How long are commercial leases?

lease term

 

 

 

 

 

 

 

 

 

Are there legal limitations for the length of leases for use other than housing?

The basic principle is the freedom of agreement between the parties. Landlord and tenant can set the duration considered appropriate.

Maximum duration

There is unanimity between doctrine and jurisprudence in that would not be legal perpetual debentures (STS 9 July 2008). Hence, when the tenant is a legal entity, it is applied by analogy to the usufruct (article 515 Civil Code), a maximum duration 30 years old, without prejudice to the possibility that it is extended by agreement of the lessor and lessee beyond.

In the event that the tenant is a individual, jurisprudence, applying by analogy the Transitional Provision 3 of LAU 1994, considers that the limit is retirement or death.

Variable duration

But excluding the case, even allowed leases of varying duration in which it depends on a fact determinable (for example, could agree on renting a commercial property as a football club to remain in First Division).

Loss of property by the lessor

Occasionally, especially in long-term contracts, concerned at the situation of tenant ownership. They are the order of the day the bankruptcy estate infinite processes (Bami, Martinsa-Fadesa, Habitat, Sacresa, Tremor, Llanera, Nozar, Reyal Urbis, to name a few). What happens if the landlord loses the property?: In the case of commercial leases or use other than housing, Articles do not apply 13 and 14 the LAU: If a home, repossessed extinguish the lease. However, in shops, the contract is not extinguished: Article applies 29 the LAU: The new owner of the property is subrogated to the rights of the previous owner. The lessee of the premises can be quiet although the owner lessor enters bankruptcy.

Lack of clause length

If that were omitted in the contract duration, Article 1581 Civil Code, projected to is assimilated within the pay period: if payment is annual it is considered that the term is one year and if payment is monthly, term is understood by month.

The unilateral withdrawal is not allowed on premises Item 11 Act Tenancies.

The contract may be extended expressly, or implied including a clause that the absence of provision, the contract will be extended in the terms indicated. In this sense, is very important contract language that if there is any indication of the possibility of extensions may occur tacitly renewed: If nothing is said and nothing is planned, and the tenant remains in the property with consent of landlord, it is considered that there a new lease, that will last we've seen before in article 1581 Civil Code, and what is more important, guarantors or sureties that we had in the original lease no longer be required: personal guarantees are lost that could have been agreeing.

Ultimately, the main idea is the freedom of agreements regarding the duration of the contract, and this makes it important that the wording of it to advise one attorney who specializes in leasing.

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