Source: http://belegal.com/articles/showArticle/spain-tenant-not-paying-rent-spanish-property
Timestamp: 2017-10-19 12:45:01
Document Index: 150366016

Matched Legal Cases: ['art 4', 'art 21', 'Art 21', 'Art 202', 'art 9', 'art 1', 'art 21', 'art 21', 'Art 21', 'Arts 1563', 'Art 13', 'Art 1940', 'Art 1940']

Non-paying tenants have become a real problem for landlords who rent out their Spanish property, a problem which seems to have been aggravated after August�s credit crunch. While the first thought of a distressed landlord is to lock the tenant out, or shut off the utilities, this is considered illegal by the Spanish Authorities and may lead the landlord to face criminal charges plus the payment of compensation to the tenant. If trying to reach an amicable agreement with the tenant fails, the only feasible option left to a landlord is to start an eviction process through a Spanish Court of Justice. Although the Spanish authorities have promised to enact a new ruling next year which will reduce the eviction time to only two months, currently an eviction of a non paying tenant takes anything between 10 to 18 months (typically one year).
The first signs of warning should be triggered once you�ve verified your tenant is two or three weeks late in the rental payment. With no delay, the first step will be to send the tenant a registered letter (�burofax�) giving him a reasonable deadline to pay the rental due (two weeks suffices). A lawyer should be able to arrange this for you for a reasonable fee.
If trying to reach an amicable agreement fails, there�s no other option but to initiate an eviction process.
Can�t I just lock them out or cut-off the utilities and force them out this way ?
Changing the locks without the tenant�s permission can be considered either coercion (delito de coacciones) or unlawful entry (delito de allanamiento de morada), or both. These acts are punishable under the Spanish Penal Code. There is ample Jurisprudence on the matter, and as an example we can cite the Supreme Court ruling of the 28th February 2000 (rec 4642/1998).
If you have failed to reach an amicable settlement, you will then have to hire a lawyer and initiate what is known as a �juicio de desahucio�, or simply put, an eviction process. The lawyer will have to wait in some cases 4 months of unpaid rental before being able to file a lawsuit. An eviction process is actually quite slow and takes anything from 10 to 18 months (typically one year) until the tenant is effectively vacated from the property by the law enforcement agents.
An eviction process requires a solicitor and the assistance of a procurador, who acts as a conveyor belt between the lawyer in charge of the matter and the law court, does not belong to any law firm and under Spanish law it is compulsory to employ his services on litigation. A lawyer will typically charge you around 1,500 � in legal fees, plus an extra charge of 700 � in Procurador fees. Other costs may involve those of a locksmith.
The priority for the landlord should be in many cases to recover the possession of the property and vacate the tenant, not to recover the lost rental income prior or simultaneous to the possession. The reason being is that the tenant may use to their advantage several legal mechanisms to delay such payment. These delay tactics allow the tenant to stay even longer in the property at the landlord�s expense. For this reason, the lawyer�s priority should be first to vacate the tenant, and only then to recover the lost rental. These are two separate and distinct legal actions from a procedural point of view.
They can also carry out what is known as �enervaci�n� by which the landlord has to forcefully grant them an opportunity to pay up before the judgment. Even if the landlord refuses payment they can deposit the amount owed at the court and the landlord is forced to continue the rental agreement. This forfeits the legal action taken. However, the tenant can resort to the �enervaci�n� only once. Should they fail to pay a second time this will lead ultimately to an eviction.
There is a vast pool of properties in Spain which are not let due to landlord�s fear of unpaid rental, and the slowness of our eviction process. The good news is that the Government, having realized the importance of lets in our society as an effective alternative to purchasing property, has decided to take action. Plans to pass a new bill on eviction procedures sometime next year was announced on September 28th. This will prove most beneficial, as will speed up significantly the eviction process.
Also, as from 2008, ten new Juzgados de Primera Instancia (First Ruling Courts of Justice) will be created which will handle only eviction procedures. One of these will be located in the M�laga province and will cover all the Costa del Sol.
According to statistics, landlords take an average of 7 months to start an eviction process. Don�t wait any longer. Act now! Lawbird Legal Services has made available to you the �Tenant Eviction� service. Please contact info07@lawbird.com if you need information about this service.
Dear Sir, As per my article herein above I advise you initiate an eviction procedure as soon as possible. You will have to appoint a lawyer to act on your behalf. A new eviction law has been pre-approved which will greatly speed up the eviction process to the relief of everyone, execept the non-paying tenant of course. You can most certainly not move in to your partment whilst the tenant is still there, regardless if they are paying or not, or else face the risk of being reported to the police. You cannot shut off the utilities either. Please read our article which explains the steps you must take. I take the opportunity to offer you our legal services: Tenant Eviction for a Spanish Property. Please contact us if you are interested in this legal service. Regards, Raymundo Larra�n Nesbitt
Dear Pete, Not to worry, we are all entitled to our fare share of mistakes in life, after all, that's what makes us human. Back on topic, just tell him that under Decree 218 you need this to be signed again because the Junta de Andaluc�a is requesting it and he will be held liable. Besides he must sign it it's part of the tenancy agreement as an annex. If the property is outside Andaluc�a then you can use the equivalent law.
The tenant who had a 3 year contract has not paid rent for over 6 months. Cam bank are now taking the villa, but the tenant stilll won't pay, his original contract ends in Sept 09, he also claims he has spent 6,000� on repairs, but no receipts, also i could have claimed on the insurance, but he did not advise me of the so called problems. He did repairs without my agreement, as i did not know about it. He also says he won't allow me onto my property, but is happy to let me lose the villa? He never replies to my emails. What do i do please. I have no spare money live in UK, and do not know what to do. My villa is worth 240,000� with a mortgage of 157,000� What do i do? Thanks Susan
Dear Ms Jaramillo, When you sign a Tenancy agreement you are immediately binded by it. Meaning that if you decide, for whatever raeson, to leave the property ahead of the contract's agreed expiration date you may do so giving enough notice (usually one month) to your Landlord. However you will be held liable for the pending months you agreed to pay until the expiration of the let. Some landlords pursue the outstanding months and some don't, so it's a gamble you take. All will withhold the security deposit which will be not be refunded, in your particular case the 2 months. Yours faithfully, Raymundo Larra�n Nesbitt
Dear Sir, On you letting a property you lose possession of it. You have no right to visit or inspect your own property unless your tenancy is one of those that belong to art 4.2 of Spain's Tenancy Act (luxury rentals) in which case both parties have freedom to agree on this and basically any other point as they are not constrained by this law. If your let is a normal one, post 1st of January 1995, subject to Law 29/94 then the only occassion you would have a right to inspect the property would be as per art 21 on verifying that repair works of some flaw have been carried out correctly. Bottom line, on letting you lose the possession of the property. Another matter is if your tenant allows you to visit the property, that's up to him but he's not obliged to legally. This permission is highly recommended to always be in writing (i.e. an e-mail suffices) to avoid false accusations. If you enter your own property whilst there is a tenant inside you would be committing illegal tresspasing even on you being the landlord. Needless to say this is a pursuable Criminal offence in Spain and you can be reported to the Police. As I always conclude on tenancies, Tenancy Laws in Spain are heavily biased towards tenants for historical reasons that need to be addressed and adapted to social reality. Yours faithfully, Raymundo Larra�n Nesbitt
The illegal tenants original contract ceased september this year, it was illegal, as he never paid the rent for 11 months. Despite notices to quit, he has ignored me, the cam bank want my house now, as the rent has not been paid, therefore the mortgage neither for 6 months. What rights have i now, this rotten man is losing me my home in spain, and hoping to take it over, for free. I have a mortgage, but over 120,000� equity in the villa. I am planning to go over and throw him out. We as landlords need protection, any answers which help me please. thanks Susan
