OREANDA-NEWS. July 24, 2013. SORAINEN Estonia successfully represented Estectus, a wholly-owned company in the SEB Group independently managing their property portfolio, in a court dispute with a malicious tenant that had concluded a residential lease contract with the previous owner of two apartments.

The contract had extremely harmful conditions for the landlord and the tenant refused to leave the premises after the contract had transferred to Estectus as acquirer of the apartments. The dispute ended with a precedent decision of the District Court where the court limited the rights of tenancy in bad faith.

It was made clear that a lease contract concluded two months before the forced sale of an apartment for a period of 40 years and with a rent corresponding to less than half the market rent of similar apartments is contrary to good morals and public order and therefore void.

This is a landmark decision regarding malicious tenants, who have caused much polemic in the Estonian media. Finally the court made clear that a tenant is not allowed to abuse their lease rights with the object of causing damage to the landlord.

The client was advised by partner Carri Ginter, specialist counsel Urmas Volens, senior associate Veikko Puolakainen and associate Triin Valjaots.