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10

07
2012

Right of security of the lessor

On 10, 07 2012 | No Comments | In Uncategorized | By Kadri Lensment

Jurisdiction – ESTONIA

The lessor of an immovable has the right of security over the movables located on the leased immovable, provided that the movables are part of the furnishings or are used together with the leased room. The right of security secures the claims of the lessor arising from the lease agreement.

The Supreme Court stated in its recent judgment that the right of security of the lessor is established automatically upon conclusion of the lease agreement (i.e. no separate pledge agreement is needed). According to the Supreme Court, in case the object of the lease agreement are shop rooms, then the right of security of the lessor covers furniture situated in the shop as well as devices that enable the intended use of the shop rooms. In addition, the right of security of the lessor covers also the goods that have been brought on the leased premises for the intention of selling.