GIPE Newsletter 16th february 2024

HOUSING LEASING:

News in rentals during 2024

In 2024, important changes have been implemented in the rental sector in Spain. Below, we summarize the most relevant news:

Extension of measures:

• Evictions and evictions that affect vulnerable people will remain suspended until December 31, 2024.
• In addition, the deadline is extended until January 31, 2025 to request compensation from the landlord or owner affected by this suspension.

This suspension applies mainly to so-called ‘verbal’ procedures (such as evictions due to non-payment, expiration of the term or precarious) and to those in which the eviction comes from a criminal process. It does not affect procedures processed through ordinary channels, even if the affected people are vulnerable.

Income update:

• If you are a big holder, you can only increase it by a maximum of 3%.
• If you are not a big holder, you can agree on the increase you want or, in case of lack of agreement, increase it by the same limit.

This measure does not affect business premises, but only housing rentals.

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How to prove that you are not a big holder?

In 2024, the new housing law establishes specific requirements to determine if someone is a big holder. Here is the summary:

Definition of big holder:

A big holder is considered to be the natural or legal person who owns:

• More than ten urban properties for residential use (excluding rural properties, premises, warehouses, garages or offices).
• A constructed area of more than 1,500 m2 for residential use, which includes structural elements such as partitions, load-bearing walls, porches, warehouses or attics.
• In areas with a stressed residential market, some autonomous communities may consider the owner of five or more urban properties for residential use in that area to be a big holder. Check if your autonomous community has declared stressed areas to correctly present the claim.

Proof of not being a big holder:

Previously, the Property Registry Index Service was used. However, now there is a specific procedure:

• Request a certification from the Registry that lists the properties or usufruct rights in your name.
• You will need a valid digital certificate (or electronic DNI).
• Visit https://sede.registradores.org and select “Location certification of Law 12/2023 for the right to housing.”
• Indicate as interest “Contribute it to a future judicial procedure” and pay the price (15.03 euros).
• Once the procedure is completed, you will receive an email with a link to download the certification in PDF format. The certification provides the unique registry code of the properties over which you have rights and has the value of a public document.

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The resignation is valid

In a rental contract, when the owner of a rented property wishes to sell it, the tenant has a right of first refusal. However, it is possible to waive this right. Recently, a case was filed in which a tenant claimed that the waiver clause was void as it violated consumer protection regulations. The court rejected this nullity, arguing that a clause that reflects what the law allows cannot be considered abusive. Therefore, it is not abusive for the lessee to renounce the right of preferential acquisition.

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REAL ESTATE INTERMEDIATION:

In case of withdrawal

In the field of real estate brokerage contracts, it is important to understand the implications of the right of withdrawal. Below, we explain the key aspects:

Nature of contracts:

Real estate brokerage contracts are temporary and very personal.

They have a specific duration (generally six months, with the possibility of extension).

They are based on the trust placed in the intermediary.

Right of withdrawal:

The client has the right to withdraw from the contract at any time if he loses confidence in the intermediary.

However, withdrawal does not exempt the client from certain financial obligations.

Economic consequences:

The client must pay the expenses incurred during the contract.

If, after the withdrawal, the property is sold taking advantage of the intermediary’s management (for example, through a contact captured by him), the corresponding fees must be claimed.

In summary, the right of withdrawal allows the client to cancel the contract without justification, but does not exempt from financial responsibilities. It is essential to carry out an adequate settlement of expenses and closely monitor cases in which the property is sold after withdrawal.