With exquisite irony on 24th December 2009, as the Christian part of the World was commemorating one family’s search for shelter from the ‘bleak mid-winter’, the law to promote rental property, known popularly as the ‘express eviction’ law (law 19/2009) came into force here in Spain.

The new rules apply to both urban and rustic property, and to residential and commercial tenancies of any length.  They operate by amending previous legislation to streamline the eviction process, and hopefully stimulate the market for rental property and make at least some of the 3,000,000 empty rental properties available for rent by making it easier for Landlords to get rid of bad Tenants.

The new law also gives new rights to property owners who want to recover possession of property for their own use or to provide a permanent home for their parents, children, or for their ex-wife or ex-husband following a divorce or separation.

A Landlord can apply for eviction on the grounds of only one month’s arrears of rent.

The first stage in the process (which although not obligatory is recommended) is the sending of a ‘burofax’ to the defaulting Tenant demanding payment of the arrears of rent within 7 days.  This should contain a full statement of how the due arrears have accrued.  This is particularly important where the Tenant has made occasional payments while the arrears have been building up.

If the Tenant does not pay the full amount, or agree a payment plan acceptable to the Landlord, the next step is to issue a Court Summons to evict the Tenant and recover the money due. 

The proceedings must be supported by the following documents, all in Spanish:

• A copy of the rental contract
• A copy of the Landlord’s ‘escritura’ to prove that they are in fact the owner of the property
• A written statement of the amount of rent owed together with the amount of any outstanding bills for electricity, water, etc
• Copies of all previous written demands for the money owed

The Court Summons is then delivered to the Tenant.   Crucially, the Tenant does not have to accept service of the Summons in person; it need only be delivered to the property.

Once the proceedings have been sent to the Tenant, the Tenant then has 20 days in which he has his one and only chance to either pay up or formally come to terms with the Landlord.    The Tenant can make an offer to pay the arrears through the Court which the Landlord may accept or reject.  If the Landlord accepts the offer but the Tenant breaks the arrangement, the Landlord may apply to evict the Tenant without going back to Court.  If the Landlord rejects the Tenant’s offer the Landlord can apply immediately to the Court to evict the Tenant.

When the Court makes an order for eviction, it also fixes the date when it is to be executed by the police which is not less than 15 days after the date of the hearing.
A defaulting Tenant will be faced not only with an Order for possession of his home but also for payment of the Landlord’s legal costs including Court fees and Lawyers’ and Procurators’ Fees.

In addition, the Tenant will find that he has a judgment registered against him at the central registry of judgments in Madrid which will affect his ability to obtain credit and possibly rent other premises in the future.

Special Courts are to be established to deal with the new ‘express evictions’ and other new express procedures being brought in to recover bad debts and it will be interesting to see whether the legal system will be able to cope with these new pressures.

If you are thinking of renting out your property, whether for residential or commercial purposes, always have a written agreement professionally prepared in Spanish as well as your own language and check if your prospective Tenant is credit worthy before signing the rental contract and letting them into your property.

Supplied by Michael Olmer of Link Point Legal & Business Services