GIPE Newsletter July 11, 2024

LEASES:

IF YOU FAIL TO COMPLY, THERE IS NO DISCOUNT

A tenant requested a temporary rent reduction due to difficulties in her business, to which the landlord agreed. However, the tenant subsequently stopped paying rent. The courts ruled in favor of the landlord, allowing him to collect all unpaid rents without applying the agreed reduction.

The agreement was formalized through emails between the tenant and the property manager. In the email accepting the reduction, it was specified that non-compliance would allow the full debt to be claimed. Therefore, the landlord was able to recover the entire debt.

Landlords are advised that, if they accept a temporary reduction, they make it conditional on the tenant complying with his/her obligations and, if possible, include terms that favor them, such as a mandatory deadline.

CAN NON-PAYMENT INSURANCE BE PASSED ON?

The clause by which the tenant must pay non-payment insurance contracted by the landlord is debatable. Although some courts accept these clauses if the legal limits of additional guarantees are respected (two monthly payments), there are risks.

If the rental extends beyond the initially agreed period, the cost of the insurance may exceed these limits, making the clause voidable. Furthermore, imposing the type of insurance and the company may be considered abusive, especially if the landlord is a legal entity and the tenant is a consumer.

To avoid problems, it is better for the landlord to take out the insurance directly.

REAL ESTATE INTERMEDIATION:

CLAIM YOUR FEES ON TIME

The right to collect fees from a real estate agent arises when the sale of the property is completed, that is, when an agreement is reached between buyer and seller. However, if the agent performs additional work not agreed upon in the contract, such as advice or subsequent procedures, the three-year limitation period for claiming fees begins from the end of the last of these additional services.

To avoid problems, it is recommended that the agent document all services provided, even those not initially provided for in the contract, through emails or other means.

MORTGAGES:

SUSPENSION OF EVICTIONS EXTENDED

The suspension of mortgage evictions for people in a particularly vulnerable situation has been extended until May 15, 2028. This measure, initially established in 2012, applies to debtors who have lost ownership of their primary home in a foreclosure and whose property has been awarded to the bank. To benefit from this suspension, debtors must be in a situation of special vulnerability (such as large families, single parents with children, or over 60 years of age) and the income of their family unit must not exceed three times the IPREM (25,200 euros per year in 2024), in addition to having suffered a significant drop in income in the last four years.