Dear Sir, Normally a landlord cannot just "kick" you out and your tenant agreement may qualify for a compulsory long-term tenancy (5 years) if worded incorrectly. However, as you mention that the property is a six-bed villa, we can assume safely it qualifies as a luxury property. Tenants of luxurious Spanish rentals (vivienda suntuaria) are expressly excluded from the protection of Spain's Tenancy Law (Law 29/1994) as per Article 4. I take for granted, in view of your query, that your let qualifies as a "luxury" rental: the let property must either be larger than 300m2 or else the tenancy must be over 5,5 times the Spain's official minimum wage (which is set at 624€ for 2009). What the above implies is that there is freedom of both parties on ruling the contract's clauses. So in other words, if you agree with your landlord that 2 days' notice suffices for you to vacate the property, then that's all that is required. Bottomline, you are not protected by Spain's biased tenancy laws. Naturally, if you do not pay the rent and remain overtime in the property, the landlord will be forced to formally evict you through the law courts. Yours faithfully, Raymundo Larra�n Nesbitt
Dear Sir, You're welcome. Then your case is simplier than I thought. A 1,600€ let is not regarded as luxurious. So ignore what I've written above on luxury accomodation. As I wrote in my prior reply, it doesn't really matter what the wording of the contract says i.e. seasonal contract or long term contract. It's fairly irrelevant. What really matters is if you are using the property as a/your permanent home. Most of the tenancy contracts I examine are drafted incorrectly in the sense that they can be challenged successfully at a law court and be regarded as long-term contracts. Spain's Tenacy Act overprotects long-term tenants. So there is a way to circumvent this by means of Seasonal contracts as per section 3. Many lanllords wrongly assume that just because they head a tenancy contract as (por temporada) in big bold black letters then that's what it is. From a legal point of view it mat not be the case and it can be regarded as long-term. So it's pretty irrelevant what the parties label the contract as. There's abundant case law from our High Court on this issue. If a contract can be argued its a long-term one (it can be proved you live there permanently, it's your place of abode, the dwelling is furbished with your own furniture etc.) then you are entitled to stay legally in the property for a total period of 5 years providing you pay the rent. A new law that has been recently passed amends this slightly and it's no longer as watertight as it used to be: Express Eviction Law Passed by Congress - 30th October 2009 In any case, if you've read the link I've given you to my article on tenant evictions in Spain, landlords cannot lawfully "throw you out" or change the locks. If they do, you can file what's known as a "denuncia" before a Police Station and the case may be regarded as either coercion or harrassment or both which may imply following a Criminal procedure against the landlord. Changing the locks is regarded as coercion. You already have examples of such cases in our forum: We have being denounced by a tenant of having changed the locks. What can we do? Marie Please read our sub-forum on Landlord/Tenant legal queries: Landlord / Tenant Issues Includes Leases, Evictions, etc. On the other hand, you cannot withhold part of the tenancy at any time to offset any loss such as those arising for dampness as you yourself are now in breach of contract. On signing a tenancy contract there's normally a tricky clause whereby you let the property as its is and it is presumed those problems where already there as you are in your right to inspect it rprior to signing the tenancy contract. I would have to examine your tenancy contract to be sure. Bottomline, you are both at fault, one for withholding unduly the let and the landlord for "kicking you out" changing the locks. Yours faithfully, Raymundo Larra�n Nesbitt
Dear Sir, You're welcome. Well it should really be the landlord who should pay for all these bills, not yourself, as it's part of the maintenance of the property as per Art 21 of Law 29/1994. If the walls were all painted when you arrived, it's fairly obvious you couldn't know the dampness problem. CAP�TULO IV. DE LOS DERECHOS Y OBLIGACIONES DE LAS PARTES. Art�culo 21. Conservaci�n de la vivienda 1. El arrendador est� obligado a realizar, sin derecho a elevar por ello la renta, todas las reparaciones que sean necesarias para conservar la vivienda en las condiciones de habitabilidad para servir al uso convenido, salvo cuando el deterioro de cuya reparaci�n se trate sea imputable al arrendatario, a tenor de lo dispuesto en los art�culos 1.563 y 1.564 del C�digo Civil. La obligaci�n de reparaci�n tiene su l�mite en la destrucci�n de la vivienda por causa no imputable al arrendador. A este efecto, se estar� a lo dispuesto en el art�culo 28. You must communicate with your landlord and inform him of the dampness problems by means of a registered letter. He is obliged to undertake the repair work and pay it. The problem is you cannot really withhold legally any amounts on the tenancy. Although on the other hand it is doutbful the landlord would sue you for a small amount. It's really a gamble you are taking on withholding these amounts but I stress it's not legal. Yours faithfully,
You'e most welcome Teddy. Kind regards, Raymundo Larra�n Nesbitt
Dear Madam, In all honesty it is not an Estate Agency's job to recover unpaid rental. They simply cannot. As a Landlord you are legally entitled to claim from your now ex-tenant all the owed rental, that is the full 9 months. It us up to you to decide if you want to pursue them through the law courts to claim back the unpaid 9 month's rental besides legal interests. Regarding the arrears you mention it is indeed a very serious issue. We have a very long thread dealing with this matter: Bank Repossessions in Spain: A Legal Perspective - 25th June 2008 I believe the arrears should be your prime concern now and you should give them priority. Unpaid rental is second tier in comparison. Yours faithfully, Raymundo Larra�n Nesbitt
Dear Sir or Madam, I was wondering when I would be asked this question. With the ongoing credit crunch the number of reported squatters has soared in Spain. If you watch the Spanish news it's becoming all too common nationwide. The high levels of unemployment are driving people to take extreme measures with vacant properties. From a legal standpoint the problem is how long it takes to have them removed from the property, if at all. Art 202 of the Spanish Criminal Code rules on this type of crime. Depending on how clogged the law courts are it can take between 2-4 years or even more to have them removed, in which time the property may have been completely vandalised with even the fixtures being ripped of the walls, including floor tiles and pipes which are then resold. Let me add that if you are repaying a mortgage loan you will have to continue servicing it regardless. And it gets worse. There have been quite a few rulings recently of judges which have established that squatters cannot be removed from the property they are squatting as it's the only place they have to dwell in (!). So effectively it's as if some judges invited other would-be-squatters to follow suit in view of the impunity of their actions and complete disregard for our laws. Recently a luxury unsold development in Mijas (Costa del Sol) which had been repossessed from the developer by the lending banks was invaded by a huge family of gypsies (150 + !!) which literally stormed into the place swarming it: Gypsy families squat in empty Mijas apartments. Surinenglish.com The problem is that this trend is catching on with the financial crisis and more squatters are being reported. And the same as in England & Wales, the property becomes legally yours after uninterrupted possession (30 years) even if contested and in bad faith. Yours faithfully, Raymundo Larra�n Nesbitt
Dera Sir, I would imagine this "form" is the litigation POA your lawyer needs to represent you and have your non-paying tenant legally evicted. Yours faithfully, Raymundo Larra�n Nesbitt
Dear Sir, Even if they do not have a forwarding address you can regardless issue legal proceedings against them. At some point or other they will have to enter or exit this country and may be stopped. In any case if they have assets abroad, i.e. in the UK, you can always place a charge against them following a Spanish ruling. Please contact us on your matter and we will advise further. Yours faithfully, Raymundo Larra�n Nesbitt
