GIPE Newsletter (Nº 24.126) 28 October 2024

LEASES:

ERRORS IN THE BUROFAX

When the landlord notifies that he will not renew the contract at the end of the term, some tenants try to invalidate the notification by claiming that they did not receive it and that the contract has been extended. However, the law does not require that the notification be received personally, so this argument is not valid.

ARE THESE CLAUSES VOID?

Clauses of a rental contract between the owner company and the tenant were evaluated. The clauses that prohibited using the property for commercial activities and carrying out works without authorization were considered valid. However, the clause that obliged the tenant to assume all repairs and a penalty of 150 euros per day for late eviction was annulled, as it was considered disproportionate and contrary to consumer regulations.

SHOULD THE TENANT OF THE PREMISES PAY COMPENSATION?

The law allows that, in rental contracts for commercial activities, the tenant can request compensation if the landlord decides not to renew the contract at the end of the term, provided that he has not waived this right when signing the contract.

The compensation seeks to compensate for the loss of moving the business and losing clientele. For the tenant to be entitled to this compensation, certain requirements must be met:

• The activity must be for sale to the public.
• The contract must end at the end of the agreed term.
• The business must have operated for the last five years.
• The tenant must have expressed four months’ notice of his intention to renew for another five years and at a market rent.

GIPE: Together we will be stronger.