Restitution Checklist
Restitution requires two steps: physical vacation and physical delivery of the keys to the landlord (or their mandatary) at their address. Until both steps are completed, an occupation indemnity is owed — even if the tenant is not using the premises (Cass. 3e civ., 21 September 2022; 16 March 2023).
Entry and exit condition reports are compulsory in commercial leases (Art. L. 145-40-1 C. com.), established jointly or by commissaire de justice. The entry report is the primary benchmark. Without one, Art. 1731 C. civ. presumes good repair at entry — shifting the burden of proof to the landlord.
The last assignee is liable for all degradations, including those of predecessors (Cass. 3e civ., 9 July 2003). Exceptions: deterioration from normal use over time (vétusté), force majeure, absence of fault, and pre-existing degradations at entry.
Post-June 2024: the landlord must now prove an actual loss to obtain damages for degradations (Cass. 3e civ., 27 June 2024). A landlord who has re-let without bearing repair costs or accepting worse terms will not be awarded compensation for the state of restitution.
The security deposit must be returned when the tenant hands back the keys and has performed their obligations. Retention is only justified where the landlord has an established claim. The obligation stays with whoever received the deposit; a building sale does not automatically transfer it to the buyer.

Physical Restitution: Vacating and Handing Back the Keys

Restitution of the premises is an obligation of result. It requires two things: the tenant must physically vacate (removing themselves and all occupants and their property), and they must actually deliver the keys to the landlord. The key handover is not a formality — it is the operative act that marks the completion of restitution.

A tenant who has vacated physically but has not returned the keys is still considered to be in occupation, and owes an occupation indemnity until actual handover occurs (Cass. 3e civ., 21 September 2022, n° 21-17.431; Cass. 3e civ., 16 March 2023, n° 21-25.002). This applies even if the tenant is not using the premises and even if the landlord has not indicated that they wish to take possession.

What Does NOT Constitute Valid Key Handover
  • Sending the keys to a commissaire de justice acting under the tenant’s mandate alone (Cass. 3e civ., 13 June 2001);
  • Leaving keys at the commissaire de justice’s office for collection without attempting personal delivery (Cass. 3e civ., 17 November 2016);
  • Dropping keys in a letterbox without the landlord’s agreement;
  • Demanding that the landlord collect the keys from the premises.

Keys must be delivered at the landlord’s address or registered office (Cass. 3e civ., 5 November 2003). The tenant bears the burden of proving that keys were returned. The tenant is exonerated only where they can prove that the landlord refused to accept them (Cass. 3e civ., 7 February 2019; Cass. 3e civ., 3 December 2020).

The obligation to return in good condition runs with the lease and binds the last assignee. The current tenant is liable for degradations caused by their predecessors (Cass. 3e civ., 9 July 2003). This is softened where the landlord signed a new lease with the last assignee with knowledge of the existing state of the premises — in that case, the landlord is taken to have waived the right to hold the current tenant responsible for predecessors’ degradations (Cass. 3e civ., 6 March 2012).

The Condition of the Premises on Restitution

Without a Condition Report at Entry

Article 1731 of the Civil Code creates a double presumption where no condition report was drawn up at entry: the tenant is presumed to have received the premises in good repair, and is therefore presumed to be returning them in that state. In practice the burden falls on the landlord to prove degradation during the tenancy. This is rebuttable, but undated photographs are insufficient (CA Versailles, 12 September 2019). Since the Pinel Act of 2014, both entry and exit condition reports are compulsory under Art. L. 145-40-1 C. com.

With a Condition Report at Entry

Where an entry report exists, Article 1730 applies: the tenant must return the premises in the same state as they received them, except for deterioration due to age or force majeure. The report is not irrebuttable but is the primary benchmark. A mention of “nothing to report” means no abnormality was found, so a degradation noted at exit establishes a departure from the entry state. The report must be established jointly at entry; a unilateral entry report prepared without the tenant’s participation is not binding on the tenant (Cass. 3e civ., 29 April 2002).

