Exceptional lease regime
Law No. 4-C/2020, of April 6, establishes an exceptional regime for situations of late payment in the payment of rent under lease agreements for housing and non-housing purposes, also applicable to other contractual forms of exploitation of real estate, even if applicable to rents that are due from April 1, 2020. Law No. 4-A/2020 of April 6 also entered into force, which established an exceptional and temporary forfeiture regime and opposition to the renewal of housing and non-housing lease sand sums.
To benefit from the moratorium regime on rentals for housing purposes, tenants must prove:
- a fall of more than 20 household income compared to income for the previous month or the same period of the previous year; And
- A household effort rate of more than 35, calculated as a percentage of the income of all members of that household intended for the payment of income.
The demonstration of the income break is made under the terms of ordinance to be approved by the member of the Government responsible for housing.
In order to benefit from the moratorium regime on leases for non-residential purposes, including any other contractual forms of real estate exploitation, tenants must prove that they have:
- Establishments open to the public for retail trade activities and the provision of closed services or which have their activities suspended, including where they maintain the provision of e-commerce activities, or the provision of services at a distance or via an electronic platform, and
- catering establishments and the like, including where they operate for the sole purpose of confection intended for consumption outside the establishment or delivery at home, in both cases provided that such closure or suspension has occurred under the measures approved by Decree No. 2-A/2020 of March 20, by legislative or administrative determination, in accordance with decree-law no. 10-A/2020 of March 13, or under the Civil Protection Bases Act or the Basic Health Law as well as other provisions that are intended for the implementation of the state of emergency.
This scheme applies to rents that expire from 1 April 2020 and in the months in which the state of emergency takes place and in the first month following the end of the state of emergency.
Furthermore, the compensation legally provided for the late payment of rents (corresponding to 20 of the outstanding amount) will not be chargeable for rents that are due in the months in which the state of emergency takes place and in the first subsequent month for the tenants receiving this moratorium.
During the duration of measures for the prevention, containment, mitigation and treatment of epidemiological infection by SARS -CoV -2 and COVID-19 disease (as determined by the public health authority) and up to 60 days after the cessation of such measures are suspended
- the production of effects of complaints of housing and non-housing leases made by the landlord;
- the production of effects of opposition to the renewal of housing and non-housing leases made by the landlord;
- the expiry of housing and non-housing leases, unless the lessee does not object to termination;
- the period of 6 months provided for the restitution of the property in cases where expiry occurs, if the expiry of that period occurs during the period of time in which such measures take place;
- foreclosure on property that constitutes own and permanent housing of the executed.
If termination of the contract occurs on the initiative of the lessee, it shall become chargeable, from the
the date of termination, the immediate payment of overdue and unpaid rents, in acestour
terms of the Law.