Law 29/1994, of 24 November, of Urban Leases

Head of State "BOE" No. 282 of 25 November 1994

Last amended: 5 March 2019 Reference: BOE-A-1994-26003

JOHN CARLOS I

KING OF SPAIN

To all those who present it, and understand. Sabed: That the General Courts have approved and I come to sanction the following

Law.

PREAMBLE

1

The legal regime for urban leases is currently regulated by the recast text of the Urban Leases Act of 1964, approved by Decree 4104/1964 of 24 December.

The principles that inspired the reform of the lessor legislation carried out in 1964, according to the Motives Exhibition of Law 40/1964, were to temper the liberalizing movement of urban property in the circumstances. the country's economic and the demands of justice. However, the recast text did not reach its objectives of unlocking the situation of frozen incomes. In addition, the aforementioned text enshrines a regime of subrogations, both inter vivos and mortis causa, favorable to the interests of the lessee.

Both circumstances identified a regulatory framework which the practice has shown to be of little use to the use of the lessor.

In these circumstances, the Royal Decree-Law 2/1985 of 30 April on Economic Policy Measures introduced two amendments to the regulation of the urban leases scheme which have had a huge impact on the development of the economy. of this sector. These changes were the freedom for the transformation of homes in business premises and the freedom to agree the duration of the contract, removing the mandatory character of the forced extension in the contracts of urban leases.

The Royal Decree-Law 2/1985 has had mixed results. On the one hand, it has allowed the trend of the decline in the percentage of rented housing that was taking place in the early 1980s to stop, although it has not been able to substantially reverse the sign of the trend. On the other hand, however, it has generated enormous instability in the rental housing market by giving rise to a

of short-term contracts. This in turn has produced a very significant increase in income, which has been aggravated by its simultaneous in time with a period of rising prices in the real estate market.

Today, the market for urban leases in housing is characterized by the coexistence of two clearly differentiated situations. On the one hand, the contracts concluded under the Royal Decree-Law 2/1985, which represent approximately 20% of the total and are characterised by high incomes and a significant degree of occupational turnover as a result of their General annual duration. On the other hand, contracts concluded before the date of entry into force of Royal Decree-Law 2/1985. In general, these are contracts with non-high income and, in the case of contracts concluded before the Law of 1964, approximately 50 per 100 of the total, with income that can be described as non-economic.

The dysfunctions that this situation generates in the market are such that they have converted to the lease in an unattractive alternative in front of that of the acquisition in property in relation to the solution to the problem of the dwelling. In this sense, only an 18 per 100 of the total housing stock is in rent.

For this reason, the ultimate aim of the reform is that of helping to strengthen the market for urban leases as the basic piece of a housing policy oriented by the constitutional mandate enshrined in Article 47. recognition of the right of all Spaniards to enjoy decent and adequate housing.

The achievement of this objective requires a regulatory amendment which would make it possible to establish an appropriate balance in the performance of the parties, and although it is clear that the change in legislation itself is not a sufficient condition for increase the supply in this sector, if it is a necessary condition for this to occur.

The substantive regulation of the lease agreement must be based on a clear distinction between housing leases and those intended for any other use other than that of housing, in view of the fact that economic realities The underlying factors are substantially different and therefore worthy of dissimilar regulatory systems that echo that difference.

In this sense, while maintaining the tweeter nature of the regulation of housing leases, it is chosen in relation to those destined for other uses by an absolute regulation based on the free agreement of the parties.

In addition, the law contains a partial reform of the regulation of the leasing processes and the modification of the regime of the contracts currently in force.

2

The regulation of housing leases presents significant developments, mainly in relation to their duration. In this respect, it has been decided to set a minimum period of duration of the five-year contract, in order to understand that a period of these characteristics allows a certain stability for the family units that allows them to contemplate the lease as a valid alternative to the property. At the same time, it is not an excessive deadline that could be a brake on both private owners and business developers placing homes in this market.

This minimum period of time is based on the free trade agreement between the parties on the initial duration of the contract plus a system of compulsory annual carryovers up to a minimum of five years ' duration, if the initial agreement had has been for a shorter period.

A tacit extension mechanism is also introduced into the law, at least the five-year guarantee period, which gives rise to a new period of three years, which is also linked to a three-year period.

The recognition of the existence of situations requiring shorter periods of time has made the law provide for this possibility, although linked exclusively to the need, known at the time of the conclusion of the contract, to recover the use of the house leased for the home of the landlord himself.

The establishment of a time limit of limited duration allows to mitigate the impact that the institute of subrogations may have on the balance of the benefits. To the extent that the right of persons to continue in the use of rented housing is maintained only until the termination of the contractual period, it does not exist

The problem of maintaining this right in the mortis area is a cause for those people who have direct links with the lessee. The recognition of this right to the living "more uxorio" is remarkable.

In relation to the inter-living subrogations, only their prior written consent of the lessor is recognized. At the same time, a novelty is introduced in cases of judicial decisions which, in proceedings of nullity, separation or divorce, assign the housing to the non-titular spouse. In such cases, the right to continue in the use of the rented dwelling for the time to be deducted from the contract is recognised as "ex lege" to that spouse.

The income regime is built around the principle of the freedom of covenants between the parties for the determination of the initial income for both the new contracts and those that are maintained with already established tenants. This will ensure, where necessary, that the income from the contracts will allow to reflect the reality of the market, if this reality could not have been transferred to the income through the planned updates. This may be the case, since the rule establishes an income update mechanism linked to the percentage changes that the Consumer Price Index may experience in an annual period.

As far as the rights and obligations of the parties are concerned, the law broadly maintains the current regulation, without introducing any major new developments. Except for the establishment of a special provision for lessees affected by disabled persons or persons with disabilities in their capacity, they intend to make modifications to the leased land which will enable them to improve their use.

The right of preferential acquisition is also maintained in favour of the lessee for the alleged disposal of the rented dwelling during the term of the lease, even if it relates to market conditions, as it constitutes a an instrument that, without assuming a serious payment for the landlord, increases the tenant's chances of staying in the house.

Finally, as far as the formalisation of contracts is concerned, the law retains the freedom of the parties to opt for the oral or written form. At the same time, the possibility of all tenancies, whatever their duration, of accessing the Land Registry is expressly enshrined, trying, on the other hand, to enhance this possibility of access by means of the linking certain measures of promotion or benefit to the fact of registration. This fact not only contributes to strengthening the guarantees of the parties, but also increases the information available to the State, allowing the design and implementation of those measures that can contribute to the improvement of the regulatory and the practice of leases.

3

The law abandons the traditional distinction between housing leases and leases of business premises and assimilated to differentiate between housing leases, which are those dedicated to meeting the need for permanent housing. of the lessee, his or her dependent spouse or dependent children, and leases for uses other than that of housing, a category which encompasses the leases of second residence, seasonal leases, traditional business premises and those assimilated to these.

This new categorism is based on the idea of granting protective measures to the tenant only where the purpose of the lease is the satisfaction of the need for housing of the individual and his family, but not in other cases in the economic, recreational or administrative needs are met.

To this end, in the regulation of leases for use other than that of housing, the law chooses to leave to the free pact of the parties all the elements of the contract, setting up an extra regulation of the free pact that also allows a wide recourse to the Civil Code regime.

They are thus regulated, with an additional character of the express will of the landlord and tenant, the system of obligations of conservation and works, the right of preferential acquisition, the transfer and the subrogations mortis causa, although limited to the spouse and children of the tenant who continue the activity.

A novelty consisting of the right of the lessee to be compensated is introduced into this regulation when, in order to continue the lease, it must leave the premises in the course of the period provided for, provided that the landlord or a new tenant may benefit from the customer's customer's customer base, or alternatively, the costs of the transfer and the damages arising therefrom, when the lessee is obliged to transfer his or her activity.

4

The rental bond maintains its mandatory character, both in housing and in different use, fixing its amount in one or two income brackets, according to whether it is a housing lease or a different use. At the same time, the Autonomous Communities are allowed to have housing powers to regulate their compulsory deposit in favour of the Community itself, since the returns generated by these funds have been revealed as an important source of funding for regional housing policies, which is considered to be maintained.

5

In the regulation of the leasing processes, it is established that the jurisdiction to know about the disputes corresponds, in any case, to the Judge of First Instance of the place where the urban estate is located, excluding the possibility to modify the functional competence by way of express or tacit submission to a different Judge.

This does not preclude the possibility that the parties to the legal relationship may agree to the use of the arbitration procedure for the settlement of their disputes.

The processing of the leased processes is defended in the judgment of cognition, making explicit exception to the cases of application of the trial of eviction and of the verbal judgment when, in the latter case, actions to determine income or amounts to be paid to the lessee.

The conditions under which the lessee may be able to power the action in the evictions promoted by the lack of payment of amounts due under the leasing relationship are also regulated. This regulation significantly clarifies the possibilities of energy and rehabilitation contained in the recast text of 1964.

In the case of the accumulation of shares, the possibility of cumulation which assists the lessees when the actions exercised are based on common facts and directed against the lessees has been established, together with the traditional regulation. lessor. This is also permitted in the case of termination of the contract due to non-payment, the cumulative and simultaneous exercise of the action to resolve the contract and the claim of the amounts due.

Finally, and as a more significant novelty of the law in procedural matters, the regulation of the appeal in the field of cassation is established to understand that the matter, given its importance and the importance of the normative changes that it is It introduces, must be able to be the object of an elaborate case-law in the seat of the Supreme Court. The following are the most characteristic notes of the appeal: only the judgments given in the proceedings in the proceedings of the judgment of the Court of First Instance, provided that the judgments of the Court of Justice are the first and second instance are not in conformity, and the income of the contracts is below the limits that are given by law.

6

As regards the existing contracts for the entry into force of this law, those concluded under the Royal Decree-Law 2/1985 do not present a particular problem since it has been the free will of the parties which has determined the regime of the relationship in terms of duration and income. For this reason, these contracts will continue until their extinction under the same regime that they have so far been in. At that time, the new lease relationship that can be built on the farm will be subject to the new regulations. This regulation does not exempt contracts which,

(a) even if, at a later date than 9 May 1985, they have been concluded subject to the forcible extension procedure, as they derive from the free trade agreement between the parties.