Dear Kevin, The last article my law firm has published has a section dealing with this: Buying Property In Spain Part I. Buying Resale: Avoiding the Pitfalls - 31st January 2010 4. Are There Charges, Encumbrances or Debts Against the Property? Additionally the above land registry information will describe the property (size, bedrooms, boundaries etc) and reveal if there are any charges or liens against it i.e. a mortgage, a right of way or even an embargo. However not all debts against a property are lodged at the land registry. This is an angle which your lawyer will cover as well. For example on buying a resale in a Community of Owners in Spain you will be held liable for all the debts of the previous owner in the current year in which you are buying it and also for the previous year, in other words, dating back two years. The new owner will also be held liable for unpaid utility services and local taxes. This is because these debts go against the property itself, not against the previous owner. So whoever owns the property will be held liable. Other local taxes levied by the Town Hall where the property is located may be left outstanding by the previous owner (i.e. IBI tax and Garbage collection). These may not be lodged either at the property register. It may be a good idea to hire Title Insurance just to play safe. There are companies offering you 20 years legal protection at very competitive prices. It’s well worth looking into. On buying a property a lawyer should request from the vendor a Certificate from the Community of Owner's administration signed by the community's president stating there are no debts/community charges against the property. On Buying a property in a commonhold you will be held liable for all debts against the property for the last 2 years. The fault isn't the vendor's, I'm afraid, it's your lawyers. You should confront him/her on the issue. I also happen to explain it on my article on Community of Owners in Spain: Comunidad de Propietarios: Avoid Problems with Your Neighbours in Spain - 26th June 2009 Owners’ Duties Section 9 rules them in detail. The main duty will be, of course, to contribute to the maintenance and financial upkeep of the Community of Owners. Failure to pay the community fees will result in the Community of Owners placing a lien against your property and possibly auctioning it off. This legal procedure in Spain works surprisingly efficiently. You have been warned! This important article mentions as well the endowment of the communities mandatory reserve fund, in accordance to each owner’s commonhold quota. The purpose of this fund is to create a financial pool for the maintenance and repair of the building i.e. fa�ade’s flaked painting or lift repair work. This reserve fund shall be endowed with an amount not lower than five percent of its last ordinary budget. Its funds will be used as well to pay for the building’s insurance cover. On buying a resale in a community, the new owner will be held liable for the prior owner’s communities’ debts for the current year of transfer of ownership as well as the natural year immediately precedent (art 9 e). The property itself will be burdened with a lien for unpaid communal debts. Which is why under law, the signing of the deed of transfer of ownership requires a Communities’ certificate stating that communal fees are up-to-date for that unit, signed by the communities’ administrator. The purchaser can however waive this requirement voluntarily. Regards, Raymundo Larra�n Nesbitt
I have a tenant on a rent to buy option, they have put down a large sum and pay the morgage for the next 2 years then due to compleat, if they defalt they loose everything. We are 6 months into the contract. They asked for 3 months grace on the rent as they say they a struggleing, i declined. They then sent me an email stating it was there intention to leve the property at the end of the month (whitch is when there next rent is due), i confermed my acceptance in way of reply email. They have no seeked legal advice and there rep has told them thy may as well stay in the house asit can take 2 yrs for me to force them out, meaning i now have to pay �1500 per month while they stay in the property ! Given the written conformation that they were going to leve the property does that nopt mean i can change the locs at the end of february ?
Dear Sir, I'm afraid you cannot change the locks, no, despite their e-mail confirming they would leave in advance. Yours faithfully, Raymundo Larra�n Nesbitt
Dear Mar�a, There's a nice blog post written by Antonio Flores summarizing what I've been hammering on this thread for years now: Expat Legal-Gossip Gathering Pace (Part 1) - February-27, 2010, Quoting an excerpt: Spanish Rental agreements 1.My tenant is not paying, I will change the locks: FORGET IT, you can end up in the gallows for this because it is trespassing. 2.My tenant is not paying; I will cancel the electricity and water supplies: CAREFUL, doing this is punishable under the Spanish Criminal Code as it is considered to be coercion and/or harassment. 3. My landlord has not made some repairs I have asked him to do so I am deducting the repair costs from the rent. NO, if you do this you can get evicted. Rent has to be paid every month, religiously, and if you want to ask him to carry out remedial work on the property you have to notify him formally. They are 2 separate issues and cannot be mixed up because the law has established this. 4. I have an 11 month contract which I am told is short term and so I will be able to kick the tenant out on expiration of the term: FALSE, all residential rental contracts can be challenged and extended up to 5 years, optional for the tenant and mandatory for the owner. A registration certificate with the local Town Hall will suffice to invoke this. 5. My contract is in German so it is not valid: A very common fallacy. Any document which can be translated by a registered or certified translator or interpreter is valid in a Court of law. Your case would be number three. At no time can you withhold part or all of the rent so as to offset it against a potential loss or lack of performance of the landlord. Your landlord is obliged to repair both as it affects the habitation conditions of the dwelling in compliance with art 21 of Spain's Urban Tenancy Act which presumably rules your tenancy if it was done after 1994: Art�culo 21. Conservaci�n de la vivienda 1. El arrendador est� obligado a realizar, sin derecho a elevar por ello la renta, todas las reparaciones que sean necesarias para conservar la vivienda en las condiciones de habitabilidad para servir al uso convenido, salvo cuando el deterioro de cuya reparaci�n se trate sea imputable al arrendatario, a tenor de lo dispuesto en los art�culos 1.563 y 1.564 del C�digo Civil. La obligaci�n de reparaci�n tiene su l�mite en la destrucci�n de la vivienda por causa no imputable al arrendador. A este efecto, se estar� a lo dispuesto en el art�culo 28. 2. Cuando la ejecuci�n de una obra de conservaci�n no pueda razonablemente diferirse hasta la conclusi�n del arrendamiento, el arrendatario estar� obligado a soportarla, aunque le sea muy molesta o durante ella se vea privado de una parte de la vivienda. Si la obra durase m�s de veinte d�as, habr� de disminuirse la renta en proporci�n a la parte de la vivienda de la que el arrendatario se vea privado. 3. El arrendatario deber� poner en conocimiento del arrendador, en el plazo m�s breve posible, la necesidad de las reparaciones que contempla el apartado 1 de este art�culo, a cuyos solos efectos deber� facilitar al arrendador la verificaci�n directa, por si mismo o por los t�cnicos que designe, del estado de la vivienda. En todo momento, y previa comunicaci�n al arrendador, podr� realizar las que sean urgentes para evitar un da�o inminente o una incomodidad grave, y exigir de inmediato su importe al arrendador. 4. Las peque�as reparaciones que exija el desgaste por el uso ordinario de la vivienda ser�n de cargo del arrendatario. The problem you have is that you moved into the property with these problems ongoing. Normally all Tenancy Agreements have a clause whereby the tenant acknowledges that the dwelling is in perfect condition to live in. Meaning there are no problems. You should have specifically worded into your Tenancy agreement there were outstanding problems which the landlord was obliged to deal with and carry out the remedial work. Yours sincerely, Raymundo Larra�n Nesbitt
Dear Mar�a, I guess you are right. You are not the first one to ask me for such an article, I'll just have to write it! I think you should advice your landlord you are bound to file a denuncia for coercion against him if the electrical supply has been cut-off because of unpayment. Maybe that will save you all the trouble of actually having to file it and you are promptly refunded by him. If you want to leave the property you will still have to give 30 day's formal notice (registered letter i.e. burofox) is advisable as evidence. Your landlord has clearly breached the Tenancy agreement. You should have your 2 month's tenancy deposit refunded, yes. Regards, Raymundo Larra�n Nesbitt
