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Lease agreement: typologies, rules and exceptions

9 OCTOBER 2021
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Dicas Casas para arrendar
How to make a lease agreement? What are the consequences of non-compliance? Learn all you need to know about lease agreements here.
Lease agreement: typologies, rules and exceptions
For some it can be a real headache, but writing a lease contract is no puzzle, and to prove it, we have summarized the most important information so that you can feel more oriented. Follow the draft that we suggest and comply with the main requirements of each type of contract.

Get to know the rules and also the exceptions and make renting a process without secrets for you.

RESIDENTIAL, COMMERCIAL AND RURAL LEASING AGREEMENT

The rental agreement, residential or not (for commercial purposes or rural exploration), is the document that establishes the rights and duties of the owner/landlord and the rights and duties of the tenant/tenant of the property.

Residential Lease Agreement

How to do it?

The lease agreement must be written on paper and made with three copies: one for the landlord, another for the tenant and the third must be delivered to the tax office within 30 days after the contract is made official by the parties.

The contract must be signed by all parties, including the guarantor, if any. The landlord has the duty to seal the contract, by paying stamp duty (which corresponds to 10% of the property's rent).

The contract must contain:
  • Identification of the parties (naturality, date of birth and marital status);
  • Identification and location of the leased property, or part thereof (street, fraction, locality and zip code);
  • Number and date of the habitation permit;
  • Value of the rent, deadline for payment and respective updating regime;
  • Date of conclusion of the contract
  • Duration of the contract;
  • Wage receipts of the tenant or IRS declaration;
  • Signature of the tenant or tenants.

Each of the parties may establish in the contract the terms and conditions they deem most appropriate, except with regard to matters regulated by law. Find out which ones.

Duration

One of the most important criteria when entering into a lease agreement is to establish a clause determining its duration.

According to the new urban lease regime (NRAU), lease agreements may be entered into for a fixed term or for an undetermined period.

For agreements entered into for a fixed term, the minimum duration imposed is of one year, although after the first renewal, it may be agreed that the lease will have an undetermined duration.

It should also be noted that there are exceptions to this rule - namely for contracts for non-permanent housing or for special transitory purposes (professional, training, educational or tourism reasons).

In the event of omission with regard to leases for residential purposes, the lease is assumed to have a duration of two years.

Termination

You should be aware that it is always possible to terminate a lease before the scheduled termination or renewal date, either by the landlord or by the tenant. For this to happen, it is sufficient that each party respects the notice periods indicated in the Civil Code.

Thus, there are legal deadlines to be met. Take note:

Termination by the tenant

According to Article 1098 of the Civil Code, the tenant can terminate the rental agreement under the following conditions:
  • If the agreed term of the contract is equal to or longer than 6 years, the tenant must give the landlord 120 days' notice;
  • If the term of the contract is equal to or greater than one year and less than 6 months, the notice must be 90 days;
  • If the term is 6 months or more and less than a year, the notice must be 60 days in advance;
  • If the term is less than 6 months, the notice must be one-third of the initial term of the contract.
  • If the notice is not given, the tenant must pay the outstanding rents for that period.

Termination by the landlord

Article 1097 of the Civil Code establishes the deadlines within which a contract may be terminated by the landlord:
  • If the initial term of the contract or its renewal is equal to or longer than 6 years, the landlord must give the tenant 240 days' notice;
  • If the initial term of the contract or of its renewal is equal to or greater than one year and less than 6 years, the notice must be 120 days;
  • If the initial term of the contract or its renewal is equal to or greater than 6 months and less than one year, the notice must be 60 days;
  • If the term of the contract is less than 6 months, the notice must be one third of the initial term of the contract or its renewal.

Eviction for non-compliance

If the tenant fails to pay rent for 3 months, he may receive a notice from the landlord to pay the rent in default. If you fail to do so within 3 months, the contract may be terminated and you may be evicted.

In addition, the landlord may also justify the tenants' departure in order to carry out construction works (in which case the tenant must be notified at least 6 months in advance of the date of eviction) and also because the house is needed to provide accommodation for himself or for his descendants to the first degree.

Transfer in the event of the tenant's death

In the event of the tenant's death, the lease is transferred to the following persons, in this order: spouse; person with whom the tenant lived in a non-marital partnership; ascendant living with the tenant for more than one year; child or step-child under one year of age, or who is a minor; child or step-child under 26 who is still studying; child or step-child who lived with the tenant for more than one year, disabled with a degree of handicap exceeding 60%.

Commercial lease agreement

The commercial, industrial or liberal profession lease agreement is included in the typology of non-housing agreements. In this case, there is great contractual freedom for both parties.

This type of contract differs from the business lease or tenancy agreement, since the former temporarily transfers the use of a property for a consideration, in order to carry out a commercial activity.

The latter temporarily assigns, for a consideration, the economic unit consisting of a certain commercial establishment, of which the enjoyment of the property where it is installed is a part.

What documents are required?

The contract must be printed out in triplicate, with one copy going to the landlord, another to the tenant, and another to be delivered to the tax office. A utilization license issued by the City Council less than 8 years ago is also required. The term of the contract is 5 years and the following documents are indispensable for its elaboration:
  • Citizen Card of the tenant, landlord and guarantor (if any);
  • Certificate of the Commercial Registry - if the parties are legal persons;
  • Certificate from the Land Registry of the content of the description and all inscriptions in effect, issued by the Land Registry Office;
  • Caderneta Predial (land registry book) or certificate of the content of the matrix article and the patrimonial value, issued and updated by the Finance Department;
  • Utilization license, issued by the City Hall.

Rural Lease Contract

The rural rental contract has as its object the leasing of rural properties for the purpose of agricultural or livestock exploration.

This type of lease covers the land and dwelling of the lessee, permanent non-forest vegetation (e.g. fruit trees) and buildings used for agricultural or livestock farming purposes (e.g. wine cellars, barns, stables, oil mills, haylofts).

What should not be missing in this type of contract

  • Full identification of the contracting parties (indicating their tax identification number and residence or head office);
  • Full identification of the property subject to the lease (the purpose for which it is intended, the amount of the rent and an indication of the date it was signed);

The landlord has 30 days, after signing the contract, to deliver the original to the tax office of his residence or head office.

Furthermore, it is also important to mention that the minimum term for this type of contract is 7 years and it can be renewed for an equal period if both parties agree. And unlike the housing lease contract, the rural lease contract is exempt from the payment of stamp duty.

If you are or will be a landlord or tenant, the tenancy agreement is a topic you are very interested in. Gather the most important information and make sure you don't miss any steps to ensure that the lease agreement serves the interests of both parties and complies with current legal regulations.

Source: Ekonomista

Topics
Dicas Casas para arrendar
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