New Tenancy Law changes Ley4/2013

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22 Jul 2013 11:38 PM by miket Star rating in La Mairena, Elviria. 371 posts Send private message

 

Ley 4/2013 - Tenancy Law Amendments

 

I am writing about a friend of mine who decided to sell his property this year for personal financial reasons and he informed his tenant about his plans in March this year. The tenancy hadn't been renewed after the first 11 month contract ended in 2012 but both parties appeared happy with this less than formal arrangement.

The owner advised the tenant that should he find a buyer he would allow them a 3 month period to find another property. He found a buyer in June and advised the buyer that completion could take until the end of September which is 7 months since he informed the tenants. The tenants wrote to the owner recently saying they taken legal advice and they had been advised that they could remain residents for up to 3 years under current tenancy law and they didn't want to move until they were ready!

I was reading the Mark Stucklin article this month about recent changes to the Landlord/Tenant law in June 2013.

I have copied a section of Mark's article below that could be interpreted to apply to current tenancies?

[The landlord may now sell the property and the new owner may terminate the existing tenancy agreement so long as it is not lodged at the Land Registry. Before this law, the new owner was forced to respect the existing mandatory tenancy until it ended. This is a very welcome measure indeed. So for all new contracts signed after the 5th of June 2013 it would be advisable for a tenant to have their tenancy agreement lodged at the Land Registry if they want some degree of protection against the owner selling the property. 

The question I have from anyone qualified to offer advice is, would this new law have any relevance to the owners responsibility to his existing tenant when he is currently trying to proceed with a sale?

I spoke with my own lawyer today and he was surprised to learn that there had been changes to the existing law so I sent him a copy of Marks article.

http://www.spanishpropertyinsight.com/forums/viewtopic.php?f=2&t=7022&p=65538#p65538/
 
 

 


This message was last edited by miket on 23/07/2013.


This message was last edited by miket on 23/07/2013.


This message was last edited by miket on 23/07/2013.

_______________________

Mike T






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23 Jul 2013 3:16 PM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

mariadecastro´s avatar

We are working on the translation of the whole text. We let  you know as soon is out!

 http://www.eyeonspain.com/blogs/costaluz/10443/Legal-tip-967-NEW-Rental-Act-coming-today-into-force.aspx

 

Legal tip 967. NEW! Rental Act coming today into force 
06 June 2013 @ 13:18 
 

Law 4/2013, is its reference, and it makes a difference on the following aspects:

-Legal regime:  It strenghtens  freedom of agreements and gives priority to the will of the parties under the provisions of Title II of the Act

- Legal/obligatory duration of the lease: when it is for home use: mandatory extension is reduced from 5 to 3 years  and tacit renewal from 3 to 1 year,  in order to boost the rental market and give it greater flexibility. 

Recovery of  property by the landlord, to be usedas permanent housing in certain cases, requiring that had passed at least the first year of life of the contract, without express provision therein-

- Contract cancellation by the tenant:  Tenant can cancel the contract at any time after the expiry of at least six months, always notifying  the landlord with a minimum of thirty days. It recognizes the possibility that the parties may agree a compensation for cancellation.

Law to be applied from today, 6th of June 2013. Previous contracts are regulated by former Act unless parties agree to submitt them to this new one. 
 
Full text here
 
 
 
Villaluenga del Rosario, Cadiz, South of Spain.



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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23 Jul 2013 6:04 PM by miket Star rating in La Mairena, Elviria. 371 posts Send private message

That's great Maria,

I look forward to hearing your views about my friends predicament!

I trust everything is going well for you and your team in Costa de la Luz

 

Thanks Mike



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Mike T






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23 Jul 2013 6:50 PM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

mariadecastro´s avatar

 As an initial advise, if contract was signed before 4th of June 2013 Law regime applies as the transitory provisions establishes that it applies for contracts signed from 4th of June on and that just if both parties mutually agree the two parties can submitt the contract to these new regulations.

Initially, it seems to me that the tenant is right, nevertheless I would need to see the whole wording of the contract for an accurate advise 



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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23 Jul 2013 7:07 PM by miket Star rating in La Mairena, Elviria. 371 posts Send private message

 Thanks Maria,

The reality is that the original 11month contract was never renewed so the landlord Tenat relationship continued on a month by month basis for the past 10 months.

I would guess that once the summer period is over the tenants may well find what they are looking for which is a 3 bedroom place but at 2 bedroom rates!!

The sad situation for my friend is that he can no longer afford to maintain his mortage and overheads on a rental income of just €575 a month when his outgoings are almost €1200. If his sale is cancelled then nobody would win!

 



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Mike T






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