Hi, I have read all the comments on your forum and they make very interesting reading. I realise I have made some mistakes but so has my landlord. I'm renting an apartment for 750� a month and during the recent heavy rain storms the ceiling came down flooding half of it and causing damage to both the apartment and our own property. An insurance assessor promptly arrived and agreed the damage was caused by the flood and valued our costs at �2,000, (the ceiling fell on my computer and phone). The assessor went on to explain that his company wouldn't pay our claim as it had happened many times before and so wouldn't be covered. He suggested that we came to a rent agreement with our landlord instead. I now realise it was a mistake but I only paid �500 rent that month and said the rest would be paid once repairs were made and compensation made for my losses or our losses were taken from any future rent. He refuses to pay or accept any blame whatsoever, repairs have not taken place and half the flat is unusable. He now insists I leave at the end of the month but if do this I know I will never receive my compensation. What is my best option to resolve this? Many thanks in advance Tim
Dear Sir or Madam, You cannot be held liable for this accident. You tenant cannot expect you to pay for their material loss. As per my reply above, you would however have to carry out the remedial work neccessary on the property to make it once again fit for habitation as per art 21 of Spain's Urban Tenancy Act. At no time can your tenants withhold the rent to offset their material loss. Nor can they ask you to offset the two month's rental deposit against their loss either. You can always claim against your neighbour for this accident. Hopefully they too will be insured. Actually it's you as a landlord who should have home insurance, not your tenants. At no time can your letting agents be held liable for this unfortunate accident. They are completely unrelated to the accident. Estate agents cannot be held liable either for non-paying tenants, sorry. Please read the following article which may be of help next time you let the property: Non-Paying Tenants? No Longer an Issue – 23rd October 2009 Yours faithfully, Raymundo Larra�n Nesbitt
Dear Sir or Madam, I understand your plight. When I was also an undergraduate student in Madrid landlords never missed out on the opportunity of taking advantage of poor students which by definition are broke. I guess things haven't changed much over time. As per my post here http://www.marbella-lawyers.com/forums/showthread.php?t=111&page=8#76 you cannot legally withhold the rent against the owed deposit. But you already knew this. What you are really trying to ask me politely is if it's worthwhile for your Landlord to sue you for one month's rental. In short no, unless you are on a luxury accomodation. But if you are the average hard-working peniless student you can be almost certain they will not pursue you for one month's let. It is not worthwhile for them. It's like killing a fly with a machine gun. Good luck. Yours sincerely, Raymundo Larra�n Nesbitt
"I have a tenant with whom my wife signed a lease for an unfurnished two bedroomed apartment just over a year ago. It was an eleven month lease although the tenant expressed a desire for a longer lease and a wish to stay for at least 24 months and so an extra clause was built into the lease permitting an automatic extension on the lease up to 22 months. The possibility of purchase after this time time was discussed but not written up legally. Although I have had no problems with my tenant, my situation in the interim has changed. I initially included a clause in the lease to say that there were were "no grievances against the property" which might cause a tenant difficulties and that all payments against the community expenses were paid. As it turns out I have been unable to pay the community expenses to the amount of approaching 5000 euros. I was actually aware of this when I signed the lease with my tenant but did not see it as a possible interference. As a result of non-payment of this debt, my tenant has been approached by the Community lawyers (V and V Advisors) , threatened, and had rights to areas of the urbanisation restricted. My tenant has suggested that our original lease is not legal and she is maintaning that the original rent is no longer binding as the original lease was signed in good faith with certain understandings. She claims the original lease has been rendered void (by myself because of my knowing of ongoing and permanent debts against the property which would (and does) affect the rights of the tenant with the community) and thus, she says, the original lease never was binding since I as the Landlord was aware that the original agreement was invalid since I knowingly signed subsections whilst being aware of them to be of the contrary. My tenant has offered a lower rent:800 euros due to the disparity between what was initially offered as part of the rental agreement and what is now available. As far as I am concerned, the problems between the community and I have occurred after the contact and do not have anything to do with the the present contract with the original for the monthly rent of 900 euros which I am still expecting. As the owner of the property, I am requesting the continuation of the 900 euros the tenant has paid for the past 12 months since I have my own obligations in the form of mortgage etc. I am attempting to catch up with the community fees although I do realise that there is a considerable disparity between what I have pa�d and what is actually owed. In the meantime I have been told that access for my tenant will continue to be be restricted. A.D. King Please advise Andrew King c/o headstartlearningcentre@yahoo.com
Dear Sir or Madam, Your tenant must continue paying the �900 agreed as per the binding contract signed. However, you have breached the contract as per the signed clause on signing a Tenancy agreement with them as there are outstanding debts (community fees) against the property which impact on the tenants quality of life. It is up to your tenant to terminate his tenancy ahead or else you can both reach an appropriate settlement and add it in writing as an annex to the Tenancy agreement. i.e. to offset the tenant being barred of communal facilities out of no fault of his own you agree to lower the monthly rental �200 as compensation. Yours sincerely, Raymundo Larra�n Nesbitt
Hi Ricky, You've been well advised. A tenant should always demand from the landlord that all outstanding issues be repaired prior to them moving in. i.e. green swimming pools, flaked painting, household appliances in disrepair, gardens in poor state etc. Normally all Tenancy agreements have a standard clause whereby the tenant acknowledges the property is in perfect conditions to be rented and lived in. Once you sign this clause any issues which were not resolved prior to you moving in, despite promises from the landlord, can actually be blamed on yourself to wear and tear unless of course you took the precaution of wording these issues highlighted in the snag onto the Tenancy agreement. i.e. a retention is practices on account of the green swimming pool with the landlord undertaking the obligation to have it repaired. My advice would be to always make sure to do a snag prior to both moving in and signing the Tenancy agreement. Once you've verified all issues have been solved by the landlord at your entire satisfaction only then sign the rental contract. Regarding shutting you off the water supply for whatever reason, i.e. landlord not paying it. I copy you in my last unpublished article: Renting Property in Spain: Common Mistakes to Avoid (Part I) - 12th May 2010 Levante Lifesyle Magazine Renting Property in Spain: Common Mistakes to Avoid (Part II) - 16th June 2010 Levante Lifesyle Magazine 10 Common Mistakes to Avoid on Renting Property in Spain Raymundo Larra�n Nesbitt 22nd of April 2010 I thought it would be a good idea to summarise in an article the most common faults that both landlords and tenants make on letting out property in Spain. Some of these slip-ups can cost landlords dearly and may even lead them to being prosecuted criminally in Spain by their tenants. E.g. http://www.libertaddigital.com/sociedad/dispara-a-su-casero-por-entrar-en-casa-para-exigirle-que-pagara-el-alquiler-1276399890 Many problems stem from the fact that landlords don’t fully grasp the legal implications of renting a property out in Spain. What renting entails is losing possession of the property which means you can no longer enter the property if it is not with the permission, preferably in writing, of your tenant, regardless if they are up-to-date with the rental or in arrears; that is not an issue. Landlords cannot enter their own property even if it’s just for “inspection” purposes without the said permission. There are many more misunderstandings and blunders that I could have listed although for simplicities’ sake I’ve decided to leave them out to keep this article reasonably short. Landlord’s top five mistakes Many expat landlords are unaware of the different mechanisms in place to secure rental income and often fail to implement them in their rental agreements which can leave them unprotected if the tenant does not, or cannot, pay the rent. These mechanisms are explained in my article.- Landlord: Keys to Successful Rental Income – 31st January 2008. Most of the blunders made by landlords are related to their tenants becoming non-paying tenants. This can understandably exert great pressure on landlords, especially if they are relying on the rent to offset it against their mortgage repayments, which can easily lead them to take rash decisions that may come back to haunt them later on in life- 1.	