A lease agreement is a contract between two parties: the landlord, who provides the use of a property, and the tenant, who uses it in exchange for rent. This contract can be terminated for various reasons as regulated by law. The expiration of the agreed term. Breach of obligations by either party. The landlord’s need to recover the property for personal or family use. Mutual agreement. Etc. In today’s article, we will focus on one of the lesser-known causes: the rental agreement termination due to ruin or the loss of the property for reasons not attributable to the landlord.
Landlord’s Obligation to Preserve the Leased Property.
According to the Spanish Civil Code, the landlord is required to make the necessary repairs to maintain the property in usable condition (Art. 1.554), while the tenant must promptly notify any deterioration (Art. 1.559). If either party fails to meet these obligations, the contract may be rescinded, and the defaulting party may be liable for damages (Art. 1.556). But what happens if a serious disaster occurs at the property?. Can the lease be terminated due to the ruin of the property?.
Declaration of Ruin and Loss of Property.
Although it may seem unusual, in certain situations, properties can be in such a state that a declaration of ruin becomes a possibility. This is more common than one might think, in cases of floods, earthquakes, or simply when the property has serious structural issues. All of these circumstances can render the property unsafe or unsuitable for use. In these cases, it seems logical (and this is anticipated by the Urban Lease Law) that the contract may and should be considered terminated. However, does the tenant have the right to compensation when this happens?.
Scenario 1. Lease Termination Without Compensation.
According to court rulings (such as the Supreme Court ruling of 26.11.2008), if the property is declared a ruin due to natural deterioration or an event not attributable to the landlord, the tenant has no right to compensation. In other words, if the landlord is not responsible for the cause of the ruin, the tenant cannot claim any compensation. In this case, the lease is terminated without any financial compensation for the tenant.
Scenario 2. Fault or Negligence. Termination of Lease with Compensation for Damages.
However, if the landlord’s conduct was fraudulent or negligent, and there is a direct and substantial link between this conduct and the damage caused, a claim for damages may be possible. For example, the tenant could seek compensation for expenses such as moving costs, etc., that he has had to bear due to the rental’s termination.
Conclusión.
The rental agreement termination due to ruin is a cause of lease termination that is more common than one might think. At White-Baos Lawyers, we are experts in Civil Law and the Urban Lease Law. If you find yourself in a situation like this, do not hesitate to contact us for expert advice on this and other related matters.
The information provided in this article is not intended to be legal advice, but merely conveys information relating to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
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