As regards contracts concluded earlier, the law opts for a solution which attempts to combine the maximum possible simplicity with a balanced treatment of the different situations in which the parties to the conflict are. For this reason, an approach is introduced which maintains the criterion of differential treatment between the tenancies of housing and the business premises, granting more soft conditions for the change of the tenant of the dwelling than that of the local business.

Taking into account the harmful effects of the prolonged validity of the compulsory extension imposed by the Law of 1964, the need to limit the duration of this mandatory extension is addressed by restoring the temporality of the the tenant relationship in accordance with its own nature, but this amendment is made taking into account the social and economic effects of the measure taking into account the personal and family situation and the economic capacity of the lessees.

In this sense, the lease of houses is chosen by the total abolition of the inter-living subrogation, except for the derivative of judicial resolution in matrimonial proceedings, and for the gradual abolition of the rights of surrogacy. mortis causes the recast text of 1964 to recognize.

As this measure affects situations whose potential rights are different, tenant initial tenancies, first subrogation tenants and second subrogation tenants, the rule must provide answers appropriate for each of them. Hence the abolition of the subrogations is more gradual the greater the potential content of rights that the law contemplates for each assumption, from the general principle of keeping the current tenant and his spouse the right to continue in the use of the rented house until his death, where this right was recognized by the legislation of 1964.

As regards the income scheme, the law chooses to try to unblock the situation of frozen incomes. To this end, a review system is established for all contracts prior to 9 May 1985, which seeks to recover the non-impact of inflation from the date of the conclusion of the contract or since the last revision of the contract. legal, as appropriate. This revision does not occur immediately but gradually, increasing the number of years in which the total revision occurs in inverse function of the rent of the tenant, enabling the lessees of lower economic level to adapt their economies to the new reality.

In the case of low-income tenants, below two and a half times, three or three and a half times the minimum inter-professional wage according to the number of persons living in the rented house, the income review is excluded. the Government is being required to set up within one year of the entry into force of the law a mechanism of compensation of a fiscal nature for those lessors who have not been able, for the circumstances mentioned above to proceed to the updating of the income.

In addition, the landlords are granted the right to enjoy the benefits of the property tax, the property tax, the costs of conservation of the rented estate and the cost of the services and supplies of (i) the provision of the rental housing, in the latter three cases, by imputation of its amounts to the lessees.

In the case of leases of business premises, it has been chosen to articulate a timetable for the temporary resolution of these contracts, although distinguishing between the leases in which the lessee is a natural person of those in the it is a legal person, assuming greater economic solvency where the organizational structure is more complex.

This is why, although on a limited basis, the rights of surrogacy are caused in the first case, guaranteeing the family group linked to the development of the activity, a minimum period of 20 years, which may be exceeded while the tenant and your spouse live and continue the exercise of the activity that is developing at the local.

For the leases of legal persons, the time limits for resolution assessed are set, between five and twenty years, depending on the nature and volume of the activity carried out on the leased premises, setting a short duration of time. for those

leases in which activities with an economic potential are developed such that they place the holders of these contracts in positions of balance in relation to the lessors in the negotiation of new lease conditions.

As for the income paid in these contracts, the revised scheme for housing leases is reproduced, temporarily graduating the pace of the revision according to the categories above.

In order to promote the continuity of the tenants, the law regulates a new creation figure which is the right of preferential leasing, which grants the lessee a preferential right to continue in the use of the local leased at the time of the termination of the contract, against any third party under market conditions.

Also, an indemnity right is provided in case of not continuing in the use of the premises leased when another person, the owner or a new tenant, can benefit from the clientele generated by the activity of the old tenant.

In terms of the leases assimilated, both to the tenant and to the local business, they are given a similar treatment to the leases of local business, in terms of duration and income regime.

TITLE I

Scope of the law

Article 1. Scope of application. This law establishes the legal regime applicable to land leases

urban areas which are intended for housing or for uses other than housing.

Article 2. Housing lease. 1. Housing lease is considered to be the lease that falls on a

living building whose primary purpose is to satisfy the tenant's permanent housing need.

2. The rules governing the tenancy of housing shall also apply to furniture, storage rooms, garage spaces and any other premises, leased spaces or services provided as accessories of the estate by the same landlord.

Article 3. Lease for use other than housing. 1. Lease for use other than that of the dwelling is considered

which, by receding on a building, has as its primary destination a different one from the one established in the previous article.

2. In particular, the leases of urban estates held per season, whether this summer or any other, will be considered, and those held for the purpose of exercising an industrial, commercial, artisanal, professional activity at the farm, recreational, care, cultural or teaching, whatever the people who celebrate them.

Article 4. Applicable regime. 1. Leases regulated in this Law shall be subject to mandatory

the provisions of Titles I and IV thereof and the provisions of the following paragraphs of this Article.

2. By respecting the provisions of the previous paragraph, the housing leases shall be governed by the covenants, clauses and conditions determined by the will of the parties, within the framework of the provisions of Title II of this Law and, In the case of the Civil Code.

Except for housing leases, the area of which is more than 300 square metres or where the initial annual calculation of income exceeds 5,5 times the minimum inter-professional salary in annual accounts and the lease corresponds to the whole of the dwelling. These leases will be governed by the will of

the parties, in their absence, by virtue of the provisions of Title II of this Law and, in an additional manner, by the provisions of the Civil Code.

3. Without prejudice to paragraph 1, leases for use other than that of housing are governed by the will of the parties, in their absence, by the provisions of Title III of this Law and, in an additional manner, by the provisions of the Civil Code.

4. The exclusion of the application of the provisions of this law, where possible, shall be expressed in an express manner with respect to each of them.

5. The parties may agree to submit to mediation or arbitration of disputes which by their nature can be resolved through these forms of conflict resolution, in accordance with the provisions of the legislation of the mediation in civil and commercial matters and arbitration.

6. The parties may indicate an electronic address for the purposes of making the notifications provided for in this law, provided that the authenticity of the communication and its content is guaranteed and that the reference is made to the reception and the moment they were made.

Article 5. Leases excluded. They are excluded from the scope of this law:

(a) the use of the dwellings which the gatekeepers, guards, employees, employees and officials have assigned to them for the purpose of the charge they perform or the service they provide.

(b) The use of military dwellings, whatever their qualification and status, shall be governed by the provisions of their specific legislation.

c) The contracts in which, renting an estate with house-room, is the agricultural, livestock or forestry use of the predium the primary purpose of the lease. These contracts shall be governed by the provisions of the legislation applicable on rustic leases.

(d) the use of university housing, when these have been expressly qualified as such by the University that owns or is responsible for them, which are assigned to the students enrolled in the corresponding University and the teaching and administration staff and services dependent on it, for the link established between each of them and the respective University, which will be the responsibility of each case for the establishment of the rules to be submitted to them. use.

(e) the temporary assignment of the use of the whole of a furnished and equipped housing under conditions of immediate use, marketed or promoted in tourist supply channels or by any other means of marketing or promotion, and profit-making, where it is subject to a specific scheme, derived from its sectoral tourism rules.

TITLE II

Of the housing leases

CHAPTER I

General rules

Article 6. Nature of the rules. They shall be null and void, and shall be without prejudice to the provisions of the

of the lessee or subtenant the rules of this Title, except in cases where the rule itself expressly authorizes it.

Article 7. Housing lease condition. The housing lease will not lose this condition even if the tenant does not have

on the estate leased your permanent dwelling, provided that in it you inhabit your spouse not legally separated or in fact, or your dependent children.

Article 8. Assignment of the contract and sublease. 1. The contract may not be given by the tenant without the written consent of the

lessor. In the case of disposal, the transferee shall be subrogated to the position of the transferor against the lessor.

2. The rented dwelling may only be sublet in part and after written consent of the lessor.

The sublease shall be governed by the provisions of this Title for the lease where the part of the sub-leased estate is intended for the subtenant for the purpose specified in Article 2.1. If this condition is not given, it will be governed by the agreement between the parties.

The right of the subtenant shall, in any case, be extinguished when it is done by the lessee.

The price of the sublease may in no case exceed the price of the lease.

CHAPTER II

Of the duration of the contract

Article 9. Minimum time limit. 1. The duration of the lease shall be freely agreed by the parties. If it's out

less than five years, or less than seven years if the lessor is a legal person, when the date of expiry of the contract is due, the contract shall be extended by annual instalments until the lease reaches a minimum duration of five years. years, or seven years if the lessor is a legal person, unless the tenant manifests the lessor, thirty days in advance at least to the date of termination of the contract or any of the extensions, his or her will not renew.

The period shall begin to be counted from the date of the contract or from the place of the building at the disposal of the lessee if it is later. The lessee shall be responsible for proof of the date of making available.

2. Leases for which there is no fixed term of duration or an indefinite period shall be deemed to have been concluded for one year, without prejudice to the right of annual extension for the lessee in the terms resulting from the preceding paragraph.

3. After the first year of the term of the contract and provided that the lessor is a natural person, the contract shall not be extended when, at the time of its conclusion, it has been recorded in the contract, in an express manner, the need for the landlord to occupy the rented dwelling before the five-year period for permanent housing for himself or his relatives in the first degree of consanguinity or for adoption or for his spouse in the cases of a firm sentence of separation, divorce or marriage annulment.

In order to exercise this power to recover the property, the lessor must inform the tenant that he has the need for the rented dwelling, specifying the cause or causes among those provided for in the preceding paragraph, at least two months after prior to the date on which the dwelling is to be required and the tenant shall be obliged to deliver the leased property within that period if the parties do not reach a different agreement.