Shutting off utilities (water & electricity). Landlords often feel the urge of doing this on their tenant missing out on their rental. If you happen to do this your tenant can report you to the police. Doing this may be labelled as either coercion or harassment or both. Your tenant can prosecute you criminally on doing this. So you may want to think twice before doing this. If the utilities are in the name of the landlord and he stops paying them on purpose to mount pressure on the non-paying tenant he can equally be prosecuted as it’s equated to shut-off the utilities physically. 2.	Changing the locks. Same as above, it may be regarded as either coercion or harassment or both and you may be prosecuted criminally for this. 3.	Evicting non-paying tenants with the assistance of “friends”. Landlords may feel tempted to take justice in their own hands and “break in” the property assisted by some square-jawed tattooed acquaintances from the local pub. This is seldom a bright idea and may land you and your “friends” in a Spanish jail for unlawful entry (trespassing). The only way to evict your tenant is to hire a lawyer and initiate a formal eviction procedure through the law courts. New laws have been enacted to help speed-up the eviction procedure. But on average it is still taking 5-9 months depending on how clogged law courts are. 4.	Entering the property to perform a “routine check”. “It’s my property and I will enter it when I please.” I’ve often heard this line from disgruntled landlords who just cannot believe they are forbidden from entering their own property in Spain if it’s not with the prior –written– permission of their tenant. You simply need their permission following Spain’s Urban Tenancy Act regardless if they are paying the rent or not. 5.	Eleven month contracts are short-term and watertight. Erm, I’m afraid not. This single blunder is responsible of many legal problems at a later date. What qualifies a rent as either a short or long-term one is not the fact that it’s labelled one way or the other. What matters really is that the tenant and his family are not using the property as their main residence and this must be expressly built and worded into the Tenancy agreement so it’s truly a short-term tenancy. Tenants can successfully challenge at court short-term contracts of 11 months morphing them into long-term ones (5 years). During the next 5 years you will be unable to recover possession of the property whilst the tenant pays being forced to rent it out. The new Express Eviction Law has now amended this and allows landlords to introduce clauses that waive the statutory long-term requirement of 5 years i.e. a clause whereby it is stipulated that the property will be needed for the landlord’s own use or for that of his family. However, if after 3 months’ time the landlord or his family have not taken possession of the property, he will be forced to re-install his ex-tenant and award him a suitable compensation to offset the expenses of the move. Luxury rentals are excluded from this protection as Spain’s Tenancy Act does not rule them; luxury rentals are ruled by the will of the parties. Tenant’s top five mistakes To be fair to landlords tenants also make their fair share of mistakes.- 1. A verbal Tenancy contract is better than a written one. Erm, no. I really don’t know where tenants get this idea from. In Spain verbal contracts are as equally valid as written ones. The problem lies when there are disagreements. It’s very difficult to prove what was actually agreed in a verbal contract i.e. landlord pays for the utilities. It’s in the best interests of both tenant and landlord that rental agreements are always put in writing. Tenants have a right to demand having a verbal contract put in writing by their landlord. 2. I can always offset the 2 months let deposit against my unpaid rental. No you cannot. That two month’s deposit payable at the on start has its own purpose and at no time can be used to make up for any shortfall on the rental. 3. I can always leave the property ahead giving 30 day’s notice. Yes you can but you will be held liable to pay for the remaining months you agreed to rent. i.e. say you signed an 11 month contract and on the third month of the let you give notice that you will be leaving ahead of the expiration of the agreed rental. You may leave ahead but you will owe the let for the remaining 8 months despite you giving notice, it is unrelated. Some landlords will pursue you legally if you fail to pay the balance owed and yet others will turn a blind eye thinking it’s hardly worthwhile the legal hassle. Obviously depending on the sum of money owed it may be more or less worthwhile to pursue you legally. Whatever the case may be, you ought to know that legally you owe the outstanding months and if you decide not to pay them you are taking a legal gamble that may or may not pay off. 4. Deducting damages from the rent. All tenants feel tempted to fall for this one. Classic examples of this would be: i) After heavy rainfall I’ve had this terrible damp patch with an aggressive mould growth which has cost me €300 to be removed. Plus my new laptop got damaged as a result (€1,000). I’ll deduct the €1,300 from my let to make up for both. ii) The washing machine broke down and cost me €150 to repair. iii) My landlord is not paying the community fees and as a result I’m now being disallowed from using the complex’s facilities i.e. swimming pool. I’ll just pay €300 less a month to offset for this. Cont'd below
I could put more real-life examples of the queries I’ve received over the years but I think that’ll do for now. At no time can a tenant decide unilaterally to pay less rent or withhold part of the rent to offset against these unforeseen damages or expenses. First of all some damages have to be paid, under law, by the tenant himself; especially those relating to the normal wear and tear on renting out a property (Art 21 of the Urban Tenancy Act as well as Arts 1563 and 1564 of the Spanish Civil Code). It is seldom a good idea to practice retentions or withhold amounts when you feel it’s appropriate without having the landlord’s agreement. This may even be a cause for legal eviction as you are effectively breaching the signed Tenancy agreement. 5. The property is being repossessed and I’m being asked by the lender to vacate it. Actually you don’t have to in long-term tenancies. Following Art 13 of Spain’s Tenancy Act it allows tenants to stay in the property until they complete 5 years providing it’s a long-term tenancy. This is true for urban rentals signed after the 1st of January 1995. The bank after repossession takes on the role of landlord. Lenders on repossessing the property must respect by law outstanding tenancy agreements. The tenant must continue paying the rent to the new owner, the bank. Obviously both tenant and bank are free to decide that it may be better to reach an amicable settlement to leave the property ahead of the 5 years. i.e. they can decide on a suitable compensation for all the hassle involved, say 6 month’s tenancy, plus the expenses of the removal. There’s freedom to agree. In Conclusion Spain’s Tenancy laws are biased towards tenants for historical reasons that need to be addressed immediately. The Government has taken notice of this pro-tenant bias and are regularly passing new laws, i.e. Express Eviction Law, with the aim of streamlining rental procedures. There is much to be accomplished still if Spain’s rental market is to become as strong and relevant as that of fellow European countries. Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. Related articles: Rent-to-Buy Or How To Profit From Spain's Market Downturn – 5th November 2009 Express Eviction Law Passed by Congress – 30th October 2009 Non-Paying Tenants? No Longer an Issue – 23rd October 2009 Comunidad de Propietarios: Avoid Problems with Your Neighbours in Spain – 26th June 2009 New Express Eviction Law: Much Ado About Nothing -13th July 2009 Paying the Rent Late Twice will be Cause of Eviction – 4th June 2009 Spanish Express Eviction Law Pre-Approved – 24th December 2008 Landlords Afraid of Non-Paying Tenants Take Pre-emptive Measures -16th September 2008 Landlord: Keys to Successful Rental Income – 31st January 2008 How to Evict Non-Paying Tenants – 17th December 2007 Related legal services offered by Lawbird: Tenant Eviction for Spanish Property Drafting of Tenancy Agreements Lawbird Legal Services is a law firm with broad experience in Litigation, Corporate and Spanish Property Law. Yours faithfully, Raymundo Larra�n Nesbitt
I am a property owner and about to start a new agreement with an agent for them to rent out my property on short-term (landlord/tenant) lets to tenants that they source. Having previously experienced a agent go bust on me losing rent and deposits that they held, I requested that this new agreement allow all tenant deposits and �last-month� rent to be held by me rather than the agent. The agent have said that they cannot do this because it is a legal requirement in Spain for deposits to be held by the agent. Is this correct? What if there were no agent the landlord/owner would hold the deposit.
