights. When it comes to renting out commercial premises, there is complete freedom of contract; if nothing has been agreed, the Tenancy Act applies.

What does the Tenancy Act say?

It follows from Section 2-9 of the Tenancy Act that the tenant may demand that the agreement be fulfilled if this does not entail unreasonable costs or inconvenience for the landlord. The tenant cannot demand reconstruction if it is impossible to deliver, for example after a fire where the dwelling has been rendered unusable. The law does not regulate anything further on this matter, which means that there may be much discussion.

What do the standard agreements say?

The issue does not appear to be addressed in the agreement for housing, so the text of the law applies. In some cases, it may be advisable to include something about this in the agreement, especially if the housing is specially adapted to the tenant's needs or wishes.

For vanlig avtale om lokaler finner man for eksempel denne teksten: “Blir leieobjektet ødelagt ved brann eller annen hendelig begivenhet kan utleier erklære seg fri fra alle rettigheter og forpliktelser under leieavtalen”. Dette gir utleier mulighet til å bestemme.

What should be agreed upon?

If the premises are specially adapted to the tenant or the location makes it impossible to rent out the space at similar rent levels after reconstruction, the landlord must take precautions. The industry standard for "bare house" leases and the new building standard contain provisions as standard. In other standards, these can be found as an alternative appendix.

Why is this important?

Landlords and banks, etc. will often be concerned about this in connection with financing and future rental income before work on reconstruction begins. It should be agreed that the landlord can require the tenant to continue the lease when the building has been rebuilt.

The tenant should then demand the following:

• A deadline for deciding whether to rebuild.
• A deadline for how long it takes to move in.
• That the landlord provides an alternative during this period.
• Who will cover moving costs, etc.?

It is important to try to reach a balanced agreement that is predictable for both parties.

What can be done if nothing has been agreed?

For residential properties and commercial premises, Section 2-12 of the Tenancy Act stipulates that tenants have the right to terminate the lease if the landlord is unable to deliver. This means that you cannot terminate the lease after you have taken possession of the premises (gained access to the premises).