Exceptions: Age and Force Majeure

The tenant is not responsible for deterioration resulting from normal use over time (vétusté) or from force majeure. These are statutory exceptions under Article 1730 that cannot be contracted away unless the lease expressly transfers responsibility to the tenant — and any such transfer must be explicit (Cass. 3e civ., 1 February 1989). Deterioration existing before the tenant took the premises does not fall on the tenant (Cass. 3e civ., 30 June 2010). The tenant can also be exonerated by showing that the deteriorations occurred without any fault on their part (Art. 1732 C. civ.).

Financial Consequences at Restitution

Tenant Improvements

Under Article 555 of the Civil Code, the landlord can choose to retain improvements made by the tenant (paying the higher of the added value or the cost of works) or to require demolition at the tenant’s expense. The parties usually vary this by lease clause, providing for free accession by the landlord, demolition, or the landlord’s option between the two.

Damages for Degradations: The June 2024 Change

The landlord’s right to damages for degradations has been clarified by three rulings of 27 June 2024 (Cass. 3e civ., 27 June 2024, n°² 22-10.298, 22-21.272 and 22-24.502). The court has returned to the orthodox position: the landlord must establish the existence of an actual prejudice. The 2021 position — that compensation was not contingent on carrying out repairs, incurring costs, or proving a loss of rental value — has been abandoned. The landlord must now demonstrate a real loss: inability to re-let due to poor condition, or a demonstrably lower reletting price. A landlord who has already let the premises to a new tenant without having to carry out repairs or accept worse terms will not be awarded damages for restitution defects.

Occupation Indemnity After Lease End

From the moment the lease ends and keys have not been handed back, an occupation indemnity is owed at market value — even if the tenant is not using the premises. The indemnity runs until actual key handover. It is also owed where the tenant delays completing contractual exit works; the occupation period covers the duration needed to complete those works (Cass. 3e civ., 19 May 2010).

The Security Deposit

The security deposit must be returned to the tenant when they hand back the keys and have performed their obligations. Retention is only justified where the landlord has an established claim (unpaid rent, charges, or the cost of making good degradations the tenant is responsible for). The deposit is a personal debt of whoever received it; a sale of the building does not automatically transfer the obligation to the purchaser unless expressly agreed in the sale.

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Warning — Post-2024: Prove Your Loss or Lose Your Claim

The June 2024 Court of Cassation rulings mark a significant shift. A landlord who allowed a new tenant to completely refurbish the premises after the previous tenant’s exit, without having to contribute to those works and without accepting worse financial terms, cannot claim damages from the outgoing tenant for the state of restitution. Before proceeding with exit works discussions, landlords should document the reletting market value both before and after any remedial works and preserve evidence of any costs they have had to absorb or concessions they have had to make.

Practical Checklist: Tenants and Landlords at Restitution
Tenants — deliver the keys in person, at the landlord’s address: arrange delivery by commissaire de justice constat if the landlord is unavailable or disputes receipt. Document the handover date precisely — it is the date from which the occupation indemnity stops running.
If the landlord refuses the keys: document the refusal in writing (commissaire de justice constat of the refused handover) and keep the formal offer of return on record. The tenant is exonerated where the landlord’s refusal is proven.
At assignment: obtain a condition report: the last assignee inherits full responsibility for the premises. At the time of taking an assignment, commission a joint condition report and identify pre-existing degradations so that liability for them cannot later be attributed to you.
Landlords — document the actual loss post-2024: photograph the premises at exit and compare with the entry report. If repair works are required before re-letting, keep invoices. Preserve evidence of any concession made to the incoming tenant (lower rent, longer rent-free period) attributable to the state left by the outgoing tenant.
Security deposit — act within the agreed timeframe: once keys are returned and obligations are performed, return the deposit promptly (or within any contractually specified period). If retention is intended, issue a detailed written statement of the claims being set off, with supporting invoices, to avoid liability for abusive retention.
Dealing with a Restitution Dispute?

Whether you are a landlord assessing your compensation claim after an unsatisfactory exit, or a tenant facing demands for repairs or deposit retention, we advise on the restitution obligations, the evidential requirements, and the current standard for damages claims following the June 2024 rulings.

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Legal Notice. This article is for general information and educational purposes only. It does not constitute legal advice. Laws and regulations may have changed since publication. Always seek qualified French legal advice on lease restitution matters.