Leases after the publication of the Housing Law

This week we briefly review some of the reforms that the Housing Law (Law 12/2023, of May 24, in force since May 26, 2023) has introduced in relation to housing lease contracts (the most outstanding), with the reform of the Law of Urban Leases and the reform of the Law of Civil Procedure. Finally, a brief reference about how RDL 11/2020 of March 31 remains, which was already commented on in this Blog by the undersigned, and today, 3 years later, it is still valid; all this in order to know how the housing lease contracts in force after the Housing Law are affected.

• Suspension of the eviction procedure and releases for Vulnerable households without a housing alternative affected by RDL 11/2020, of March 31.

The requirement that the lessee had to meet within the scope of this RDL, in all verbal trials that deal with rent claims or amounts owed by the lessee, or the expiration of the term, was to be in a situation of social vulnerability or economic surge as a consequence of the effects of the expansion of COVID-19 (situations of vulnerability are regulated in Art. 5 RDL 11/2020). Three years later, there have been 6 reforms of said RDL, extending the initial suspension of October 2020 until June 30, 2023. And, currently, with the current Housing Law in force, in the Third Transitory Provision , it is regulated that said suspension may be lifted by large holders as long as they prove that they have processed a prior conciliation/intermediation process with the competent Public Administrations. It means introducing another element that will delay the recovery of possession of the property.

And to prove said prior process, they may provide a responsible statement confirming that they have gone to the competent services within a maximum period of five months prior to the presentation of the resumption of the suspension of the procedure, without the request having been dealt with or the proceedings having been initiated. corresponding procedures within a period of two months, together with the supporting document of the same or the document accrediting the competent services that indicates the result of the conciliation or intermediation procedure, which may not be valid for more than three months.

Yes, it seems regular opposite sense This third transitory provision, which with respect to those who are not large holders, can lift the suspension of these processes, within the scope of application of RDL 11/2020, of March 31.

• Inadmissibility of claims and suspension of the procedure and of the launches of big forks with respect to habitual residences in which tenants with economic vulnerability without alternative housing.

Demands that are filed as of May 26, 2023, by large holders, for the recovery of possession through a procedure of Art. 250.1 LEC (eviction for lack of payment), 250.2 LEC (precarious), 250.4 (possessory injunction ) and 250.7 (registered real rights) must include the following mentions:

• If the property subject to the procedure constitutes the habitual residence of the occupant
• If the plaintiff concurs in the condition of a large homeowner, ex Art. 3k Housing Law. If it is indicated that it is not a large holder, it must be accredited by certification of the property registry.
• In the case of being a large holder, state and justify the economic vulnerability of the lessee.

If both circumstances concur, being a large holder and the lessee being in a situation of vulnerability, the plaintiff must submit to the prior conciliation and intermediation procedure, accredited by means of: responsible declaration confirming that he has gone to the competent services within a maximum period of five months prior to the presentation of the claim, without the request having been dealt with or the corresponding procedures having been initiated within a period of two months, together with the supporting document or the supporting document from the competent services indicating the result of the conciliation or intermediation procedure, which may not be valid for more than three months.

• incident of suspension for other non-leasing processes,.

Article 441.5 LEC introduces an extraordinary incident of suspension for processes not only leases but for all those regulated in Article 250. 2nd (precarious), 4th (possessory injunction) and 7th (registered real rights). And the previously established deadlines are doubled, the processes may be suspended for two months if they are plaintiffs or four months if they are plaintiffs.

Finally, with the reform of Art. 440.5, open launches are legally prevented, so that the launches must specify the exact date and time of their completion.

• Extraordinary extension of habitual residence lease contracts.

Once the mandatory extension period provided for in Art. 9.1, or tacit extension of Art. 10.1, has ended, two extraordinary extensions may be applied, upon request by the lessee, based on the assumptions included in sections 2 and 3 that introduce the Housing Law: (i) Art. 10.2 LAU, the one-year extension, with two conditions, that the tenant is in a vulnerable situation, which will require accreditation on his part, and the landlord is a large holder; and (ii) Art. 10.3 LAU the annual extension, extendable up to 3 years optionally by the tenant, and mandatory for the landlord, as long as the home is located in a stressed market area. In the latter case, the landlord could deny the extension for reasons of necessity under Article 9.3. LAU 1994.

• rent limitation of housing lease contracts.

In housing lease contracts in which the property is located in a stressed residential market area, the rent agreed at the beginning of the new contract may not exceed the last rent of the contract that would have been in force in the last five years. And for those properties located in a stressed residential market area without a contract for the last five years, when the landlord is a large holder, the agreed rent may not exceed the maximum price limit applicable through the regulated system.

Regarding the annual update of the rent, the 2% established by Art. 46 RDL 6/2022, of March 29, is maintained.