GIPE Newsletter September, 19th 2024

HOUSING LEASES:

PENALTY FOR NOT RETURNING THE KEYS

It is possible to implement a penalty clause to penalize tenants who do not return the keys at the end of the lease. This penalty is applied for each day that the tenant retains the keys after the agreed date. Although these clauses are valid, it is important to draft them carefully, clearly specifying the tenant’s obligation to return the keys and the amount of the daily penalty. It is recommended to set a sufficiently high amount, such as double or triple the daily rent, to be dissuasive and effective, and to set a specific date.

LOCAL LEASES:

RESIGNATION OF THE COMPENSATION

At the end of the lease of a commercial premises, the tenant may be entitled to compensation for clientele if certain requirements are met: having exercised commercial activity for the previous five years and expressing, four months before the end of the contract, his/her desire to renew it for at least five years and at a market rent. To avoid paying this compensation, it is recommended to include a clause in the contract in which the tenant gives up this right, since such resignation is valid.

LEASES:

WHAT WILL BE THE POINT OF MAKING IT PUBLIC?

The latest legal reforms have prolonged eviction processes, aggravated by the phenomenon of “inquiocupación“, where tenants pay only the first month’s rent and then stop paying. Faced with this situation, some owners choose to raise the lease contract to a public deed, since it allows them to directly demand rents or other payment obligations. However, this measure does not facilitate the eviction of the tenant, which will continue to require a judicial procedure.

REAL ESTATE PURCHASE AND SALE:

I WANT TO BUY THIS PROPERTY, BUT I CAN’T NOW…

There are several options to secure the purchase of a property when it is not yet possible to complete the operation:

• Penitential deposit: If you are not completely sure, you can sign a deposit contract where you pay between 1% and 3% of the value of the property. This contract allows the buyer to withdraw from the purchase without being forced to comply, although the seller keeps the money if the buyer withdraws. If the seller withdraws, he returns double the deposit.
  
• Confirmatory or penalty deposit: If the purchase is to be secured, these deposits are deducted from the final price, but they do not allow withdrawal. In the event of non-compliance, the sale and compensation can be demanded, which is already set in the case of penalty deposits.
• Promise of sale: Without delivery of money, it is a commitment to transfer the property. It allows the sale or compensation to be demanded if one of the parties fails to comply. It is used when the sale cannot be carried out immediately, such as in cases of inheritance, incomplete constructions, charges in the registry, or lack of financing. In Catalonia, it is possible to withdraw without penalty if financing is not obtained and this is stipulated in the contract.

REAL ESTATE INTERMEDIATION:

THERE WAS A MISTAKE IN THE ADVERT!

The consequences of publishing incorrect information in an advert for the sale or rental of a property.

The real estate agent is responsible both to the owner and to potential buyers or tenants, and the law requires that the information provided be accurate. If a mistake is made, the liability of the real estate agent will depend on how they act before and after detecting it. It is key to have previously verified the property and rectify any errors immediately. In addition, it is recommended to have professional liability insurance to cover possible problems arising from errors in the information.

GIPE: Together we will be stronger