If three months after the termination of the contract or, where applicable, the effective eviction of the house, the landlord or his relatives in the first degree of consanguinity or by adoption or his/her spouse have not proceeded in the cases of A final judgment of separation, divorce or marriage annulment to occupy is in itself, as the case may be, the lessee may choose, within thirty days, to be spare in the use and enjoyment of the dwelling rented for a new period of up to five years, respecting, in

Other, the contractual conditions existing at the time of the extinction, with compensation of the expenses that the eviction of the house would have assumed until the moment of the reoccupation, or to be compensated for an amount equivalent to a For each year to be completed until the end of five years, unless the occupation has not taken place due to force majeure, the impediment caused by those events expressly mentioned in standard of the Law range to which the force majeure is attributed, or others which could not have been foreseen; or which, foreseen, were inevitable.

Article 10. Extension of the contract. 1. If the expiration date of the contract or any of its carryovers, a

at least five years of the duration of that period, or seven years if the lessor was a legal person, none of the parties would have notified the other, at least four months in advance of that date in the case of the lessor and the less than two months in advance in the case of the lessee, his intention not to renew it, the contract shall be extended by annual instalments up to a maximum of three years, unless the lessee manifests the lessor with one month of prior to the date of termination of any of the annuities, his will not to renew the contract.

2. The contract extended shall continue to apply to the legal and conventional arrangements to which it was subject.

Article 11. Withdrawal of the contract. The lessee may withdraw from the lease, once they have

at least six months, provided that it is communicated to the lessor at least 30 days in advance. The parties may agree on the contract which, in the event of withdrawal, the tenant must indemnify the landlord with an amount equal to a monthly income in force for each year of the contract to be fulfilled. The periods of time less than one year shall give rise to the proportional share of the allowance.

Article 12. Withdrawal and expiration in the case of marriage or cohabitation of the tenant.

1. If the lessee demonstrates his or her wish not to renew the contract or to withdraw the contract, without the consent of the spouse who lived with the lessee, the lease may continue for the benefit of that spouse.

2. For these purposes, the lessor may require the spouse of the lessee to express his or her will in this respect.

The lease shall be terminated if the spouse does not reply within 15 days of the date of the application. The spouse must pay the corresponding income up to the termination of the contract, if the contract is not already paid.

3. If the tenant leaves the house without express withdrawal or no renewal, the lease may continue for the benefit of the spouse who lived with him provided that within one month of such abandonment, the lessor receives written notification from the spouse stating his/her willingness to be a tenant.

If the contract is extinguished for lack of notification, the spouse shall be obliged to pay the rent for that month.

4. The provisions of the foregoing paragraphs shall also apply to the person who has been living with the lessee permanently in the same relationship of affectivity to that of the spouse, regardless of his or her orientation. during, at least, the two years prior to the withdrawal or abandonment, except that they have had offspring in common, in which case the mere coexistence is sufficient.

Article 13. Resolution of the landlord's right. 1. If during the first five years of the contract, or seven years if the

the landlord is a legal person, the right of the landlord will be resolved by the exercise of a conventional retraction, the opening of a replacement would be

The tenant shall have the right, in any case, to continue in the lease until five years or seven years have been fulfilled. respectively, without prejudice to the power of non-renewal provided for in Article 9.1.

In contracts of agreed duration of more than five years, or seven years if the lessor was a legal person, if, after the first five years of the contract, or the first seven years if the lessor was a legal person, the right of the lessor shall be settled by any of the circumstances referred to in the preceding paragraph, the lease shall be extinguished. It is excepted that the lease agreement has entered into the Land Registry prior to the determining rights of the resolution of the landlord's right. In this case, the lease will continue for the agreed duration.

2. The leases granted by usufruttuario, shallower and all those with a similar right of enjoyment over the building, shall be extinguished at the end of the right of the lessor, in addition to the other causes of extinction resulting from the provisions in this law.

3. It shall last five years for the lease of the property of the tenant to have concluded in good faith with the person who appears as the owner of the property in the Land Registry, or who appears to be the owner of the property under a state of affairs whose creation is attributable to the real owner, without prejudice to the right of non-renewal referred to in Article 9.1, unless the owner is a legal person, in which case they shall last for seven years.

Article 14. Disposal of the rented house. The acquirer of a rented dwelling shall be subrogated to the rights and

obligations of the lessor during the first five years of the term of the contract, or seven years if the previous landlord is a legal person, even if the requirements of Article 34 of the Mortgage Law are met.

If the duration agreed for is more than five years, or more than seven years if the previous landlord is a legal person, the acquirer shall be subrogated for the entire duration agreed, unless the requirements of Article 34 are met. of the Mortgage Law. In this case, the acquirer shall only bear the lease for the period of five years, or seven years in the case of a legal person, for the period of five years, and the tenant shall compensate the lessee with an amount equivalent to a monthly income allowance in force for each year of the contract which, exceeding the above five-year period, or seven years if the previous landlord was a legal person, is still to be satisfied.

Where the parties have stipulated that the sale of the dwelling shall terminate the lease, the acquirer shall only bear the lease for the duration of the five-year period, or seven years if the lessor was a legal person.

Article 15. Separation, divorce or nullity of the tenant's marriage. 1. In the cases of marriage, judicial separation or divorce of the tenant,

the non-tenant spouse may continue in the use of the rented accommodation where it is attributed to him in accordance with the provisions of the civil legislation that is applicable. The spouse to whom the use of the rented dwelling has been attributed permanently or within a period exceeding the term to be fulfilled by the lease shall become the holder of the contract.

2. The will of the spouse to continue in the use of the dwelling shall be communicated to the lessor within two months after the corresponding judicial decision has been notified, accompanying a copy of that judicial decision or the part of the the same one that affects the use of the dwelling.

Article 16. Death of the tenant. 1. In the event of the death of the lessee, they may be subrogated in the contract:

(a) The spouse of the lessee who at the time of death convivied with him. (b) The person who has been living with the lessee permanently

in the same relationship of affectivity to that of the spouse, irrespective of their sexual orientation, during at least the two years preceding the death, unless they have had offspring in common, in which case the mere cohabitation.

c) The descendants of the tenant who at the time of his death were subject to his or her parental rights or guardianship, or had habitually lived with him during the previous two years.

(d) the ascendients of the lessee who have habitually lived with him during the two years preceding his death.

(e) The lessee's siblings in whom the circumstance provided for in the preceding letter is present.

(f) Persons other than those mentioned in previous letters suffering a disability equal to or greater than 65 per 100, provided that they have a kinship relationship to the third degree of collateral with the lessee and have lived with the lessee during the two years prior to death.

If none of these persons were to exist at the time of the tenant's death, the lease shall be extinguished.

2. If several of the above persons exist, in the absence of unanimous agreement on who of them shall be the beneficiary of the subrogation, the order of precedence established in the preceding paragraph shall be governed, except where the septuagenarian parents shall be preferred to descendants. Among the descendants and among the ascendants, he will have a preference the nearest to the degree, and among the brothers, the double bond on the half brother.

Cases of equality will be resolved in favour of those who have a disability equal to or greater than 65 per 100; in the absence of such a situation, of those who have greater family burdens and, ultimately, in favour of the lower-aged descendant, the Older parent or younger sibling.

3. The lease shall be extinguished if, within three months of the tenant's death, the landlord is not notified in writing of the fact of death, with a certificate of death, and of the identity of the subrogate, indicating his or her relationship with the deceased and offering, where appropriate, a test principle that he complies with the legal requirements to be subrogated. If the extinction occurs, all those who may succeed the lessee, except those who renounce their choice by notifying the landlord in writing within the month following the death, shall be jointly and severally liable for payment of the rent. of those three months.

If the lessor receives in time and forms several notifications whose submitters hold their status as beneficiaries of the subrogation, the lessor may consider them to be in solidarity with the lessee's own obligations, while maintain their claim to be subrogated.

4. In leases of an initial duration of more than five years, or seven years if the lessor is a legal person, the parties may agree that there is no right of subrogation in the event of the death of the lessee, where the lessee takes place after the first five years of the lease, or the first seven years if the lessor is a legal person, or the lease is extinguished at five years of age when the death occurred earlier, or Seven years if the lessor is a legal person. In any event, this waiver of the right of subrogation may not be agreed if persons who are entitled to exercise such right under the provisions of paragraph 1 of this Article are in a situation of particular vulnerability and affect minors, persons with disabilities, or persons over the age of 65.

CHAPTER III

Of the income

Article 17. Determination of income. 1. The rent shall be the one freely stipulated by the parties. 2. Unless otherwise agreed, the payment of the income shall be monthly and shall be made in

the first seven days of the month. In no case may the lessor require the advance payment of more than one monthly income.

3. The payment shall be made at the place and by the procedure to be agreed by the parties or, failing that, in cash and in the rented accommodation.

4. The lessor shall be obliged to deliver to the tenant receipt of the payment, unless it has been agreed that it is carried out by means of procedures that demonstrate the effective fulfilment of the obligation of payment by the lessee.

The receipt or supporting document to replace it shall contain separately the amounts paid for the various concepts of which the whole payment is made up and, specifically, the income in force.

If the lessor does not deliver the receipt, all expenses arising from the tenant shall be taken from his account to record the payment.

5. In the case of lease agreements, the parties may freely agree that the obligation to pay the rent may be replaced in whole or in part by the tenant's commitment to reform or rehabilitate the lease. building on agreed terms and conditions. At the end of the lease, the lessee may in no case ask for additional compensation for the cost of the works carried out in the building. Failure by the lessee to perform the works in the agreed terms and conditions may be the cause of the termination of the lease and the provisions of Article 23 (2) shall apply.

Article 18. Income update. 1. During the term of the contract, the rent may only be updated by the lessor

or the lessee on the date on which the term of the contract is enforced, in the terms agreed upon by the parties. In the absence of an express pact, no rent update will be applied to the contracts.

In the case of an express agreement between the parties on any mechanism for updating monetary values that does not detail the benchmark index or methodology, the income shall be updated for each annuity by reference to the annual variation of the Index of The Competitiveness Guarantee on the date of each update, taking as the reference month for the update the one that corresponds to the last index that was published on the date of the contract update.

