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Back|Government approves royal decree of automatic and indefinite renewal of rents
Government approves royal decree of automatic and indefinite renewal of rents
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El Mundo·1 hour ago·Politics·2 min read·🇪🇸Spain·

Government approves royal decree of automatic and indefinite renewal of rents

EL MUNDO accesses the text that modifies the Urban Leasing Law and establishes successive extensions of five or seven years.

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The Council of Ministers approves a royal decree for the automatic and successive renewal of habitual residence rentals, establishing extensions of five or seven years unless otherwise notified.

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Why It Matters

The Council of Ministers approved a royal decree for the automatic renewal of rents that modifies the Urban Leases Law.

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"The continuity of the contract becomes the rule and its termination, an express decision of the lessor." EL MUNDO has agreed to the royal decree of automatic renewal of rents, approved yesterday by the Council of Ministers, but which has not yet been published in the Official State Gazette (BOE), as has happened with the other one that was also approved yesterday, the one known as the Maricarmen decree.

The royal decree of automatic and successive renewal of rents, which has few signs of validation in Congress, on Friday, has already been registered in the Lower House, with the signature of the Minister of the Presidency, Félix Bolaños. It consists of a single article: "Single article. Modification of Law 29/1994, of November 24, on Urban Leases. Article 10 of Law 29/1994, of November 24, on Urban Leases is modified."

"If the expiration date of the habitual residence lease contract, or any of its extensions, including voluntary ones and those regulated by law, arrives after at least five years of its duration, or seven years if the lessor is a legal entity, neither of the parties has notified the other, at least six months in advance of that date in the case of the lessor and at least two months in advance in the case of the lessee, of their desire not to extend it, the contract is terminated. will be obligatorily extended for successive terms of five years, or seven years if the lessor is a legal entity," reads the document in the possession of this newspaper.

In addition, the landlord's notice period is increased from four to six months, "which allows the tenant to plan his change of residence sufficiently in advance", while that of the tenant "remains at two months."

The reason that the decree of indefinite renewal of rentals has not yet been published in the BOE (which will happen tomorrow) is that "the last published rule is the one that prevails," according to the Government. "The second decree establishes that the contracts are indefinite while today's decree states until December 28. That's why the order, too."

The second decree, known as rent "stability", rewrites article 10 of the Urban Leases Law. In this way, the landlord who decides not to extend, with six months' notice, "compensates the tenant with at least 12 monthly payments of rent" for a similar home according to the state reference index, "unless there is justified cause or the tenant can benefit from a legal extension." And never less than 1 monthly payment per year lived. It is paid upon delivery of the keys.

Of course, non-renewals already communicated continue to be valid and do not carry compensation, and contracts that expire in the next 6 months retain four months' notice. And if the landlord needs the home for himself or a second-degree relative, but does not occupy it in three months, he pays.

In any case, this royal decree does not have, on paper, the necessary support to be validated on Friday in Congress.

What to Watch

AI outlook — possibilities, not facts

  • Vote to validate the royal decree in Congress on Friday

    Likely · Within days

Open Questions

  • ?Will the decree obtain the necessary support for its validation in Congress?
  • ?How will the measure affect the real estate market in the long term?

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This article was originally published by El Mundo.

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The Council of Ministers approves a royal decree for the automatic and successive renewal of habitual residence rentals, establishing extensions of five or seven years unless otherwise notified.

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1 hour ago
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