Dear Sir, There is no such legal requirement in Spain. Deposits are normally held by the landlord. Yours faithfully, Raymundo Larra�n Nesbitt
Dear Madam, A verbal Tenancy agreement is just as valid in Spain as a written one from a legal point of view. It takes on average between 4-9 months to have them removed depending upon just how clogged the law court ruling the case is. Regardless if the tenancy is short or long-term one, you will need to have them legally evicted. I take for granted your tenancy agreement had no arbitration clause. In which case you would have to hire a litigation lawyer to initiate a formal eviction procedure. You cannot evict them on your own or else they could file a report against you before the Spanish police which could lead to you being sentenced to prison. You cannot change the locks or shut-off the utilities; you may be reported to the Police as it’s a criminal act. Please read my article above. I take the opportunity to offer your our legal service on Tenant Eviction for a Spanish Property: Who is it intended for: This service is provided to landlords that have a non-paying tenant in their Spanish property (either a dwelling or commercial premises). What does the service include? •	Analysis of the case and legal advice. •	Preparing and filing your suit. •	Dealing with court proceedings. •	Attending judicial hearings and submitting evidence. •	Claiming unpaid rents before the Spanish Courts. •	What are the steps? How much does it cost? i)	Non-luxury rental: •	€1,300 plus 16% VAT in legal fees •	Plus a further €600 for the court agent’s fees. ii)	Luxury rental (those that exceed €3,500 a month): •	€1,300 plus 16% VAT in legal fees •	Plus a further €600 for the court agent’s fees. •	10% on all the recovered amounts (i.e. rental arrears). We will first try to reach an amicable agreement. If this fails, we resort to taking legal action. It generally takes less than 9 months on average to have the tenant evicted. If you are interested in hiring this legal service, please e-mail me. We act nationwide. As from The 1st of July 2010 professional VAT will be raised from 16 pc to 18 pc. Yours faithfully, Raymundo Larra�n Nesbitt
hi i was wondering if anyone could help? a friend of mine rented their apartment out to a couple. they lived there for around 3 years, the contract was for 11 months each time and then at the end of those 11 months a new 11 month contract was put together. at one point during their stay my friend lowered the rent for them so a new 6 month contract was drawn up from feb 2009-sept 2009. after that period the tenants started paying the full rent again. however from sept 2009 - feb 2010 no new contract was drawn up and the tenants left in feb 2010, giving my friend 1 month�s notice. now these tenants have not paid the electric bill from jan 2010-feb 2010 (it may also be from dec 2009 too) so they owe her money for the electric bill. she has asked them for the money but they have not contacted her and she has not new address for them. legally does she have any rights in terms of getting the money back? and if so how can she do this? i wasn�t sure as they did not have a contract showing that they lived there, however there is a concierge in the building and neighbours who will confirm they lived there and email messages from my friend and the tenants. thanks in advance for any advice.
Dear Sir or Madam, It doesn't matter if they did not have a written contract, they will be held liable for these outstanding utility bills regardless. A verbal Tenancy agreement in Spain is just as valid as a written one although for obvious reasons, such the problem you highlight, it is not recommendable. The problems rather are: 1. Is is worth all the hassle and expenses of hiring a lawyer to pursue 2 or 3 month's electrical bill? How much are we talking of? �400? �600? 2. You need to find them (address) 3. Do they actually have assets in Spain or elsewhere? Yours faithfully, Raymundo Larra�n Nesbitt
You are welcome. As per my post above exactly of what amount owed are we speaking of? Yours faithfully, very similar to what you said, around 400-600�
Dear Colin, To have you evicted from the property this can only be done through a formal legal procedure which implies you receiving a registered letter from a law court informing you of the impending court case being held against you. Whether you receive this letter or not will not stall this procedure. This letter is received at the property being rented. To stall the eviction procedure, if it really has been filed, you can lodge the back rental at the law court where the court case is being dealt with. If there is no case against you you can lodge it in the bank account of a Notary as proof of payment. In both cases if you bring up to date the owed rental they cannot evict you. In Spain late payment is enough cause to have you evicted. You will not be able to follow the above strategy a second time if it happens and you will be evicted regardless. More on this: Paying the Rent Late Twice will be Cause of Eviction � 4th June 2009 Yours sincerely, Raymundo Larra�n Nesbitt
Hi, You are welcome Colin. Addressing your legal queries: 1) how do I find out if there is a law case filed? You would need to appoint a lawyer to find out on your behalf. As I wrote above it is almost certain you wil lreceive at that property you're renting a recorded delivery letter from the law court that you must sign upon receipt. 2) How do I find out how much money I need to lodge with the Court or Notary.? It will be in the lawsuit filed against you (if there is actually one). Your appointed lawyer can find out the exact amount to cancel the legal proceedings. 3) How long do eviction processes now take in Spain? Tricky question. There's anew law that was passed late last year which aimed to speed things up. It would seem that in some parts of Spain it is working remarkably well whilst in others it's as usual. On average they are now taking between 5-10 months dependent on just how clogged the law court dealing with it is. Let me know if you need us to represent you on this matter, we act nationwide. Yours sincerely, Raymundo Larra�n Nesbitt
Dear David, The legislation you mention was brought into place late last year. The results are very uneaven, in some parts of Spain its has reduced drastically the timelines (3-5 months) yet in other parts of Spain it is still taking 10 months on average. More than the law you mention, what has really made an impact in some parts of Spain has really been Law 13/2009 which has streamlined vastly litigation procedures. Regarding the law you mention, dubbed popularly as the "Express Eviction Law": New Law Attempts to Speed up Eviction of Defaulting Tenants in Spain - 24th December 2009 Express Eviction Law Passed by Congress -30th October 2009 New Express Eviction Law: Much Ado About Nothing -13th July 2009 Spanish Express Eviction Law Pre-Approved - 24th December 2008 Regarding the law I mention, Law 13/2009: Unclogging the Judicial System (Part I) - 15th February 2010 Unclogging the Judicial System (Part II) - 15th March 2010 I strongly suggest you read my detailed articles (and the ensuing thread with queries) which aim to spell out the myths on rentals & evictions in Spain: 10 Common Mistakes to Avoid on Renting Property in Spain – 22nd of April 2010 How to Evict a Tenant who is not Paying the Rent – 17th December 2007 Regardless if the tenancy is short or long-term one, you will need to have them legally evicted. I take for granted your tenancy agreement had no arbitration clause. You can browse our forum on similar cases: Landlord / Tenant Issues In which case you would have to hire a litigation lawyer to initiate a formal eviction procedure. You cannot evict them on your own or else they could file a report against you before the Spanish police which could lead to you being sentenced to prison. You cannot change the locks or shut-off the utilities; you may be reported to the Police as it’s a criminal act. Please read my article above. We can offer you our Tenant Eviction for a Spanish Property: Who is it intended for: This service is provided to landlords that have a non-paying tenant in their Spanish property (either a dwelling or commercial premises). What does the service include? •	Analysis of the case and legal advice. •	Preparing and filing your suit. •	Dealing with court proceedings. •	Attending judicial hearings and submitting evidence. •	Claiming unpaid rents before the Spanish Courts. •	What are the steps? How much does it cost? i)	Non-luxury rental: •	€1,300 plus 18% VAT in legal fees •	Plus a further €700 for the court agent’s fees. ii)	Luxury rental (>€3,500 p/m): •	€1,300 plus 18% VAT in legal fees •	Plus a further €700 for the court agent’s fees. •	10% on all the recovered amounts (i.e. rental arrears). We will first try to reach an amicable agreement. If this fails, we resort to taking legal action. It generally takes less than a year on average to have the tenant evicted. If you are interested in hiring this legal service, please e-mail me. We act nationwide. Yours sincerely, Raymundo Larra�n Nesbitt
Dear Colin, It would cost as follows: �1,300 plus 18% VAT in legal fees Plus a further �700 for the court agent Yours sincerely,
Hi there, I have read with interest your articles as well as the various blogs and would be interested to have your legal point of view. I am an Englishman owning several properties, one of which I have rented out on a room to room basis, usually to young Spanish guys working in the building trade. Each occupant has a separate but simple occupancy agreement ( anything from a three month to two year arrangement) . They all share the facilities within the property. I now realise, the effort in collecting rent, especially when nobody is at home and maintaining the property is just not worth the trouble. Please correct me if I am wrong, I understand the easiest way to get rid of the whole lot of tenants in one attempt is to have the one regularly consistently bad paying guy evicted on breach of agreement which would mean he would have to leave the entire property empty for me to repossess. The other tenants automatically being evicted under the same ruling. I had thought that I would have to take action against everyone individually but I�ve been led to believe I only have to get rid of one to get rid of them all. And with this particular guy�s bad payment record he does represent the easiest one to go against with my strongest chance of legally winning his eviction. In theory this sounds like an ideal solution to get everyone out of my property in one simple action, so I can put it on the market, but in reality, would it actually work. My only concern is that all the other men are paying on time and meeting their obligations with regard to keeping the property clean and in good working order, one particular guy has been in the property for a few years. Are there any laws that the other guys might evoke to protect themselves - I suppose I should be aware of this in advance.