In any event, the increase produced as a result of the annual income update may not exceed the result of applying the percentage change experienced by the Consumer Price Index to the date of each update, taking as reference month for the update corresponding to the last index that was published on the contract update date.

2. The updated income shall be payable to the lessee from the month following the month in which the interested party notifies the other party in writing, expressing the percentage of alteration applied and accompanying, if the tenant so requires, the timely certification of the National Statistics Institute.

The notification made by note on receipt of the monthly payment of the preceding payment shall be valid.

Article 19. Increase in income from improvements. 1. The realization by the landlord of works of improvement, after five years of

duration of the contract, or seven years if the lessor is a legal person, shall entitle him, unless otherwise agreed, to raise the annual income in the amount resulting from the application to the capital invested in the improvement, the legal interest rate of the the time of termination of

the works increased by three points, without it being able to exceed the increase of twenty per cent of the income in force at that time.

For the calculation of the capital invested, the public subsidies obtained for the construction of the work must be discounted.

2. Where the improvement affects several estates of a building under horizontal ownership, the lessor shall share the capital invested proportionally among all of them, applying, for that purpose, the participation shares corresponding to the each of them.

In the case of buildings that are not in horizontal ownership, the capital invested will be distributed proportionally among the farms affected by agreement between the landlord and the tenant. In the absence of agreement, it will be divided proportionally according to the area of the leased farm.

3. The increase in income shall take place from the month following the month in which the works have been completed, the lessor notifies the lessee in writing of the amount of the rent, detailing the calculations leading to his determination and providing copies of the documents resulting from the cost of the works carried out.

4. Without prejudice to the provisions of the foregoing paragraphs and the compensation provided for under Article 22, at any time since the beginning of the lease term and after agreement between the landlord and the lessee, works to improve the rental housing and to increase the rental of the contract may be carried out without the interruption of the period of compulsory extension laid down in Article 9 or of the tacit extension referred to in Article 10 of this Law, or a new beginning of the computation of such deadlines. In any event, the scope of the improvement works must go beyond the maintenance of the duty of conservation by the landlord referred to in Article 21 of this Law.

Article 20. General and individual service expenses. 1. The parties may agree that the general expenses for the appropriate maintenance

the property, its services, taxes, charges and liabilities that are not susceptible to individualization and that correspond to the rented dwelling or its accessories, are the tenant's responsibility.

In buildings under horizontal ownership such expenditure shall be those corresponding to the farm leased according to its share of the holding.

In buildings which are not on a horizontal property basis, such expenditure shall be those allocated to the farm leased on the basis of its area.

For its validity, this agreement must be entered in writing and determine the annual amount of such expenditure at the date of the contract. The agreement concerning taxes shall not affect the administration.

The costs of property management and the formalisation of the contract shall be borne by the lessor, where he is a legal person.

2. During the first five years of the term of the contract, or during the first seven years if the lessor is a legal person, the sum that the lessee has to pay for the concept referred to in the preceding paragraph, with the exception of Taxes may be increased only, by agreement of the parties, annually, and never in a percentage higher than twice the rate of the increase in income as provided for in Article 18 (1).

3. The costs of services with which the leased property is counted by means of equipment shall in any case be the case of the tenant's account.

4. The payment of the expenditure referred to in this Article shall be credited in the manner provided for in Article 17.4.

CHAPTER IV

Of the rights and obligations of the parties

Article 21. Housing conservation. 1. The lessor is obliged to make, without the right to raise the rent, all the

repairs that are necessary to preserve housing in the conditions of habitability to serve the agreed use, except where the deterioration of the repair is attributable to the lessee in accordance with the provisions of the Articles 1,563 and 1,564 of the Civil Code.

The repair obligation has its limit on the destruction of the dwelling due to the non-imputable cause of the lessor. To this end, the provisions of Article 28 shall apply.

2. Where the execution of a conservation work cannot reasonably be deferred until the conclusion of the lease, the lessee shall be obliged to bear it, even if it is very annoying or during which it is deprived of a part of the dwelling.

If the work lasts for more than 20 days, the income shall be reduced in proportion to the part of the dwelling of which the tenant is deprived.

3. The lessee shall inform the lessor, as soon as possible, of the need for the repairs referred to in paragraph 1 of this Article, whose sole effects shall be to provide the lessor with direct verification, by whether or by the technicians he designates, of the state of the dwelling. At all times, and after communication to the lessor, you may make those that are urgent to avoid imminent damage or serious discomfort, and to immediately require your amount from the lessor.

4. Small repairs requiring wear and tear for the ordinary use of the dwelling shall be borne by the tenant.

Article 22. Works of improvement. 1. The lessee shall be obliged to bear the performance by the landlord of works of

an improvement whose execution cannot reasonably be deferred until the conclusion of the lease.

2. The lessor who intends to carry out such works shall notify the lessee in writing, at least three months in advance, of its nature, beginning, duration and foreseeable cost. Within one month of such notification, the lessee may withdraw from the contract unless the works do not affect or otherwise affect the rented dwelling. The lease shall be extinguished within two months of the withdrawal, during which time the works may not commence.

3. The lessee who supports the works shall be entitled to a reduction of the income in proportion to the part of the dwelling from which he is deprived because of those, as well as to the compensation of the expenses that the works require to carry out.

Article 23. Works by the tenant. 1. The tenant may not perform without the consent of the lessor, expressed by

in writing, works modifying the configuration of the dwelling or the accessories referred to in Article 2 (2). In no case shall the lessee be able to carry out works that cause a reduction in the stability or security of the dwelling.

2. Without prejudice to the right to terminate the contract, the lessor who has not authorized the performance of the works may require, upon conclusion of the contract, that the lessee shall restore matters to the previous state or retain the modification. carried out, without the latter being able to claim compensation.

If, in spite of the provisions of paragraph 1 of this Article, the lessee has carried out works which have led to a reduction in the stability of the building or the security of the dwelling or its accessories, the lessor may immediately require the tenant to replace the items to the previous state.

Article 24. Tenants with disabilities. 1. The lessee may, after written notification to the lessor, carry out

housing those works or actions necessary to enable it to be used properly and in accordance with disability or at the age of more than seventy years, both by the renter himself or by his spouse, by the person with whom he/she lives permanent in the same relationship of affectivity, regardless of their sexual orientation, or of their relatives who with one of them live permanently, provided that they do not affect the building's common elements or services or cause a decrease in its stability or safety.

2. The lessee shall be obliged, at the end of the contract, to replace the dwelling with the previous state, if required by the lessor.

Article 25. Right of preferential acquisition. 1. In the case of the sale of the rented house, the lessee shall have the right to

preferential acquisition of the same, under the conditions laid down in the following paragraphs.

2. The lessee may exercise a right of tanteo on the leased property within thirty calendar days, from the next one in which the decision to sell the leased property, the price and the other, is notified in a feisty form. essential conditions of the transmission.

The effects of the notification prevented in the preceding paragraph shall expire on the one hundred and eighty calendar days following the notification.

3. In the case referred to in the preceding paragraph, the lessee may exercise the right of retraction, subject to the provisions of Article 1,518 of the Civil Code, when the notification has not been made to him or has been omitted from the any of the conditions required, as well as when the actual price of the sale or less onerous its remaining essential conditions is lower. The right of retraction shall lapse to the thirty calendar days, counted from the following to the notification which in the form of the purchaser shall make the purchaser to the lessee of the essential conditions in which the sale was made, by means of copy of the document or document in which it is formalized.

4. The tenant's right of tanteum or retract shall take precedence over any other similar right, except for the retract recognized to the owner of the dwelling or the conventional one that was recorded in the Land Registry the lease agreement is concluded.

5. To register in the Land Registry the titles of sale of rented dwellings shall be justified, in their respective cases, the notifications prevented in the previous paragraphs, with the requirements in them required. When the house sold was not leased, so that the acquisition would be registered, the seller must declare it in writing, under the penalty of falsehood in a public document.

6. Where the sale falls, in addition to the rented dwelling, on the other objects rented as accessories of the dwelling by the same landlord as referred to in Article 3, the tenant may not exercise the rights of acquisition preferred only on housing.

7. There shall be no place for the rights of tanteo or retract when the rented dwelling is sold in conjunction with the other dwellings or premises owned by the lessor that are part of the same building or when they are sold together by different owners to the same buyer all the floors and premises of the building. In such cases, the legislation on housing may establish the right of tanteum and retract, in respect of the whole of the building, in favour of the body designated by the competent administration in the field of housing, resulting from the application of (a) the provisions of paragraphs 1 and 2 of this Article shall be taken into account.

If there is only one dwelling in the house, the tenant will have the right of the right and the retraction provided for in this article.

8. Notwithstanding the foregoing paragraphs, the parties may agree to the renter's waiver of the right of preferential acquisition.

In cases where such a waiver has been agreed, the lessor shall inform the tenant of his intention to sell the property at least thirty days in advance of the date of completion of the contract of sale.

CHAPTER V

Of the suspension, resolution and termination of the contract

Article 26. Housing habitability. Where the execution in the dwelling is leased from works of preservation or works

agreed by a competent authority to render it uninhabitable, the lessee shall have the option of suspending or withdrawing the contract without any compensation.

The suspension of the contract will entail, until the completion of the works, the cessation of the contract period and the suspension of the obligation to pay the rent.

Article 27. Failure to fulfil obligations. 1. Non-compliance by any of the parties to the obligations resulting from the

the contract shall entitle the party who has fulfilled his or her own to require the fulfilment of the obligation or to promote the termination of the contract in accordance with the provisions of Article 1.124 of the Civil Code.

2. In addition, the lessor may terminate the contract in full for the following reasons:

(a) the non-payment of the rent or, where appropriate, any of the amounts the payment has assumed or corresponds to the lessee.

(b) the non-payment of the amount of the security or its update. (c) the subtitle or the non-consensual transfer. d) The performance of damages caused dolously on the farm or of non-consensual works

by the lessor when the consent of the landlord is necessary. (e) When in the house there are disturbing, unhealthy, noxious activities,

dangerous or illicit. (f) Where the dwelling is no longer intended to be of primary concern to the

the permanent need for housing of the lessee or who actually came under it in accordance with the provisions of Article 7.

