Completion of the legal extension in the housing lease

15/12/2021

 
LEASES
 
 
Finalización de la prórroga legal en el arrendamiento de vivienda
 
What happens at the end of the legal extension in the housing lease when the parties have not terminated the contract.
DECEMBER 9, 2021
10 minute read

Index of contents

We are going to see the legal consequences of the termination of the legal extension in the housing lease when the tenant continues to occupy the property.

The first thing is to briefly explain each of the concepts and legal regulation that exists in this matter so that we can situate ourselves in front of the question that we pose.

Duration of the housing lease:

Contracts entered into between 1-1-1995 and 5-6-2013:

The duration of the housing lease will be that freely agreed upon by the parties.

If it is less than five years (example: the contract states that the duration is ONE YEAR), when the contract expires (after that year) and if the tenant wants to continue with the contract, it will be extended mandatory for the lessor for annual terms until the lease reaches a minimum duration of 5 years (art. 9 LAU).

With this rule, the tenant is allowed, even if the contract has stated a duration of less than 5 years, to remain in the home for up to 5 years.


It is a right in favor of the tenant to remain in the dwelling for up to 5 YEARS, regardless of whether a shorter duration has been stated.

After this minimum duration of 5 years, if the parties do not say anything about the resolution of the contract (with legal notice), the lease will be extended for another 3 YEARS at the will of the tenant.

Example:

If a lease is signed on 11/1/2012 for a duration of 1 year; If the tenant wants to continue in the home after that year, the Law protects him and he can be in the use of it for up to 5 years, that is, until 10/31/2017).

After this 5-year term, if the parties do not say anything (they do not communicate that the contract is terminated), the lease will be extended for up to a maximum of THREE YEARS at the will of the tenant.

 

Remember that this extension is no longer mandatory for the landlord if, before the end of the first 5 years, the tenant is informed of the termination of the contract and that the property is handed over to him. If the lessor does not terminate the contract at the end of the first 5 years, the contract is extended for 3 more years, so following the example we have given, it will end on 10/31/2020.

Article 10 LAU:

«If the expiration date of the contract arrives, after at least five years have elapsed, neither of the parties has notified the other, at least one month before that date, of their desire not to renew it, the The contract will be obligatorily extended for annual terms up to a maximum of three more years.

RESUME:

In housing lease contracts entered into between the period (1-1-95 and 5-6-2013), the tenant can stay in the home for at least 5 years (at their will) or 3 more years, provided that the landlord has not communicated its will to terminate the contract in accordance with the provisions of article 10 LAU.

From the end of the legal extension in the housing lease, the contract enters into tacit renewal (which we will explain its meaning later).

Lease contracts entered into between 6-6-2013 and 5-3-2019:

The duration of the lease will also be that freely agreed upon by the parties.

If it is less than 3 years, when the contract expires and if the tenant wants to continue with the lease, it will be obligatorily extended for the lessor for annual terms until the lease reaches a minimum duration of 3 years (art. 9 LAU).

With this rule, the tenant is allowed, even if the contract has stated a duration of less than 3 years, to remain in the home for up to 3 years.

It is a right in favor of the tenant to remain in the dwelling for up to 3 years, regardless of whether a shorter duration has been stated.

After this minimum duration of 3 years, if the parties do not say anything (they do not communicate with prior notice that the contract expires), the lease will be extended for one year at the will of the tenant.

Remember that this extension is no longer mandatory for the landlord if before the end of the 3 years he informs the tenant that the contract is ending and that he delivers the home. If he does not say anything and the tenant wants to continue, the contract is extended for another year.

Example:

A lease is signed on 02/01/2017 for a duration of 1 year; If the tenant wants to continue in the home after that year, the Law protects him and he can be in the use of it for up to 3 years, that is, until 01/31/2020).

After this minimum duration of 3 years, if the parties do not say anything (they do not communicate that the contract is terminated), the lease will be extended for another year at the will of the tenant.

Remember that this extension is no longer mandatory for the landlord if, before the end of the first 3 years, the tenant is notified of the termination of the contract and that they hand over the property. If the lessor does not terminate the contract at the end of the first 3 years, the contract is extended for 1 more year, so following the example we have given, it will end on 01/31/2021.

Article 10 LAU: «If the expiration date of the contract, or any of its extensions, has elapsed after at least three years of its duration, neither party has notified the other, at least thirty days in advance at that date, his will not to renew it, the contract will necessarily be extended for one more year».

Therefore, in housing leases, entered into between 06-06-2013 and 03-05-2019, the tenant can stay in the home for at least 3 years (at their will) and 1 more year as long as the lessor has not communicated his will to terminate.

As of the completion of the legal extension in the housing lease, the contract enters into tacit renewal.

Lease agreements entered into as of 03-06-2019:

With the latest reform of the Urban Leasing Law, housing lease contracts concluded after March 6, 2019, will have a duration of 5 years if the lessor is a natural person or 7 years if it is a legal person. .

After this duration of 5 years (individual lessor) or 7 years (legal person lessor), if the parties do not say anything (they do not communicate that the contract is terminated), the lease will be extended up to a maximum of 3 more years at tenant's will.

Remember that this extension is no longer mandatory for the landlord if before the end of the 5 or 7 years he informs the tenant that the contract is ending and that he delivers the home. If he does not say anything and the tenant wants to continue, the contract is extended for another 3 years.

What is the tacit redirection?

The tacit renewal is established in article 1,566 of the Civil Code:

"If at the end of the contract, the tenant remains enjoying fifteen days of the leased thing with the consent of the lessor, it is understood that there is a tacit renewal..."

The tacit renewal, therefore, is the situation in which the lease remains once the term of the legal extension of article 10 of the LAU has ended (three years of contracts prior to 6-6-2013 and ONE year in those between on 6-6-2013 and 5-3-2019); If the tenant, at the end of these legal extension periods, continues to use the home for 15 days without the landlord notifying him that the contract has ended and that he must vacate the property, the lease will continue in force.

The tacit renewal (according to the Jurisprudence) implies a new lease.

The duration of this new contract in tacit renewal will be the one provided in article 1,581 of the Civil Code:

It will be understood to be done for years when an annual rent has been set in the original contract.
For months when a monthly rent has been set.
And for days when it is daily.
Examples:

A) If an annual rent of 6,000 euros was set in the lease, to be paid monthly at a rate of 500 euros/month, after the legal extension of article 10 of the LAU (3 years or 1 year depending on the start date of the contract), and after 15 days in the use of the dwelling by the tenant with the consent of the lessor, the contract will continue for one more year when the annual rent is agreed, and so on. Each year a new contract is perfected.

B) In the lease, the rent was set monthly, at a rate of 400 euros every month; Once the legal extension of article 10 of the LAU has ended (3 years or 1 year depending on the start date of the contract), and after 15 days have elapsed in the use of the dwelling by the tenant with the consent of the landlord, the contract will continue for one more month when the monthly rent is agreed, and so on. Each month a new contract is perfected.

Judicial procedure to recover the property:

If the landlord informs the tenant of his desire to terminate the contract and therefore prevent the next tacit renewal and the tenant does not leave the property, the landlord may resort to the eviction procedure due to the expiration of the term, as provided in article 1569 of the Civil Code:

"The lessor may judicially evict the lessee... for having expired the conventional term or the one set for the duration of the leases in articles 1,577 and 1,581."

Summary:

At the end of the legal extension in the housing lease, the rental relationship will continue if the tenant remains in the lease for 15 days with the consent of the landlord. This rental situation implies a new contract between the parties, the duration of which will be determined by the provisions of article 1,581 of the Civil Code.

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