Leasing Law and Leasing Procedural Law Reform Act Passed

2 November 2009

On October 29, 2009 the Spanish parliament approved a reform act for Leasing Law and Leasing Procedural Law (Act promoting and streamlining leasing procedures and energy efficiency in buildings). According to the latest news, it will go into effect once the Official State Gazette (BOE) is published this week.

The main objectives are, amongst others, as follows: (1) acceleration of the eviction process and, consequently, increased legal safeguards for lessors especially as regards changes to procedural law rules, (2) to likewise provide protection for the leasing situation so that in the future, disputes and the uncertainty associated with the status of the agreement are resolved more quickly; (3) create reciprocal confidence in a more efficient settlement of legal disputes and reactivate the overall rental market by bal-ancing the power of the parties involved and thus reducing the frequently exaggerated security deposit requests. To that end the official government statement reads as fol-lows: “In the future the lessee should be able to freely choose between renting and buying”; (4) the reform act also promotes measures to improve energy efficiency in-cluding but not limited to a reduction in the majority required for resident associations to make decisions in this regard.

For more information on this reform, please contact Nils Döhler: ndoehler@mmmm.es