Do tenancy agreements have a cooling off period?

Lease 3 years

For leases ending between April 1, 2020 and two months thereafter, the extension will generally be for 6 months and will apply if the lessee has requested it from the lessor. Such extension must comply with all the contractual conditions of the lease, including the rental price.

A distinction must be made between a large tenant and a non-large tenant. A large landlord is any individual or legal entity owning more than 10 urban properties (excluding garages and storage rooms) or a built-up area of more than 1,500m2.

In the event that the vulnerable tenant and the large holder owner have not reached a prior agreement, the large holder owner will have 7 days to communicate the decision, which can be one of these two:

Tenants who meet the conditions to be considered vulnerable may apply for financing, guaranteed by the State, to their financial institution, to be used entirely for the payment of the rent of up to 6 monthly payments. Such financing will be 900€ per month or 100% of the rent for lower amounts.

What is the minimum term of a rental contract?

How long can a lease contract be extended? The minimum duration is 5 years (7 years for legal entities), which can be extended for 3 more years.

How do leases conform to the new law?

According to the new regulations, rents are adjusted once a year with a formula composed of 50% for the evolution of salaries (the Ripte index) and 50% for the evolution of inflation measured by the Indec (IPC).

What does the new rent law 2020 say?

The new rental law establishes that it is valid to rent for less than three years for tourism, rest or similar purposes. If the term of the contract or consecutive contracts exceeds three months, it is presumed that it was not made for such purposes.

Read more  Can my Neighbour object to my loft conversion?

Example of leasing

The health crisis we are experiencing and the confinement of citizens established by Royal Decree 463/2020, of March 14, has a serious economic and social impact. Private law relationships are also affected by these circumstances and the most talked about is the impact that an inability to pay resulting from the (forced) cessation of professional activity dictated by the authorities may have on lease contracts. An unforeseeable and unavoidable event such as a pandemic and the confinement it entails leads to a breach by one of the parties, a breach, therefore, not imputable.    Unlike unforeseeable or foreseeable inevitable events there are many (unemployment, disease etc…) but now we are facing a rare one that affects many people: a pandemic.

The problem that arises is to determine who bears the risk of non-guilty breach in contracts with reciprocal obligations, i.e. when I breach not due to wilful intent, fault or negligence, but due to an act of God or force majeure (I stop working because I am forced to do so by the authorities who implement the state of alarm and I have no income).

What happens if the lease expires?

Generally, when the lease requires a renewal (a new lease) at the end of its term, and there is no such renewal at its expiration, the lease has terminated. However, if the landlord has accepted the rent and allowed the tenant to remain in the unit, a tenancy at will has been created.

How long can a rental agreement be made?

With the latest reform of the Urban Leases Law, residential leases entered into as of March 6, 2019, will have a term of 5 years if the lessor is an individual or 7 years if the lessor is a legal entity.

How do rents adjust in 2021?

How to calculate the increase in the contract

Enter the Central Bank website, as indicated in the 2021 rent law, go to the “statistics” tab and then “main variables”. … Finally, multiply that figure by the index of the date on which the amount of rent changes.

Read more  Who owns a property after exchange of contracts?

Lease Contract

On June 30, 2020, the new Rent Law was published in the Official Gazette, which modifies several essential aspects of the real estate lease contract. In this paper we will try to show what those changes are in order to clear any doubts that may arise from some of the recently enacted rules.

The new law, which came into force as from the day after its publication in the Official Gazette for lease agreements entered into as from July 1, 2020, 1 comprises, as Falcón says, four aspects. The first consists of a series of reforms to the Civil and Commercial Code (arts. 1 to 12); the second, a complementary regulation of leases (arts. 13 to 16); the third organizes a national plan of social regulation (arts. 17 to 20), and the fourth is aimed at promoting alternative dispute resolution and a modification of article 6 of the National Mandatory Mediation Law 26,589 (arts. 21 and 22).

a. Although the law regulates, as we have already said, contracts for the lease of real estate, Article 1 amends a general rule that defines the special domicile for all contracts. We refer to Article 75, which is worded as follows: “The parties to a contract may choose a domicile for the exercise of the rights and obligations arising therefrom. They may also set up an electronic domicile where all notices, communications and summonses addressed therein shall be deemed effective.”

How do 2021 rents adjust?

Under the current law, rents are adjusted once a year with a formula composed of 50% for the evolution of salaries (the Ripte index) and 50% for the evolution of inflation measured by the INDEC (IPC).

How are rents adjusted?

The law states that the adjustments must be made “using an index made up of equal parts of the monthly variations of the Consumer Price Index (CPI) and the Average Taxable Remuneration of Stable Workers (RIPTE)”.

Read more  Can I pay rent to my mother?

When does the new rent law 2020 come into force?

The modification of this law includes updates in the terms and values of rents, payment of expenses and the creation of the national rental program. As from July 2020, the new rent law came into effect.

Importance of the lease contract

In this context and at the gates of a new economic recession, with an estimated unemployment rate of 19% and a more than foreseeable contraction in consumption, the Law must emerge as a pacifying tool for the multiplicity of conflicts that, today, are already emerging in companies, as well as in the usual relations of businessmen with their peers and with the market in general.

It is not possible, therefore, to seek to alter the content of an obligation without the consent of the counterparty, with very specific exceptions that we will see below. However, it is possible to excuse the performance of the obligation and exempt from liability for it, exclusively when the law offers such a faculty, that is to say in the cases of supervening impossibility of the performance due to causes not attributable to the obligor. However, impossibility of performance is not equivalent to supervening excessive onerousness of performance, and this must be differentiated in a first analysis of the question, in order not to lead to erroneous results.