The Housing Law reshapes the Spanish real estate market by introducing new obligations for major landlords. These changes impact rental agreements, including rent caps and the commitment to accept extraordinary lease extensions.
The LAU does not impose restrictions on additional guarantees in commercial leases in Spain, thus allowing the parties to negotiate the terms on a personalized basis.
In Spain, it is usual to sign an earnest money contract or “contrato de arras” as part of any real estate transaction. The figure of the arras or depostis, confirmatory, penal and penitential give legal security to the deal and reflect different levels of commitment.
The operation of holiday tourist rentals in Spain requires careful consideration of the existing restrictions. Public authorities, especially the Autonomous Communities and Town councils, and the communities of owners can impose obligations, limitations and prohibitions on these activities.
Although ownership has traditionally been the predominant form of housing tenure in Spain, the demand for rental accommodation is rapidly growing, giving rise to new models of rental property investment. Build to rent, rent to rent, coliving, and senior living are clear examples.
In Spain, commercial leases are not subject to strict regulations like residential leases, and it leaves a central role to the parties’ will when formalizing the corresponding contracts. However, the LAU contemplates some specific provisions worth considering.
On 25 May, Law 12/2023 was published in the Official State Gazette (BOE), introducing significant changes to the housing sector in Spain. Highlights include the removal of the Consumer Price Index (CPI) for annual rent reviews, rent control in stressed areas and modifications to eviction and foreclosure procedures, among others.
An owner who considers that a decision of the Board of Owners of the condominium owners’ association to which he belongs is detrimental to his interests or entails a severe detriment that he has no obligation to bear may challenge it through the courts.
The Spanish Horizontal Property Law provides condominium owners association (COA) with two specific legal actions against defaulting co-owners or nuisance occupants. One of them is the order for payment procedure.
The Spanish Horizontal Property Law provides for two specific actions for the condominium owners association in the event of nuisance or delinquent co-owners or occupants. One of them is the action for cessation.
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