GIPE Newsletter 18th April 2024

LEASES:

CONTINUE CHARGING…

According to the information provided, if you notified your tenant of the termination of the contract and, despite this, the tenant continues to pay the rents, it is not considered an automatic renewal of the rental. Although the law does not expressly state this, courts interpret your notice of termination of the contract as a clear manifestation of your intention not to renew, resulting in the termination of the contract. The fact that you continue to collect rent as long as the tenant does not vacate the property does not affect this conclusion. It is important to consult with a legal professional for specific advice regarding your particular situation.

RENTAL BENCHMARK

The rental price reference index is a tool implemented within the framework of the measures promoted by the Housing Law. Although it is currently only applied in Catalonia, it is important to understand what it consists of and how it affects new rental contracts.

Here are the key details:

Index Operation:

• By entering the required data of a home (such as address, height and state of repair) on the ministry’s website, the system provides a price range with a minimum and maximum value.
• This allows owners and tenants to negotiate the price within that range, taking into account the specific characteristics of the property.

“Big Holder” Landlords:

• If the landlord is a “large holder”, he must apply as the rental price for the new contracts the lowest value between the reference price index and the last rent that was in force in the last five years in the same home (adjusted to the CPI).
• This means that if the index is lower than the previous income, the index should be used as a reference.

Other Landlords:

• The rest of the lessors can apply the price they have been using until now, increased by the CPI, even if it is higher than the value marked by the index.
• Furthermore, they must only apply the index if there was no previous contract in the last five years for that home.

It is essential to consult specific legislation and seek legal advice to fully understand how the index applies to your particular situation.

REAL ESTATE PROPERTY:

THE PIANO BOTHERS US!

In a recent case, a homeowner filed a claim because his neighbor’s son was playing the piano, creating noise that caused him discomfort while he was teleworking and studying. To support his arguments, he provided an expert report showing that the noise level produced by the neighbor exceeded legally permitted limits.

The good news is that the claim was accepted. This means that the homeowner will be entitled to an appropriate solution or compensation to address the noise problem. It is important that the parties involved follow legal procedures and seek a fair resolution.

Remember that, in similar situations, having solid evidence, such as expert reports, can be crucial to support your arguments and achieve a favorable resolution.

ARE EVICTION COMPANIES LEGAL?

The right to private property is protected by law, and if it is violated, as in the case of usurpation of a home, the owner has the right to recover it. There are several ways to address this situation:

Civil Trial:

• Through the “precarious eviction trial,” the owner can seek recovery of possession.
• However, this process can be long, and in practice, the average time to achieve effective recovery ranges between 14 and 18 months or even longer.

Criminal Trial:

• The owner can file a complaint for “trespassing” or “usurpation of real estate.”
• Both procedures can also take time.

Extrajudicial means:

• The owner can use other legal formulas to recover the property without judicial intervention.
• This is where eviction companies come into play.
• Legality and Security:

When hiring eviction services, it is crucial that both the company and its employees have the professional category of private security.

Although this activity is legal, it is important that the execution does not involve violence or intimidation, as that would be illegal.

• Action in four phases:

Step 1: Verification. Firstly, the company identifies that this is an effective case of illegal squatting.

Step 2: Negotiation. Afterwards the company will begin a period of negotiation with the squatters.

Step 3: Access control. If the above does not work, the company establishes access control to prevent entry to anyone not authorized by the owner.

Step 4: Recovery. After verifying that there are no squatters left in the property, the lock is changed and the new keys are delivered to the owner, who recovers effective possession.

COMMUNITY OF OWNERS:

BOTH BREACH THE DEPOSIT

The owner of a home signed a penitential earnest money contract with a buyer, but the seller did not appear on the day of the deed. In this case several aspects have been taken into account:

Tacit Withdrawal of the Seller:

It has been considered that the seller tacitly abandoned the sale by not showing interest in signing the deed, possibly reconsidering his initial decision.

Buyer Default:

However, the buyer also failed to comply: he had to notify the day and time to sign the deed at the address specified in the contract.

Instead of following the proper procedure, the buyer sent a simple email, which did not meet contractual requirements.

Contract Termination:

Given this double breach, the facto termination of the contract has been ruled.

The seller has had to return the deposit, but not in a duplicate amount.

It is important to remember that, in contractual situations, compliance with the terms and conditions is essential to avoid conflicts and ensure a fair transaction.