3. Similarly, the lessee may terminate the contract for the following reasons:

(a) the non-performance by the landlord of the repairs referred to in Article 21. (b) the de facto or de jure disturbance of the lessor in the use of the

housing.

4. In the case of leases of urban land registered in the Land Registry, if the contract has been stipulated that the lease will be settled for non-payment of the rent and must in such case be immediately returned property to the landlord, the resolution shall take place in full right once the lessor has required a judicial or notarized tenant at the address designated for the purpose in the registration, urging him to pay or comply, and this does not replied to the requirement within the following ten working days, or is accepting the decision of full right, all by means of the same judge or notary who made the request.

The title provided to the registration procedure, together with the copy of the order act, which is the result of the notification and which has not been answered by the required payment or which has been answered by accepting the full resolution, shall be sufficient title to practice the cancellation of the lease in the Land Registry.

If there are any subsequent charges on the lease, it shall also be necessary for its cancellation to justify the notification of the holders of the lease, at the registered office of the Registry, and to prove the consignment in their favour. before the same notary, the bond provided by the lessee.

Article 28. Extinction of the lease. The lease will be extinguished, in addition to the other causes

referred to in this Title, for the following:

a) For the loss of the estate leased for cause not attributable to the lessor. (b) The final declaration of ruin agreed by the competent authority.

TITLE III

Of leases for use other than that of housing

Article 29. Disposal of the leased land. The acquirer of the leased estate shall be subrogated to the rights and obligations

of the lessor, unless the requirements of Article 34 of the Mortgage Law are met in the acquirer.

Article 30. Conservation, improvement and works of the lessee. The provisions of Articles 21, 22, 23 and 26 of this Law shall also apply to the

leases covered by this Title. The provisions of Article 19 shall also apply from the beginning of the lease.

Article 31. Right of preferential acquisition. The provisions of Article 25 of this Law shall apply to leases

which regulates this Title.

Article 32. Assignment of the contract and sublease. 1. When a business or professional activity is carried out on the leased farm, the

lessee may sublease the farm or yield the lease without the need for the landlord's consent.

2. The lessor is entitled to an income increase of 10 per 100 of the income in force in the event of a partial sublease, and of the 20 in the case of the sale of the contract or the total sublease of the leased property.

3. The change in the person of the tenant shall not be deemed to be transferred as a result of the merger, transformation or division of the tenant company, but the landlord shall be entitled to the increase in the income provided for in the preceding paragraph.

4. Both the transfer and the sublease must be notified in a manner that is to the landlord within one month of the date of the agreement.

Article 33. Death of the tenant. In the event of the death of the lessee, where an activity is carried out at the premises

business or professional, the heir or legal person continuing the exercise of the activity may be subrogated to the rights and obligations of the lessee until the termination of the contract.

The subrogation must be notified in writing to the lessor within two months of the date of the tenant's death.

Article 34. Compensation to the lessee. The extinction by the conventional term of the lease of an estate in

For the last five years a commercial sale to the public has been carried out, it shall give the tenant the right to an indemnity in charge of the lessor, provided that the lessee has indicated four months of in advance of the expiry of the period of time its willingness to renew the contract for a minimum of five more years and for a market income. A market rental shall be deemed to have the effect of agreeing on the parties; in the absence of a pact, the party shall determine the arbitrator appointed by the parties.

The amount of the allowance shall be determined as follows:

1. If the lessee starts in the same municipality within six months of the end of the lease, the exercise of the same activity to which he is engaged shall comprise the expenses of the transfer and the (a) the loss of customers ' loss of customers compared to the previous one, calculated as compared to the previous six months of the new activity.

2. If the lessee starts within six months of the termination of the lease a different activity or does not start any activity, and the lessor or a third party develop on the farm within the same period the same activity or an end to the one developed by the lessee, the compensation shall be a monthly payment of the duration of the contract, with a maximum of eighteen monthly payments.

Activities typically eligible to benefit are considered to be related, but only partly to the customers who have been affected by the activity of the lessee.

In the event of a lack of agreement between the parties on the amount of the compensation, the same shall be fixed by the arbitrator appointed by them.

Article 35. Full resolution. The lessor may terminate the contract in full for the reasons provided for in the

Article 27 (2) (a), (b), (d) and (e) and the transfer or sublease of the premises in breach of the provisions of Article 32.

TITLE IV

Common provisions

Article 36. Bail. 1. The requirement and the provision of security shall be compulsory for the conclusion of the contract.

cash in amount equivalent to a monthly lease of income and two in the lease for use other than that of the dwelling.

2. During the first five years of the contract, or during the first seven years if the landlord is a legal person, the security shall not be subject to updating. But each time the lease is extended, the lessor may require the bond to be increased, or the tenant to decrease, to be equal to one or two monthly income brackets, as applicable, at the time of the extension.

3. The release of the security during the period of time in which the agreed term for the lease exceeds five years, or seven years if the landlord is a legal person, shall be governed by the provisions of that effect by the parties. In the absence of a specific pact, the agreed upon update of the income will be presumed dear also for the update of the bond.

4. The balance of the cash bond to be returned to the lessee at the end of the lease shall be due to the legal interest, after one month after the transfer of the keys to the lessee, without the refund having been made effective.

5. The parties may agree to any guarantee of the tenant's compliance with his or her additional lease obligations on cash.

In the case of a housing lease, in contracts of up to five years, or up to seven years if the landlord is a legal person, the value of this additional guarantee shall not exceed two income brackets.

6. Except for the obligation to provide bail, the General Administration of the State, the Administrations of the Autonomous Communities and the entities that make up the Local Administration, the autonomous agencies, the public entities (a) employers and other public entities linked to or dependent on them, and the mutual partners with social security in their public role in the management of social security, as well as their joint centres, where the income is to be satisfied with their respective budgets.

Article 37. Formalisation of the lease. The parties may reciprocate to the written formalisation of the contract

of leasing. In this case, the identity of the contractors will be indicated, the identification of the farm

leased, the agreed duration, the initial lease of the contract and the other clauses that the parties would have freely agreed upon.

TITLE V

Leasing processes

Articles 38 to 40.

(Repealed)

Additional provision first. Scheme of housing for official protection on tenancy.

1. The period of validity of the statutory scheme for official protection housing, which shall be qualified as a lease from the date of entry into force of this law, shall end as the period laid down in the applicable rules has elapsed. for the amortisation of the qualified loan obtained for its promotion or, in the absence of such a loan, after 25 years from the date of the corresponding final qualification.

2. The initial maximum rent per square metre of the official protection dwellings referred to in the preceding paragraph shall be the percentage of the maximum selling price corresponding to the applicable state or regional rules.

3. No revision of the income of official protection houses shall be applied unless explicit agreement is made between the parties. In the case of an express agreement between the parties on any mechanism of revision of monetary values that does not detail the benchmark index or methodology, the income shall be revised for each annuity by reference to the annual variation of the Guarantee Index Competitiveness.

4. In addition to the initial or revised income, the lessor may receive the actual cost of the services from which the tenant enjoys and satisfies the landlord.

5. Without prejudice to the administrative penalties which may be imposed, the terms and conditions which provide for higher income than the maximum permitted in the applicable regulations for official protection housing shall be null and void.

6. The provisions of the foregoing paragraphs shall not apply to public promotion housing regulated by Royal Decree-Law 31/1978.

7. The provisions of the preceding paragraphs shall be of general application in the absence of specific legislation of the Autonomous Communities with competence in the field.

8. The lease of public promotion housing shall be governed by the special rules of the term of duration of the contract, changes in the income, the limits of the impact of amounts by way of compensation. damages and improvements, and the provision for the right of disposal and subrogation in the lease, and in the absence of the right of the lease, which shall be applied in full when the lease ceases to be subject to those provisions particular.

The derogation shall not apply to matters of competence and procedure in which the provisions of this law shall be entirely applicable.

Additional provision second. Modification of the Mortgage Law. 1. Article 2, number 5, of the Mortgage Law, approved by Decree of 8 February

From 1946, the following wording shall be:

"5. The lease of real estate, and the subsections, disposals and subrogations thereof."

2. Within nine months of the entry into force of this law, the requirements for access of urban lease contracts to the Land Registry shall be established.

Additional provision third. Deposit of sureties. 1. The Autonomous Communities may lay down the obligation for the lessors to

The amount of the security provided for in Article 36.1 of this Law, without an interest, is made available to the Autonomous Administration or the public entity designated until the extinction of the corresponding contract. If one month after the end of the contract, the autonomic administration or the competent public body does not proceed with the return of the amount deposited, the corresponding legal interest shall be due.

2. In order to promote transparency and to facilitate the exchange of information for the exercise of public policies, the rules governing the deposit of security referred to in the preceding paragraph shall determine the data to be provided for to be provided by the lessor, including at least:

a) The identifying data of the leasing and leasing parties, including addresses for the purposes of notifications.

b) The identification data of the farm, including the postal address, year of construction and, in its case, year and type of reform, area constructed of private use for uses, cadastral reference and energy rating.

(c) The characteristics of the lease, including the annual income, the time limit set, the system of updating, the amount of the security and, where appropriate, additional guarantees, the type of agreement for the payment of the supplies basic, and if furnished.

Additional provision fourth. Aid for access to housing. Persons who, in application of the provisions of the second transitional provision

of this law, they are deprived of the right to the surrogacy mortis cause that it recognized the recast text of the Law of Urban Leases, approved by Decree 4104/1964, of December 24, will be subject preferentially of the programs of aids public for access to housing, provided that they meet the requirements for maximum income to be established in such programmes.

