Set-off of the Lease Deposit

According to the “old” Civil Code (Act No. 40/1964 Coll.), set-off of the receivables of the lessor arising from the lease agreement against the lease deposit was very restricted. The lessor was entitled to settle only some receivables (rent and the payments for the costs associated with the flat’s use) against the lease deposit; other receivables arising from the lease contract could be settled only if the receivables of the lessor were awarded to the lessor by an enforceable decision of a court or acknowledged by the lessee in writing.

According to the “new” Civil Code (Act No. 89/2012 Coll.), the lessor is entitled to set off any of his receivables arising from the lease contract against the lease deposit including e.g. receivables arising from the damages made by the lessee. The lessor is entitled to set-off the receivables by the end of the lease, i.e. on the last day of the lease period.