Requirements for Valid Ground Rent Redemption
In a 2002 judgment, the Court of Appeal confirmed the nullity of a schedule of redemption of ground rent that had not complied with the contractual terms regulating the emphyteutical concession (Court of Appeal, 16 January 2002, App. Civ. 210/95) . The case involved a ground rent concession established in 1979, before the legislative amendments of 1981. The Court held that where an emphyteutical contract predates 15 August 1981, the redemption of ground rent must follow the procedure laid down in the contract itself and not the general mechanism under Article 1501 of the Civil Code. In particular, the Court emphasised that the contractual provisions concerning the timing and capitalization rate for redemption are binding . A redemption carried out in a manner inconsistent with those provisions does not meet the legal requirements and is therefore invalid. The Court also clarified that where a contractual clause partly conflicts with the law, only the conflicting portion is dis...