Additional provision fifth. Amendment of the Law on Civil Procedure. 1. Article 1.563 of the Civil Procedure Act shall be drawn up in the form

next:

" 1. The eviction for non-payment of the income, of the amounts assimilated or of the amounts whose payment the tenant has assumed in the tenancy of dwellings or in the tenancy of a habitable urban estate in which they are carried out professional, commercial or industrial activities, may be supported by the lessee if at any time prior to the time indicated for the conclusion of the judgment, he pays the actor or makes available to him in the Court or notarially the amount of the the quantities in whose ineffectiveness the demand is sustained and the demand for which in that instant the adeude.

2. This energy shall not take place where another previously occurred, nor when the lessor would have required, by any means to prove its constancy, to pay the tenant four months in advance to the filing of the claim and the application would not have paid the amounts due at the time of the filing.

3. In any event, the concurrent circumstances which may or may not allow the energy to be permitted shall be indicated in the application. Where appropriate, the Court shall indicate on the summons the duty to pay or to enter the amount before the conclusion of the judgment. '

2. The appeals against judgments in the matters referred to in Article 38 shall be dealt with in preference to both the Provincial Hearings and the High Courts.

In the case of proceedings for the launch, the defendant shall not be admitted to appeals and appeals, where they proceed, if he does not credit the application for the payment of the income due and those which he is required to pay under the contract advanced, or if not the watchword or notarially.

If the lessee does not comply with the above, the judgment shall be signed and the judgment shall be executed, provided that it is required by the judge or tribunal that he or she is aware of the judgment that he or she does not fulfil his obligation to pay or to enter within five days.

The appeal or appeal brought by the lessee, whatever the state in which it is situated, shall also be held in the desert if, during the course of the proceedings, the lessee has to pay the time-limits which he or she must bring forward. However, the lessee may be able to advance or to record the payment of several non-expired periods, which shall be subject to settlement once the judgment is signed. In any event, the payment of these amounts shall not be understood as contractual novation.

3. Article 1.687.3 of the Civil Procedure Act shall be worded as follows:

" Article 1.687.3. The judgments handed down by the Audiences in the trials of eviction

have special regulations, except those given in the case of a eviction for non-payment of the income, those given in processes on urban leases followed by the procedures of the judgment of cognition, in the latter case when they are not (a) in accordance with the first instance, and the retraction judgments, where in all cases they reach the required amount for this class of resources in the ordinary declaratives.

However, if it is a housing lease, it shall be sufficient for the amount to exceed 1,500,000 pesetas.

It is understood that the judgment of appeal and of first instance are in conformity even if they differ in relation to the imposition of costs. '

Additional provision sixth. Census of urban leases. 1. The Government shall proceed through the Ministry of Public Works, Transport and the Media

The environment, within one year of the entry into force of this law, in order to establish a census of the tenancies of dwellings subject to this law subsisting to its entry into force.

2. This census shall include data identifying the landlord and the tenant, the income of the contract, the existence or otherwise of the revision clauses, the duration and the date of the contract.

3. For these purposes, the lessor shall forward to the Ministry of Public Works, Transport and the Environment within three months of the entry into force of the law, the details of the contract referred to in the preceding paragraph.

4. Tenants shall be entitled to apply for inclusion in the census referred to in this provision of their respective contracts, giving written account to the landlord of the data submitted.

5. Failure to comply with the obligation referred to in paragraph 3 shall deprive the lessor who has failed to fulfil the obligation to the tax benefits referred to in the fourth final provision of this law.

Additional provision seventh. Amendment of Law 36/1988 of 5 December of Arbitration. It is added to Article 30 of Law 36/1988 of 5 December of Arbitration, a number 3,

the content of which shall be:

" In the arbitration proceedings that bring about contracts under the legal regime of the Urban Leases Act, in the absence of an express pact of

the parties, the arbitrators shall make the award within three months, counted as set out in the number 1 of this Article. '

Additional provision octave. Right of return. The right of return regulated in the fourth provision. 3. of the recast text

of the Law on the Regime of Soil and Urban Planning, approved by the Royal Legislative Decree 1/1992, of June 26, will be governed by what is foreseen in this provision and, failing that, by the rules of the recast text of the Law of Leases Urban 1964.

In the case of isolated non-expropriatory urban planning required by urban planning, the total demolition or the integral rehabilitation with the preservation of the facade or the structure of a building, in which it is necessary, must be carried out. there are rented urban housing is either the date of the lease, the lessee will have the right to the landlord of the said estate to provide a new dwelling of a surface of not less than 50 per 100 of the previous one, provided that has at least 90 square metres, or not less than that of which it has, if it did not surface, of characteristics similar to that and which is located in the same solar or in the environment of the building demolished or rehabilitated.

Additional provision novena. Declaration of the situation of disability. For the purposes of this law, the situation of disability and its degree must be

declared, in accordance with the rules in force, by the centres and services of the competent public administrations.

Additional provision 10th. Prescription. All rights, obligations and actions resulting from the contracts of

leasing referred to in this law, including those remaining on the date of entry into force of this law, shall prescribe, where there is no specific time limit prescribed, in accordance with the provisions of the general scheme contained in the Code Civil.

Transitional provision first. Contracts concluded as from 9 May 1985. 1. Housing leases concluded as from 9 May 1985

(a) the date of entry into force of this law, shall continue to be governed by the provisions of Article 9 of the Royal Decree-Law 2/1985 of 30 April 1985 on economic policy measures and the provisions of the inquilinate in the recast text of the Law on Urban Leases, approved by Decree 4104/1964 of 24 December.

The provisions of paragraphs 2 and 3 of the second transitional provision shall apply to these contracts.

The tacit renewal provided for in Article 1,566 of the Civil Code shall be for a period of three years, without prejudice to the power of non-renewal provided for in Article 9 of this Law. The renewed lease shall be governed by the provisions of this law for housing leases.

2. Local business leasing contracts concluded from 9 May 1985, which remain on the date of entry into force of this law, will continue to be governed by the provisions of Article 9 of the Royal Decree-Law 2/1985 of 30 June 1985. April, and by the provisions of the recast text of the Urban Leases Act of 1964. In the case of tacit renewal in accordance with Article 1,566 of the Civil Code, the renewed lease shall be governed by the rules of this law relating to leases for use other than that of housing.

The provisions of the preceding paragraph shall apply to contracts for leasing similar to that of tenant and business premises which had been concluded as from 9 May 1985 and which remain on the date of entry into force of the said paragraph. law.

Second transitional arrangement. Housing rental contracts concluded before 9 May 1985.

(a) The applicable regulatory regime.

1. Housing leases concluded before 9 May 1985, which remain on the date of entry into force of this Law, shall continue to be governed by the rules relating to the contract of inquiry into the recast of the Law. Urban Leases of 1964, except for the modifications contained in the following paragraphs of this transitional provision.

2. The provisions of Articles 12, 15 and 24 of this Law shall apply to these contracts.

3. The provisions of Article 24 (1) of the recast of the Urban Leases Act of 1964 shall cease to apply.

The rights of tanteo and retraction, as regulated in Chapter VI of the recast of the Urban Leases Act of 1964, shall not proceed in cases of the award of housing as a result of a division of a common thing when the contracts of the lease has been awarded after the constitution of the community on the matter, nor in the cases of division and adjudication of common thing acquired by inheritance or legacy.

B) Extinction and subrogation. 4. From the entry into force of this law, the subrogation referred to in the article

58 of the recast text of the Urban Leases Act of 1964, it may only take place in favour of the spouse of the lessee not legally separated or in fact, or failing to do so, of the children who lived with him during the two years preceding his death; in the absence of the foregoing, the ascendients of the lessee may be subrogated to his position and they shall be with him for at least three years in advance of the date of his death.

The contract shall be terminated at the death of the subrogate, unless a child of the lessee is not affected by a disability equal to or greater than 65 per 100, in which case it shall be extinguished at two years or on the date on which the subrogated Twenty-five years, whichever is later.

However, if the subrogation were the spouse and at the time of his death there were children of the lessee who lived with him, there may be further subrogation. In this case, the contract shall be extinguished at two years or when the child reaches the age of twenty-five years if that date is later, or by his death if he is affected by the disability referred to in the preceding paragraph.

5. To the death of the person who, within the meaning of Articles 24.1 and 58 of the recast of the Urban Leases Act of 1964, has been subrogated to the position of the tenant before the entry into force of this law, only his or her spouse not legally separated or in fact and, failing that, the children of the lessee who live in the rented dwelling and who have lived with him during the two years preceding his death.

The contract shall be terminated at the death of the subrogate, unless a child of the lessee is not affected by a disability equal to or greater than 65 per 100, in which case it shall be extinguished at two years or when the child reaches the age of 25. years if this date is later.

No subsequent subrogations are allowed. 6. The death of the person in accordance with Article 59 of the recast text

The Urban Leases Act of 1964 occupied the dwelling by second subrogation no subsequent subrogations are allowed.

7. The rights referred to in paragraphs 4 and 5 of this provision to the spouse of the lessee shall also apply in respect of the person who has been living with the lessee permanently in the same relationship as the lessee. affectivity to that of spouse, irrespective of their sexual orientation, during at least the two years preceding the death, unless they have had offspring in common, in which case the mere coexistence is sufficient.

8. During the ten years following the entry into force of the law, if the subrogation provided for in paragraphs 4 and 5 above has been produced in favour of children over the age of sixty-five years or who are recipients of public benefits by Permanent invalidity or invalidity in the degree of permanent incapacity or great invalidity the contract shall be extinguished by the death of the surrogate child.

9. It is for the persons who exercise the subrogation referred to in paragraphs 4, 5 and 7 of this provision to prove the condition of coexistence with the deceased tenant who for each case proceeds.

The condition of cohabitation with the deceased tenant must be habitual and necessarily occur in the rented dwelling.

The provisions on procedure and order of precedence laid down in Article 16 of this Law shall apply to the subrogation by reason of death as referred to in paragraphs 4 to 7 above.

In no case will the beneficiaries of a subrogation be able to renounce it in favour of another one of a different degree of precedence.

