Comprehensive Guide to Lease Agreements in Spain

Posted on Aug 24, 2024 in Law & Jurisprudence

LEASE

Types of Leases

The DC regulates three classical forms of leasing:

  1. Lease of things
  2. Lease of works
  3. Lease of services

Arts. 1542 et seq.

According to the Civil Code (CC):

  • Lease of things: One party agrees to give another the enjoyment or use of a thing for a specified time and price. (Art. 1,543)
  • Lease of works or services: A party undertakes to perform any work or provide a service to the other for a true price. (Art. 1,544)

Parties to the Contract

  1. Lessor: Whoever undertakes to assign the use of the thing, executing the work, or providing the service.
  2. Tenant: Any person who acquires the use of the thing or the right to work or service and undertakes to pay.

RENTAL OF THINGS

Characteristics

  1. Consensual
  2. Bilateral
  3. Conmutativo
  4. Onerous

Regulations

  • Civil Code
  • Urban Leases Act of 24-11-1.994
  • Act leases. The law of 26/11/2003, which entered into force in May 2004, partially amended by Law 26/2005 of 30 November.

Leasing of Things in the Civil Code

Obligations of Landlord

  1. Give the tenant the subject matter of the contract.
  2. Do all necessary repairs to keep it in condition to serve for the use for which it has been allocated.
  3. Keep the lessee in the peaceful enjoyment of the lease at any time of the contract. (Art 1554)

Obligations of Lessee

  1. Pay the rent on agreed terms.
  2. Use of the thing leased as a diligent parent, for the use agreed and, failing agreement, which is inferred from the nature of the thing leased as is the custom of the land.
  3. Pay the expenses incurred in writing the contract. (ART.1555 CC)
  4. To inform the owner, in the shortest possible time, of any misuse or harmful novelty carried out or openly preparing the thing leased, and the need for repairs that fall to the landlord. (Art. 1559 cc)
  5. Must return the property upon completion of the lease, as received (art. 1561 CC). Consumables that are consumed in use are not covered by this contract.

Causes of Contract Extinction

  • Course of the term: If the lease was for a specified period.
  • Automatic renewal: If, after the contract, the tenant still enjoys the thing leased for 15 days (see art. 1566 CC), the contract is renewed.
  • Upon request, whether indefinitely.

RENTAL OF THINGS BEFORE THE LAW Urban Rentals

The current law is 24 November 1994. However, the LAU of 24/12/1964 continues to apply to AUs concluded before May 9, 1985.

ACT 1994: Included Leases

  1. Leases for use as accommodation: This lease refers to an urban farm size whose primary target is to satisfy the continuing need for housing. (See Art.7)
  2. Leases for uses other than housing: All others falling on a building:
    • Seasonal
    • Held to exert an industrial, commercial, craft, professional, recreational, cultural, or educational activity.

Leases of trade or business are subject to CC.

COMMON STANDARDS

  • Obligation to provide security and execution of the contract: Arts. 36.37 lau.
  • The lease for uses other than HOUSING: Rules are dispositive. Arts 29 to 35.

LEASE OF PROPERTY

MUCH OF THE RULES OF HOUSING AU are mandatory.

  1. Contract Duration: Arts.9 & 16 LAU. The minimum duration of a contract for a. of v. is five years. If shorter, the lessee has the right to extend the contract up to five years. After five years, it may be extended again by tacit agreement.
  2. Rent payment: Monthly and may be updated each year under the consumer price index (CPI). From the 6th year, as agreed, or failing that, according to IPC. (Art.18 LAU)
  3. The landlord is obliged to make the necessary repairs to the house. (Art.21)
  4. The lessee is obliged to bear the necessary repairs and improvement works. (Art.22)
  5. The tenant cannot perform works to modify the configuration of the housing or its accessories without the consent of the landlord. (Art.23)
  6. The tenant has the right of first refusal if the house is sold. (Art.25)
  7. The lessee has the right to transfer and lease part of the home if the landlord gives permission. (Art. 8)
  8. In case of death of the tenant, the family may be subrogated to Article 16.

Rights and Obligations of Parties

Articles 21 to 25 LAU

OTHER THAN FOR RENTAL HOUSING

  • Same rights and obligations 3 to 6. (Arts.30-31)
  • The lessee may assign or sublet without prior permission of the lessor; it may increase the rent. (Art.32)
  • If it carries on a business or professional in-house, and died:
    • The heir or legatee may be subrogated. (Art.33)
  • The lessee is entitled to compensation for customers if the contract is not renewed after 5 years (Rule 34).

RENTAL OF THINGS BEFORE THE LAW Leases

The law of 26/11/2003, entered into force on 27.5.2004.

Article 1. Concept

  1. Leases are considered contracts whereby one or more farms or parts of them are transferred temporarily for farming, livestock, and forestry in exchange for a price or rent.
  2. These contracts are governed by what is expressly agreed by the parties, provided that no additionally oppose this law, shall govern the Civil Code and, failing that, uses and customs that may apply.
  3. They will also be treated as agricultural leases, farming, or forestry, to which the provisions of this Act that are consistent with nature and always failing which the parties have expressly agreed.

Article 2. Operating Lease

It is understood that the lease is operating, whether incorporated before or at concluding the contract, where she receives the same in all of its elements, considered as an organic unity, provided that the parties do so expressly stated, accompanying the corresponding inventory.