Hi, please could you tell me how this new law of eviction will help me, i'm a pensioner and have moved to Andalusia to live, and rented my piso as i am unable to sell it at the moment, in the costa brave, the tenant a young girl of 18 has not paid rent after the first month and is into the deposit money, so at the end of this month she will start to owe money, she is advertising a room to let, she has undesirables in there she is leaving rubbish in the enterance hall, and she has a rabbit on the balcony, the elderly couple upstairs to her are very concerned, what can i do? Dear Maura You can start taking action against her to have her evicted for late payment or non-payment. This new law works very well and some parts of Spains and yet in others it has barely made a dent on the eviction timeframe. In the few parts of Spain where it has worked remarkably well more than it being related to this new Express Eviction law it is really to the improvements brought about by key Law 13/2009 (and also here) which has made an impact streamlining the procedural procedures on evicting non-paying tenants cutting down timelines in some cases to a mere 5 months or less from start to finish. Yours sincerely Raymundo Larra�n Nesbitt
Dear Sir, I have just, by accident, come across this website and evidently you are more than knowledgeable on the affairs of eviction and tenant/landlord rights. I am wondering if your law firm has any experience in acquisition through adverse possession or Usucap�on by prescription as I believe it is referred to here in Spain. My case is quite complex and I shall try to keep details to the briefest. Like numerous properties in Andalucia in the �campo� regions that are occupied with dubious title, I have occupied the same private property publicly, continuously and conspicuously for almost 25 years since 1985. In1995, my occupancy was legally challenged in court claiming that I was a �precarista�(unlawful occupier). The plaintiff was unsuccessful in proving their case and I was absolved of all charges and awarded costs in my favour. Since this time I have occupied the same property in the same conspicuous manner with all bills and services being met timely and without question. My neighbours will verify my continued, unbroken, occupation of the property and good character during the whole 25 years. I understand here in Spain there are various criteria to establish possession via Usucap�on, within appropriate prescribed time limits and under varying circumstances - Spanish Civil Code, Titula XV111 arts. 1940,1941,1957 etc. My question is, as my occupation has not been successfully challenged for more than 25 years, can I initiate a procedure to acquire possession though Usucap�on or do I have to wait upon a further challenge that may never materialise. If successful, is title awarded or is just continued right of occupation granted. Do I need the services of a �specialist� law firm or is this something your own law practice would consider; and if so, what could be the likely costs involved. I would be happy to identify myself in due course to your law firm, but for the moment and for obvious delicate reasons, I would prefer to remain anonymous; this I am sure you understand. B.J.
Hi BJ Interesting legal query, we don't get many of those. I believe you have to wait 30 years to claim ownership of this real estate. Unless you tell me that you purchased it from someone acting in good faith, or it was given or transferred to you by someone who you thought was the rightful owner at the time. You would need both good faith and just title (Art 1940 of the SCC) to take ownership of the property rightfully after 10 years of continued and uninterrupted possession; but you seem to be lacking both elements following what you write. If you just walked into this derelict property 25 years ago and took material possession of it you will need to complete 30 years before it can be lodged under your name following Common law. So you would still have 5 years to go. If you've been sued that would interrupt the timeline. However, fortunately for you, as you won the civil case it will not prejudice your continued possession of the property having no effects at all in the time elapsed already (25 years). Yours sincerely Raymundo Larra�n Nesbitt
Dear Fleur First of all a house without a Licence of First Occupation (LFO, for short) cannot be rented, it is illegal. The whole point of a LFO, as its own name indicates, is a legal check to verify the property is apt for human dwelling. Another matter is if the competent Authorities choose to disregard existing laws and do not clamp down on such common -albeit illegal-practices. Stemming from the fact the property has no LFO you get all the typical associated problems: you are on builder's supply (which can be shut off at anytime without giving prior notice and without any legal recourse), lack of fixtures and finishings etc. I wrote an article on LFO's. Please read it, specifically the drawbacks of living in a property without lacking a LFO. The Licence of First Occupation Explained - 29th January 2009 Regarding your landlords, they cannot shut off the utility to coerce you as it would be a pursuable Criminal act for which they can be prosecuted. In your case you are on builder's supply therefore there are no utility bills. Please read the following article: 10 Common Mistakes to Avoid on Renting Property in Spain - 22nd April 2010 The above article explains legally how a landlord cannot enter his own rented property which would be regarded as illegal tresspassing (which can be criminally prosecuted on the tenant reporting it to the police). He needs the tenants permission (preferably in writing) to visit his own property. Yours sincerely Raymundo Larra�n Nesbitt
Hi Fleur You are welcome. If Police are seemingly dragging their heels on this matter maybe its time fo you to consider using the leverage of a Spanish lawyer to assist you. Btw I forgot to add that changing the door's locks is also coercion. It's also explained in my above article. Sincerely Raymundo Larra�n Nesbitt
Hi Raymundo, Thank you for your rapid response. Reading what you have said, I feel we fulfil the criteria for possession following a 10 year period, despite actually living continuously for 25 years. My main concern, is cost. Are there any guidelines laid down for legal fees for this type of procedure. Also, if acquisition was successful and title changed, would this represent a transfer where the authorities may apply taxes . A sale purchase situation wouldn�t exist but transfer would. Nowadays, everything revolves around costs, so before proceeding further it would be interesting to have an approximation of expenses to see if I can contemplate such an action. If valued, even in this down market, I believe the property could be worth, perhaps in the region of four to five hundred thousand euros. Thank you for your interest. B.J.
Hi Raymundo To answer your question. I purchased the land on which my house is built on private contract in 1984 in my own name. The parties to the selling side of the contract are today prominent business people of reliable character and the intermediary agent is still in business today. Prior to escritura for the land purchase an off-shore company was established in which I was the beneficial owner. This move was not done to create anonymity for me but was a recommended method of property ownership in the 1980�s. During the following years I was completely open about my connection with this company, communication with local as well as state authorities, including Tax Authorities, Foreign Investment Authorities, Local Town Hall, Sevillana, etc.etc. as I did then and continue to do today. A dispute arose between me and my administrators which could not be easily resolved; this resulted in non-communication from the early 1990�s until the present time. During this time of incommunicado my administrators have tried unsuccessfully to have me removed from what I consider, my own property. My wife and I have resided peacefully and continuously for almost 25 years with all bills and expenses arising in Spain being paid on time. Of course, the property remains registered in the name of my company but with only expired POA I have no authority now to transfer title and the chances of obtaining a new power is highly unlikely. By law, the identity of Beneficiaries of off-shore companies cannot be disclosed by administrators, nominees, trustees or the like. Only by Supreme Court order can identities be revealed and only in extremely serious cases. In my case the administrators are still active and still opposed to me and my family�s occupation � hence my query on acquisition by adverse possession (Usucapi�n). We have signed testament from our neighbours to verify our continuous occupation as decent, respectable members of our community, some neighbours having occupied their homes equally as long as we have, and in one case even longer. Good faith is evident. Just title can be derived from first purchase contract to verifiable evidence of incorporation of my company by the written documents of the acting lawyer. I hope this provides a deeper insight into my case upon which you can consider. Regards, B.J.