(c) Other rights of the lessor. 10. For contract annuities starting from the entry into force of the

this law, the lessor shall have the following rights:

10.1 In the Heritage Tax, the value of the leased property will be determined by capitalization at 4 per 100 of the earned income, provided that the result is less than that which would result from the application of the rules of valuation of goods buildings provided for in the Law on the Tax on Heritage.

10.2 The total amount of the Real Estate Tax quota corresponding to the leased property may be required by the lessee. Where the quota is not individualised, it shall be divided in proportion to the area of each dwelling.

10.3 The amount of the repair works necessary to maintain the dwelling in a state of service for the agreed use may be passed on to the lessee in the terms resulting from Article 108 of the recast text of the Leases Act. Urban 1964 or according to the following rules:

1. That the repair has been requested by the lessee or agreed upon by a judicial or administrative decision.

If the lessees concerned are several, the application must have been made by the majority of the tenants concerned or, where appropriate, by tenants representing the majority of the participation fees for the flats concerned. affected.

2. The capital invested in the costs incurred shall be deducted from the aid or public aid received by the owner.

3. The capital invested shall be added to the amount of the legal interest of the money corresponding to that calculated capital for a period of five years.

4. The lessee shall pay annually an amount equal to 10 per 100 of the amount referred to in the previous rule, until its full payment.

In the case of several lessees concerned, the amount referred to in the previous rule shall be divided among them in accordance with the criteria laid down in Article 19 (2) of this Law.

5. The annual amount paid by the lessee may not exceed the lower of the following two quantities: five times its current income plus the amounts assimilated to it or the amount of the inter-professional minimum wage, both of which are considered in its annual computation.

10.4 If the lessor has chosen to carry out the impact in accordance with the provisions of Article 108 above, the impact shall be made in proportion to the area of the farm concerned.

10.5 The amount of the cost of services and supplies arising from the entry into force of the law may be passed on to the lessee.

It is excepted from the assumption that, by agreement, between the parties all these expenses will be on behalf of the landlord.

D) Income update. 11. The rental of the contract may be updated at the request of the previous lessor

Requirement to the lessee. This requirement may be made on the date on which, from the entry into force

of the law, an annuity of validity of the contract is fulfilled.

In each of the years in which it applies this update, the lessor must notify the lessee of the amount of the update, accompanied by certification from the National Institute of Expressive Statistics of the the determining indices of the notified quantity.

The update will be developed according to the following rules:

1. The income agreed initially in the contract that gave rise to the lease shall maintain, during each of the annuities in which the update is developed, with the updated income, the same proportion as the National General Index of the Consumer Price Index System or the National General Index or Urban General Index of the Life Cost Index System prior to the date of the contract with respect to the Index corresponding to the month prior to the date of update.

In the case of land leases falling within the meaning of Article 6 (2) of the recast of the Urban Leases Act of 1964 which were concluded before 12 May 1956, the revalorisation referred to in the first paragraph shall be taken as the initial income. Article 96.10 of the said recast text, whether or not it is required by the lessor in its day; and, as an index corresponding to the date of the contract, the month of June 1964.

In housing leases not covered by Article 6 (2) of the said recast text concluded before 12 May 1956, it shall be taken as an initial income, which shall be collected in the month of July 1954, and as an index corresponding to the date of the contract in March 1954.

2. The updated income corresponding to each annual period calculated in accordance with the provisions of the preceding rule or the 5. rule 5. The tenant shall only be required to make the percentage resulting from the provisions of the following rules provided that this amount is greater than the rent paid by the lessee at that time increased in the amounts assimilated to the income.

In the event that, when applying the table of percentages that corresponds to it, the income that was being paid at that time was greater than the amount corresponding to the application of such tables, the percentage would be applied immediately above, or if appropriate, the following or subsequent corresponding amounts, until the amount payable on the updated income is higher than the amount payable.

3. The updated income shall absorb the amounts assimilated to the income from the first annuity of the review.

These exclusive effects, the impact on the lessee of the increase in the cost of the services and supplies referred to in Article 102 of the recast of the Urban Leases Act are considered to be equivalent to the income. the impact of the cost of the works referred to in Article 107 of that legal text.

4. From the year in which one hundred per cent of the update is reached, the corresponding income may be updated by the lessor or the lessee in accordance with the percentage change experienced in the previous twelve months by the General Index of the Consumer Price Index System, except where the contract contained another update system, in which case it will be applicable.

5. When the updated income calculated in accordance with the provisions of Rule 1 is higher than that which results from the application of the following paragraph, the latter shall be taken as the revised income.

The income for these purposes shall be determined by applying the following percentages to the cadastral value of the leased land in force in 1994:

-12 per 100, when the cadastral value will result from a revision that would have had effects after 1989.

-24 per 100 for the rest of the assumptions.

For farms located in the Basque Country, the percentage of the 24 per 100 will be applied to the cadastral value; for farms located in Navarra, the percentage of 12 per 100 will be applied to the cadastral value.

6. The tenant may object to the rent update by making the payment to the lessor within 30 calendar days of receipt of the order of the tenant, in which case the income that he/she has paid Until that time, increased with the amounts assimilated to it, it will only be able

be updated annually with the variation experienced by the National General Index of the Consumer Price Index System in the twelve months immediately prior to the date of each update.

The lease contracts for which the tenant exercises the option referred to in this rule shall be extinguished within eight years, even if a subrogation occurs, with the said term having been counted from the date of the Rental requirement of the lessor.

7. The rent update provided for in this paragraph shall not be carried out where the sum of the total revenue collected by the lessee and the persons who normally live in the rented dwelling does not exceed the following limits:

Number of people living together

in the rented house

Limit in number of times

the inter-professional minimum wage

1 or 2 2.5 3 or 4 3

More than 4 3.5

The income to be considered shall be the total of those obtained during the tax year preceding the year in which the rent was promoted by the landlord.

In the absence of an accreditation by the lessee of the income received by the whole of the persons living in the rented house, the proposed update shall be presumed to be appropriate.

8. In cases where the update does not apply, the income to be paid by the tenant, increased in the amounts assimilated to it, may be updated annually on the basis of the variation experienced by the General Price Index. Consumption in the twelve months immediately prior to the date of each update.

9. The rent update, where applicable, shall be carried out within the following time limits:

(a) In ten years, when the sum of the total income received by the lessee and the persons who normally live in the rented house does not exceed 5,5 times the minimum inter-professional salary.

In this case, the percentages payable for the updated income shall be as follows:

Annual period of update

from the entry into force of the law

Required percentage

of the updated income

1. º 10 2. º 20 3. º 30 4. º 40 5. º 50 6. º 60 7. º 70 8. º 80 9. º 90 10. º 100

(b) In five years, where the indicated sum is equal to or greater than 5,5 times the minimum inter-professional salary.

In this case, the percentages payable for the updated income shall be twice as high as in point (a) above.

10. The provisions of this paragraph shall replace the provisions for housing leases in Article 100 (1) and (4) of the recast of the Urban Leases Act of 1964.

Transitional provision third. Contracts for the lease of business premises, concluded before 9 May 1985.

(a) The applicable regulatory regime. 1. Local business leasing contracts concluded before 9 May

of 1985 which subsist on the date of entry into force of this law, will continue to be governed by the rules of the recast text of the Law of Urban Leases of 1964 concerning the lease of business premises, except for amendments contained in the following paragraphs of this transitional provision.

B) Extinction and subrogation. 2. Contracts which at the date of entry into force of this law are in

the situation of legal extension shall be extinguished in accordance with the provisions of paragraphs 3 to 4 below.

3. Leases whose lessee is a natural person shall be extinguished by retirement or death, unless their spouse is subrogated and the same activity carried out on the premises continues.

In the absence of a surviving spouse who continues the activity or in the event of his or her retirement or death, if at that time twenty years have not elapsed since the law is passed, the contract may be subrogated to the contract a descendant of the tenant continuing the activity developed at the site. In this case, the contract will last for the number of years sufficient to complete twenty years from the entry into force of the law.

The first subrogation provided for in the preceding paragraphs may not take place where two transmissions have already been produced in accordance with the provisions of Article 60 of the recast of the Urban Leases Act. The second subrogation envisaged may not take place where a transmission has already been produced in accordance with the provisions of Article 60.

The current tenant and his/her spouse, if they have subrogated, will be able to transfer the business premises in the terms provided for in Article 32 of the recast text of the Urban Leases Act.

This transfer shall permit the continuation of the lease for a minimum of 10 years from its completion or for the number of years to be completed from the moment the transfer takes place up to twenty years from the date of the approval. of the law.

Where the transfer of the business premises has occurred in the ten years preceding the entry into force of the law, the time limits referred to in this paragraph shall be increased by five years.

It shall be taken as the date of the transfer, for the purposes of this paragraph, of the deed referred to in Article 32 of the recast of the Urban Leases Act of 1964.

4. Leases of business premises whose tenant is a legal person shall be extinguished in accordance with the following rules:

1. The leases of premises in which commercial activities are carried out, in twenty years.

Commercial activities are considered to be the same as those in Division 6 of the Economic Activities Tax Tariff.

The exception is the area of more than 2,500 square metres, in which case the extinction will take place in five years.

2. Lleases of premises in which activities other than those referred to in Rule 1 are carried out in respect of which the fees correspond according to the rates of the Economic Activities Tax:

-Of less than 85,000 pesetas, in twenty years. -Between 85,001 and 130,000 pesetas, in fifteen years. -Between 130,001 and 190,000 pesetas, in ten years. -Of more than 190,000 pesetas, in five years.

The quotas to be taken into account for the purposes laid down in this paragraph are the minimum municipal quotas or the minimum tariff quotas, which include, where appropriate, the area supplement for the financial year. 1994. In those activities to which an allowance is paid in the Economic Activities Tax quota, that allowance shall apply to the minimum municipal quota or minimum fee for the purposes of determining the quantity to be determined by the corresponds.

The time limits referred to in the above rules shall be counted from the entry into force of this Law. Where the transfer of the business premises has occurred in the ten years preceding that entry into force, the time limits for the termination of contracts shall be increased by five years. It shall be taken as the date of the transfer of the deed referred to in Article 32 of the recast of the Urban Leases Act.

