Spain: Royal Decree Law On Urgent Measures Regarding Housing Matters And Rents

Last Updated: 21 May 2019
Article by Ascensión Martín

On April 3, the Congress of Deputies validated a new Royal Decree-Law 7/2019, of March 1, on urgent measures regarding housing and rent, which had been published in the BOE on March 5 (hereinafter the "Decree-Law").

This validation fully integrates this Decree-Law in the Spanish legal system, thus revoking its provisional nature.

This law will be applicable to residential lease agreements that are signed after the date of this law's entry into force. Lease agreements entered into prior to this entry and subject to the Urban Leasing Law of 1994, unless agreed by the parties and not contrary to the legal provisions, will continue to be governed by the previous laws that applied to them.

The most significant developments of this law are the following:

  • Extension of the minimum lease term of the rental contract from 3 to 5 years, if the landlord is an individual, or to 7, if the landlord is a legal entity.
  • Tacit renewal is extended from 1 to 3 years, if neither party says anything after 5 years, if the landlord is an individual, or from 1 to 7 years, if the landlord is a legal entity.
  • To end the contract the tenant must give 2 months' notice and the landlord must give 4 months' notice.
  • Tourist housing and apartments are expressly excluded from the new LAU. Therefore, they are removed from the LAU`s scope of application and subject to regulation by the law governing rentals of tourist housing and apartments.
  • The agreement of the community of owners to limit or condition the exercise of business activity referring to tourist apartments will require the approval and a vote in favour by 3/5 of the total of the owners that, in turn, represent the 3/5 of participation quotas.
  • Whoever buys a rented house must respect the lease contract, subrogating the rights and obligations of the landlord, during the first 5 years of validity if the landlord is an individual and 7 if it is a legal entity. And this applies even if the contract was not registered at the Property Registry.
  • If the term of duration of the contract is longer than 5 or 7 years, depending on whether the landlord is a natural or legal entity, the purchaser will be subrogated for the entire duration unless it is a registered bona fide third party.
  • If the parties have stipulated that sale of the property extinguishes the lease, the purchaser should only carry on with the remaining time for the period of 5 or 7 years, according to whether the landlord is an individual or legal entity.
  • Subrogation rights will be possible in case of death of the tenant, but the parties may agree that, for contracts of more than 5 or 7 years, according to whether the landlord is an individual or legal entity, there is no right of subrogation after the end of that period.
  • It will not be possible to waive the subrogation in the event of the death of the tenant when whoever can exercise this right is a person in a situation of special vulnerability and is a minor, or disabled person or person over 65 years of age.
  • The possibility that the landlord, an individual, will recover the house for himself, by extinguishing the lease contract, only exists if it has been written into the contract itself.
  • In the absence of an express agreement there will be no update of the rent. In case of agreement, it will be updated annually by reference to the annual variation of the Competitiveness Guarantee Index. The Consumer Price Index (C.P.I.) will only operate as a limit and therefore the annual update of the rent cannot exceed the result of applying the CPI percentage variation.
  • When the landlord carries out improvement works, unless otherwise agreed, this will give him/her the right to raise the rent.
  • The parties may agree in writing that the general expenses for the adequate maintenance of the property, its services, taxes, charges and liabilities shall be borne by the tenant.
  • The costs of real estate management and formalization of the contract will be borne by the landlord when the latter is a legal entity.
  • There will be no place for the preferential acquisition rights when the rented dwelling is sold jointly with the other dwellings or premises that are part of the same property owned by the landlord or when they are sold jointly by different owners to the same buyer. In such cases, this rights may be established by housing legislation in favour of the Public Administration.
  • If there is only one dwelling in the property, the tenant will have the preferential acquisition rights.
  • As additional guarantees of compliance when it comes to housing leases, with a duration of up to 5 or 7 years, depending on whether the landlord is a natural or legal person, a cash guarantee or deposit of more than two monthly rents is not allowed by law and therefore cannot be agreed on.
  • Modification of Law 49/1960, of July 21, on Horizontal Property, establishing the obligatory nature of works to promote accessibility. The co-owners will contribute, according to their respective participation quotas, to the endowment of the reserve fund or community budget that will exist in the community to fund such works, as well as the rehabilitation, conservation and repair of the property, increasing the percentage of the reserve fund from 5% to 10%.
  • Modification of the procedure of housing eviction procedures. The existence of the procedure will be communicated by the Court to the social services. The obligation to indicate the day and time of the eviction is established. The rule of the amount is determined to establish the type of procedures.
  • Various economic and tax measures are also regulated in terms of housing and rent, such as empowering municipalities to establish by virtue of a tax ordinance, a bonus of up to 95% in the Real Estate Tax (IBI) fee for real estate properties of residential use intended for renting a house with limited income or so that, in the case of real estate intended for residential use and permanently empty, demand a surcharge of up to 50% of the net amount of said tax.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions