Lease contracts during Covid-19.

Coronavirus News, Featured News, Legal News

The exceptional situation in which we live as a result of the consequences of the pandemic caused by the Covid-19, has caused the cracking of normal compliance of contracts. Amongst them, those related to urban leases, both for housing or a different use.

As a result, there are cases where the outbreak of the pandemic has placed tenants in an exceptional situation resulting in the inability to pay rents agreed, due to decreasing revenues or, in the case of commercial premises or warehouses, the impossibility to carry out the economic activity due to the compulsory closing of businesses.

Assuming that the general principle has been and should be to comply with the terms of the contract, the truth is that the exceptional nature of the situation means that, logically, everyone must share the sacrifice and losses created by an unexpected and unpredictable situation like the impact of Covid-19.

Given this situation, in terms of leases, the legislator has chosen to:

  • Regulate remedies and solutions of obligatory compliance with express legal provisions in cases involving companies and public entities or large holders as lessors, vulnerable people as lessees, leases for use other than housing, self-employed or SMEs. These remedies are regulated in Royal Decree 11/20 of March 31 and which entered into force on April 2, 2020 (for regular home leases); and in Royal Decree 15/20 of April 22, 2020 (for leases of different use).
  • Not regulate and leave it to the parties involve to reaching an agreement in the rest of cases, both in leases related to housing or any other use. This means that, in the event of not reaching an agreement, the parties may go to Court to defend their interests: the landlords demanding payment of what is owed to them, or even urging eviction for non-payment, and the tenants requesting the temporary cancellation or reduction of the rent payment or its postponement, and it will be the Court (or arbitration bodies or mediators if the parties agree to go to them), who will decide the resolution of the situation after examining the specific circumstances of each case.
We analyze each of the options in more detail: READ COMPLETE ARTICLE

 

  • We will be happy to assist you at any of our offices by phone, e-mail or video conference for any of the above mentioned specific matters or any other: CONTACT US
  • To keep up to date with news related to tax, labor and legal issues in relation to COVID-19, follow us on our website (www.uhy-fay.com) and social media (FacebookTwitter and Linkedin).
prestamo-bancario-ue

Spain Increased Bank Lending to Businesses During Covid

Spain increased bank lending to businesses by only 3% during Covid – falling behind 5.3% increase of EU countries Spain added USD31.3 of business loans in past twelve months Lending rises by 3 trillion across…
modificacion-prevencion-blanqueo

Amendments to the Prevention of Money Laundering Law

Although the preliminary draft to amend Law 10/2010 on the Prevention of Money Laundering was published last June 2020, parliamentary approval concerning the text has not yet been granted. We consider that this is a…

Equality Plans And Other Obligations

Companies with more than 50 workers must implement an equality plan and fulfill other obligations. As we already indicated in our previous articles, there is an obligation of companies with more than 50 workers to…
teletrabajo-internacional

International Teleworking / Virtual Work

A New Way To Attract And Manage Global Talent English The pandemic has come to modify our way of working by demonstrating the viability of international teleworking (working from home), and it will put virtual…
Menu