Where activities are carried out at a local level to which different quotas correspond, only the largest of these quotas shall be taken into account.

The lessee is responsible for the test of the quota corresponding to the activity carried out in the leased premises. By default of proof, the lease shall be at least the durations provided for in the first subparagraph.

5. Contracts in which, on the date of entry into force of this law, the time limit laid down in the contract has not yet elapsed, shall last for the time to be met. Where this period of time is lower than that which would result from the application of the rules in paragraph 4, the lessee may make the lease for the period resulting from the application of those rules.

In the cases provided for in this paragraph and in paragraph 4, the tacit renewal shall be governed by the provisions of Article 1,566 of the Civil Code, and the rules of this law relating to leases shall apply to the renewed lease. of urban estates for use other than that of housing.

C) Income update. 6. From the date of entry into force of this law, on the date on which each

year of validity of the contract, the rent of the leases of local business may be updated, at the request of the lessor, upon request of the tenant in accordance with the following rules:

1. The income agreed initially in the contract that gave rise to the lease shall maintain the same proportion as the National General Index of the Consumer Price Index System or the National General Index or General Urban Index of the Life Cost Index System of the month before the date of the contract with respect to the index corresponding to the month before the date of each update.

In contracts concluded before 12 May 1956, the revalorisation referred to in Article 96.10 of the said recast text shall be taken as the initial income, whether or not required by the lessor, and as a corresponding index. to the date of the contract of the month of June 1964.

2. The updated income corresponding to each annual period calculated in accordance with the preceding rule, shall only be payable to the lessee by the percentage resulting from the percentages tables provided for in the following rules function of the corresponding update period, provided that this amount is greater than the rent paid by the lessee at that time increased in the amounts assimilated to the income.

In the event that, when applying the table of percentages that corresponds to it, the income that was being charged at that time was greater than the amount corresponding to the application of such tables, the percentage would be applied immediately higher, or if applicable, the following or subsequent corresponding, until the amount payable on the updated income is higher than the one that was being charged without the update.

3. In the leases to which it corresponds, in accordance with paragraph 4, an extinction period of five or ten years, the income review shall be made in accordance with the following table:

Update from the entry into force

of the law

Eligible percentage of the updated income

1. º 10 2. º 20 3. º 35 4. º 60 5. º 100

4. In the leases referred to in paragraph 3, and in respect of those to which it corresponds, in accordance with paragraph 4, an extinction period of 15 or 20 years, the income review shall be carried out in accordance with the percentages and the time limits laid down in Rule 9 (a) of paragraph 11 of the second transitional provision.

5. The updated income will absorb the amounts assimilated to the rent from the first annuity of the review.

The income to these exclusive effects is considered to have the effect on the lessee of the increase in the cost of the services and supplies referred to in Article 102 of the recast of the Law on Urban Leases and the the impact of the cost of the works referred to in Article 107 of that legal text.

6. From the year in which the 100 per 100 update is reached, the corresponding income may be updated by the lessor or the tenant according to the percentage change experienced in the previous twelve months by the General Index of the Consumer Price Index System, except where the contract contained another update system, in which case it will be applicable.

7. The provisions of this paragraph shall replace the provisions for the leases of business premises in Article 100 (1) of the recast of the Urban Leases Act of 1964.

8. To determine for these purposes the date of conclusion of the contract, it shall be in accordance with the date on which it was concluded, irrespective of whether the current tenant is the original or the person who is subrogated in his position.

7. The lessee may revise the income in accordance with the provisions of Rules 1, 5. and 6. of the preceding paragraph in the first income to be paid, on the basis of the review requirement made by the lessor or on his own initiative.

In this case, the minimum period of time provided for in paragraph 3 and the time limits laid down in paragraph 4 shall be increased by five years.

The provisions of the preceding paragraph shall also apply in cases where the income which was paid at the time of entry into force of the law was greater than that resulting from the update provided for in paragraph 7.

8. The revision of the income provided for in the contracts referred to in paragraph 3 and for those referred to in paragraph 4 which have a period of extinction of fifteen or twenty years shall not proceed when the lessee opts for the application of the same.

In order to do so, the tenant must communicate in writing to the landlord his will within thirty calendar days following receipt of the order of the tenant for the revision of the rent.

The lease contracts for which the lessee exercises the option of non-revision of the income shall be extinguished when the fifth annuity counted from the entry into force of this law expires.

D) Other rights of the lessor. 9. For the annuities of the contract to be initiated from the entry into force of this

the law, and until the extinction of the law, will also apply to these contracts as provided for in paragraph 10 of the second transitional provision.

(e) Other rights of the lessee. 10. The lessee shall be entitled to compensation of an amount equal to eighteen

In the case of the sale of the lease, any person may start exercising the same activity or activity at the local level before the end of a year from the end of a year from the date of the termination of the lease. exercise. Shall be considered

(a) the activities typically eligible to benefit, even if only in part, from the customers ' customers who were employed by the lessee.

11. Extinguished the lease in accordance with the foregoing paragraphs, the lessee shall have the right to continue at the premises leased if the lessor intends to conclude a new contract with a different tenant before a year has elapsed since the legal termination of the lease.

To this end, the lessor must notify the tenant of his intention to enter into a new lease, the income offered, the essential terms of the contract and the name, address and circumstances of the new lease. tenant.

The right to continue on the premises leased under the conditions offered must be exercised by the lessee within 30 calendar days from the date of the notification, proceeding within this period to the signature of the contract.

The lessor, after the period of 30 calendar days from the notification without the tenant having signed the proposed lease, must formalize the new lease within a period of one hundred years. Twenty calendar days from the notification to the tenant whose contract was extinguished.

If the lessor has not made the notification prevented or omitted from it any of the requirements or the agreed income, the person of the new tenant or the other essential conditions of the contract, will have the lessee whose contract was extinguished to subtract, by law ministry, in the new lease in the period of sixty calendar days since the lessor referred to him the legalised copy of the new contract held to that effect, being entitled to exercise the action of eviction by the procedure established for the exercise of the retracted action.

The lessor is obliged to forward to the lessee whose contract has been extinguished, a copy of the new contract concluded within the year following the extinction, within 15 days of its conclusion.

The exercise of this right of preference will be incompatible with the perception of the compensation provided for in the previous paragraph, with the tenant being able to choose between one and the other.

12. This transitional provision shall apply to contracts for the lease of business premises for pharmacy offices which were concluded before 9 May 1985 and which remain on 31 December 1999.

Transitional provision fourth. Lease contracts entered in the same way as before 9 May 1985.

1. Contracts of leases assimilated to those of inquilinate referred to in Article 4.2 of the recast text of the Urban Leases Act of 1964 and those assimilated to those of the business premises referred to in Article 5.2 of the same text legal, concluded before 9 May 1985 and which remain at the date of entry into force of this Law, shall continue to be governed by the rules of the said recast text which apply to them, except for the amendments contained in paragraphs 1 and 2. of this transitional provision.

2. Leases assimilated to the tenant shall be governed by the provisions of the third transitional provision. For this purpose, contracts concluded by the Catholic Church and by non-profit-making corporations shall be deemed to be equivalent to those referred to in Article 2 (4) of Regulation (EC) No 74/2014, to which a period of termination of the fifteen years. The others shall be deemed to be equivalent to those referred to in that rule 2. for a period of 10 years.

3. Leases treated as business premises shall be governed by the provisions of the third transitional provision for local leases referred to in Rule 2 (4) to which a quota of more than 190,000 corresponds pesetas.

4. Leases of urban estates in which professional activities are carried out shall be governed by the provisions of the preceding paragraph.

Transitional provision fifth. Leases of official protection homes. The leases of official protection housing that remain at the entry into force

This law will continue to be governed by the rules that will apply to them.

Transitional provision sixth. Court proceedings. 1. Title V of this Law shall apply to disputes relating to contracts of

Rental of urban land that subsist to the date of entry into force of this law. 2. Except as regards the value of the claim and the conformity of the

judgments, which shall be immediately applicable to appeals in disputes relating to contracts for local business leases where the judgment of the Provincial Court has been given after the entry into force of the present law.

Single derogation provision. Provisions to be repealed. They shall be repealed, without prejudice to the transitional provisions of the

This law, Decree 4104/1964 of 24 December, approving the recast of the Urban Leases Act of 1964; Articles 8 and 9 of Royal Decree-Law 2/1985 of 30 April 1985 on Economic Policy Measures, and provisions of equal or lower rank are contrary to the provisions of this law.

The Decree of 11 March 1949 is also repealed. This derogation shall have effect on the territorial scope of each Autonomous Community where the provisions referred to in the third provision of this law are laid down.

Final disposition first. Nature of the law. This law is issued pursuant to Article 149.1.8. of the Constitution.

Final disposal second. Entry into force. This law shall enter into force on 1 January 1995. Paragraph 3 of the second transitional provision shall enter into force on the day following that of

the publication of this law in the "Official Gazette of the State". Business premises transfers produced from the date specified in the paragraph

shall be deemed to have been produced from the date of entry into force of the law.

Final disposal third. Publication by the Government of the Consumer Price Indexes to which this law refers.

The Government, within one month of the entry into force of this law, will publish in the "Official State Gazette" a list of the Index of Consumer Prices from 1954 to the entry into force of this Law.

Once the ratio referred to in the previous paragraph has been published, the National Statistics Institute, when announcing monthly changes in the Index of Consumer Prices, will also record the variation of the proportion with the base index of 1954.

Fourth final disposition. Compensation by tax. The Government shall proceed, after one year after the entry into force of the law,

to submit a draft law to the General Courts, by means of which a system of tax benefits is to be established to compensate the lessors, in contracts concluded before 9 May 1985 which remain at the date of entry into force of the law, as long as the contract remains in force, where such lessors do not enjoy the right to the revision of the income of the contract by application of Rule 7 (11) of the second transitional provision of this law.

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