Hi BJ Just so you know, new Money Laundering provisions passed on earlier on this year now force company administrators, amongst others, to disclose who are the real and ultimate beneficiaries of opaque holding company structures i.e. offshore ones. Your case is different than what I initially thought then. I now believe you would comply with the requirements set forth in Art 1940 of the SCC. Our legal fees would be that of a litigation procedure. We can discuss further offline or online, at your choice. If it's the former write me an email to my attention: http://www.lawbird.com/services/contact Regards Raymundo Larra�n Nesbitt
Hi Raymundo, Thank you for your response. I haven�t got back to you earlier as I have been reviewing the various options and my own financial predicament. If, we do pursue the possibility of acquisition by adverse possession I will make contact with you as suggested via your direct email address or call to make an appointment. In the meantime you made mention of ( to quote your words) �new Money Laundering provisions passed on earlier this year now force company administrators, amongst others, to disclose who are the real and ultimate beneficiaries of opaque holding company structures i.e. offshore ones�. As disclosure by the administrators or nominees of my beneficial interest in my off-shore company would an enormous aid in proving my case, I have searched for information on this matter and I can find nothing. What, and who�s legislation should I be searching under ? I have searched under �new money laundering provisions 2010� both in English as well as Spanish and variations on this phrasing but find no references to the legal requirement of administrators to reveal identities of real and ultimate beneficiaries. I should like to check this legislation out if possible. Thanking you in advance of any information you can provide. Regards, B.J.
Hi Raymundo, Returning to my issue of Usucapi�n and your response dated 3rd August. Perhaps you can expand a little on what the actual procedure for Usucapi�n follows. Presumably it must be a court case or hearing of some sort before the judiciary and my claim would be one of seeking an order for recognition or granting of title under adverse possession. Presumably myself being the claimant , obviously I must produce evidence of just title and good faith both of which I feel I have enough to satisfy the legal criteria � but the question is � is the procedure one of reviewing all the available evidence in the presence of several judges, or a review board, does the procedure take place in a court room, locally or regionally and are the arguments, if any, of opposition taken into account even if the criteria is met satisfactorily before the law. I suppose what I am asking is if under Spanish law all criteria is met can the opposition�s arguments be disputed or even denied entry into the procedure. Because rightful title is being sought in compliance with Spanish law and if these legal conditions are met, opposition should not be a consideration factor � hence �adverse possession� and does the procedure follow a court room scenario. Thank you in advance for your considered opinion. Regards, B.J.
My parents have a property in spain which they let out via a rent to buy agreement which was supposed to be completed on 1st May. The tennants left the propery in February, having left unpaid rent and bills and have said they now do not wish to exercise their right to buy the property. They are blaming this on some damp in the basement which they have given us no opportunity to fix (if indeed there is a problem) and are now saying they wish to claim their 20,000� deposit back - do they have a case and will this be a costly process? Your help would be greatly appreciated.
Dear Patricia: I have been unable to pay my November rent because I Have been expecting (for two months now) a bank transfer. I paid my October rent in smaller amounts during the month. I have asked my landlords to use my deposit (it is an unfurninshed apartment) in the meantime. There is now 300 euros owing. I have said that I will either pay in full in early December (new date for transfer is now December 4th) or give notice to vacate on December 31st. On November 16th, I received two garbled e-mails giving me "notice" to vacate on December 15th. The first said that the apartment was rented from nthat date (for 6 months). The second contradicted the first and said the apartment had been "sold to a family member from the UK". I returned the e-mail restating my original agreement. Today, the following was dropped off at the gate of my urbanisation: Total arrears: 300 euros You have been given notice, in writing on the 16th November to VACATE the apartment on the 15th December 2011, all legal as you understand. We are not interested in youtr letters in which you clearly have been misadvised regarding the "legalities" you have stated. (I wrote to inform them that they could not simply take the law into their own hands - there have been previous threats and I live alone.) There follows a list of the "itinery": (I think they mean inventory!) all are appliances, and by the way, no inventory was ever given to me. What I find quite incredible is that attached is a tiny "article" from one of the local free newspapers and of four short paragraphs which says (in summary) the following: Landlords can now evict non-paying tenants in just 10 days. After a change in the eviction process, landlords will no longer have to take the case to a judge, a process which often took many months. They will now be able to get tenants out in 10 days after giving an official written warning. Etc. This, they claim in the letter is a statement regarding the "LAW" which was passed some months ago. They are also insisting that I must give them a date "in the next 10 days" for the apartment to be "checked". I am sure if this law could simply allow any landlord simply to evict a tenant owing 300 euros and who has made every attempt to pay up to now, it would be posted on the front page, not tucked into a tiny column somewhere inside a newspaper. There is nothing about this on the internet, I've read nothing about it, and even a friend who knows about these things says she knows nothing about it. Times are desperate, and I do sympathise with their difficulty (or did until the threats started), but this would mean thousands living on the street! Surely not? Can they get away with this? What happens if I stay put? Should I write a registered letter stating my intention to either pay (in full or at least part) or leave at the end of December as I have written above? Finally, at the gate there is also an Aviso from Sevillana which almost certainly means that they have not paid their electricity bills (all in their name). I have let them know it is there (two days now) but although they were clearly here this morning, they did not pick it up. I believe all the above is considered "coercion" and that criminal charges may be faced if I am left without electricity (for which I have paid on the date the bill was received every month without fail). Incidentally, in almost three years the rent has never been even a day late. We do not have a contract. The original signed contract stated that community fees would be paid by the landlords: they have never p�id despite a court order to do so: they owe over 7000 and my access has been severely restricted. I said I would sign a contract IF they would pay what they owed and my rights restored. They have not. Q: What can I do? Many, many thanks.
Hello Captain, If the rent was agreed as a short term rent or holiday rent, the Urban Rentals Regulations ( LAU ) are not to be considered in the determination of rights and obligations of the parties, but the signed agreement. Also, the situation is different if the contact was signed with the gentleman that passed away or with his son. In the first case, the fact that the landlords died does not change anything, unless he was the usufructuary of the property but not the owner. If he was the owner, the contract remains valid until the agreed date of expiration and this misty be respected by the heirs. However, if your landlord was a user, that is, he had the usufruct of the property, the contract would be terminated and the legitimate heirs could evict the tenant right away. I recommend you not to make any payment to the landlord�s son until he proves his title as heir or that he is the administrator of the inheritance. In the meantime, it is advisable that you to deposit the rent at the courts, that is, depositing the fund in the courts bank account, so you can prove your will to pay and not failing to meet your obligations. If the contract had been signed directly with the heir, the same is valid but it is important to determine the type of contact is it ( holiday or permanent dwelling ) so you know what are your rights and obligations (the conditions appearing in the contract or the LAU ). At this point, it is better that you ask a solicitor to check you rental contract to find out that information and advice on the course of action to be followed. Regards,
Hello Martin, I assume the property you are renting is located in Spain and that the person that is subletting the property is doing it without the owner�s consent. This means that you can scare her off telling her that if your deposit is not returned, you will notify the owner and the tax Office so she reacts. If this fails, you could take legal actions to cancel the verbal sublet agreement though ,depending on the amount of the deposit, it may not be worth it as this can cost you more than the due deposit. Regards,