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Keys to the rural leases act

What is a rural lease?

Law 26/2005, of 30 November, explains in its first article what is meant by rustic rentals, that is, what differentiates this type of rentals from urban rentals (mainly for homes and business premises).

Article 1 of the aforementioned law states that "contracts by which one or more properties, or part of them, are temporarily assigned for agricultural, livestock or forestry use in exchange for a price or rent shall be considered rustic rentals".

 
What is the duration of rural lease contracts?

This is one of the most frequently asked questions in our office, https://www.forcamabogados.com/, and it is extremely important to take into account the duration of the rural lease. After the reform indicated, the law states that its duration will be five years and any clause in the contract that indicates a shorter duration will be null and void.

 

What rent must be paid in rural rental contracts?

The law on rural leases states that the amount will be freely agreed upon by the parties and the form of payment will be in money, but it leaves open the possibility of payment in kind, as long as it is converted into money.

If the parties do not agree on rent review in the contract, Article 13 of the Rural Leases Act states that "in the absence of an express agreement, no rent review shall be applied". In the event of an express agreement between the parties on any mechanism for revising monetary values that does not detail the reference index or methodology, the rent will be updated for each year by reference to the annual variation of the Competitiveness Guarantee Index.

 
Who must carry out the work on the property, the owner or the person renting the property?

Here too, the execution of the work on the rented property must be taken into account.  The owner must carry out the necessary works or repairs to preserve the rented property so that it can be used for the purpose for which it was intended when the contract was signed, without giving the owner the right to increase the rent for the works carried out.

 
If the owner does not decide to carry out the necessary works, what can the tenant do?

If the owner does not carry out the necessary works, the lessee may do so:

Request him in court to carry out the necessary repairs.
Resolve the contract
Request a proportional reduction in the rental price.
Carry out the same and request a refund by means of compensation with subsequent rents as they become due.