term lease agreements that require long-term notice, as well as “silent renewal”

On April 10, 2019, Nesbitt Larrain LLP

In most cases, recent changes to Spain’s rental laws have made things harder for landlords, requiring greater attention from those who manage rental properties. Understanding this issue is essential to understanding long-term leases. buying property in qatar

Most landlords mistakenly believe that the lease agreement automatically terminates once the five-year deadline (or seven years, for legal entities) has passed. Silent renewal operates as an automatic extension to long-term leases if nothing is done to stop it. The concept behind it is to help even more with tenant protection and security.

periods of peace and renewal

The following terms apply to all long-term rental contracts that are signed on or after March 6, 2019:

By including silent renewal, which increases the length of the tenancy, a long-term tenancy becomes 8 years long.

This silent renewal adds an extra three years to the lease if the landlord is a legal person (i.e. companies). To make the total duration of a long-term tenancy 10 years.

Let’s take the example of a private landlord’s contract, which was signed on March 10, 2019. If no action is taken by the landlord by 2024, the contract will be automatically extended until the 9th of March 2027 for another 3 years.

How do you avoid getting an additional term added to your contract?

A notice of termination should be drafted by a lawyer and served by recorded delivery to your tenant within a time limit. If the landlord is a physical person, you must give two months’ notice before vacating the premises. If the landlord is a legal person, you must give four months’ notice (i.e. a company).

The property is for sale. How will this change my life?

It has an impact on you. Previously, buyers purchasing a property in Spain had to respect the entirety of a pre-existing lease agreement’s duration, no matter how long it was. For some time, it will be difficult for buyers to purchase vacant possession. Naturally, the majority of purchasers will not be patient enough to tolerate this, so any home deal quickly falls through.

In this regard, it is highly recommended that property owners consult with a lawyer before signing any rental agreement in Spain. There are numerous forms of rental agreements, and some of them are contractual agreements that enforce a contract length of eight or ten years if you are unaware.

Though these annoying issues exist, there are always legal ways to avoid them. Talking to a lawyer ahead of time can help you avoid legal issues that could negatively impact the sale of your house.