Leasing: most significant changes introduced by Law 13/2019

Law no. 13/2019 of 2019-02-12 has amended several diplomas that have an impact on the rental market. The objective of this law is to introduce measures to correct situations of imbalance between tenants and landlords, to increase the security and stability of urban lease and to protect tenants in a situation of special...

16 Mar 2019 min de leitura

It should be noted that on February 12, 2019, Law no. 12/2019 was also published in Diário da República, which also amends the legislation on arendamento in order to prohibit and punish harassment in the lease.

Among the qualifications that have undergone some changes are the New Urban Lease Regime (NRAU), the Civil Code, the legal regime of works on leased buildings, the income subsidy scheme to be awarded to tenants with concluded rental agreements before November 18, 1990 and which are in the process of updating income and the system of credit agreements relating to residential real estate.

What are the most significant changes introduced by law 13/2019?

One of the most significant changes impacting the NRAU concerns special protection for the elderly, disabled and long-term tenants. The law establishes the following amendment to the NRAU:

"1 - The transition from the contract to the NRAU is subject to an agreement between the parties, with respect to the value of the rent, if the lessee invokes and proves that:

a) Are 65 years of age or older or have a disability with a proven degree of incapacity equal to or greater than 60%; or that

b) Has lived for more than five years in the leased spouse, de facto bonded or relative of the lessee in the first degree of the straight line, who is in one of the conditions provided in the previous paragraph, and the RABC of the household is less than 5 RMNA.

(...)

10 - In the event of a contract transition to the NRAU pursuant to article 30 et seq., Without the right to apply the provisions of paragraphs 1 or 7 of this article, if the lessee has resided for more than 15 years in the leased and demonstrates it by means of attestation issued by the parish council of his area of residence and has, at the date of transition of the contract, an age equal to or greater than 65 years of age or a proven degree of disability equal to or greater than 60% , the landlord can only oppose the renewal of the contract on the basis of Article 1101 (b) of the Civil Code, and the requirements set out in Article 1102 of the Civil Code shall be applied with due adaptations.

11 - In the renewal of the contract provided for in the previous number, the landlord may carry out extraordinary updating of the rent up to the limit established in paragraphs a) and b) of paragraph 2 of article 35 of the NRAU, applying for this purpose the provisions of Articles 30 et seq. of that legal regime, maintaining the value of said income when it is equal to or greater than that limit.

12 - The extraordinary increase in income provided for in the preceding paragraph may not exceed 20% annually of the difference between 1/15 of the Tax Patrimonial Value of the leased and the income prior to the special update provided therein.

13 - In the case provided for in n. 9 and in the case of an extraordinary increase in income provided for in the previous number, the lessee is entitled to income subsidy, in accordance with its own diploma, without prejudice to access to other applicable housing support modalities. "

In addition, in the event of the tenant´s death, the NRAU will grant special rights in the sense of being able to assume as a tenant inheriting the contract, the children or stepchildren who lived with him [the deceased tenant] lived for more than five years, 65 years or more, provided the aggregate RABC is less than 5 RMNA.

Another novelty is the terms of the automatic renewal of leases with special impact on the short duration. The law states that:

"Unless otherwise stipulated [in the contract], the contract concluded with a fixed term shall be automatically renewed at its expiry and for successive periods of equal duration or of three years, whichever is shorter, without prejudice to the provisions of the following paragraph."

To this rule is added another that states that even if the landlord opposes the renewal of the contract, unless he claims that he will make use of the property or his descendants, the period between the beginning of the contract and its end never may be less than 3 years.

Among the most significant changes we also highlight the fact that the guarantor will only be responsible for the non-compliance of the tenant only after being informed by the landlord that these are taking place and that the landlord now has 90 days to do so and not lose rights . If, for example, a tenant becomes delinquent and the landlord only notifies the guarantor 120 days after the first stay the guarantor is only liable for the tenant´s debts or defaults that occurred within 90 days prior to the landlord´s notice and not the above.

Another novelty is the greater ease on the part of the tenant in proving that there is a lease even though this has never been written and signed by the parties. The law provides that:

"In the absence of written reduction of the lease that is not attributable to the lessee, the lessee can prove the existence of a title by any form admitted in law, demonstrating the use of leased by the lessee without opposition of the landlord and the monthly payment of the respective rent for a period of six months. "

The grounds for the termination of the contract now have a new article which imposes an additional step and respective deadlines to the landlord by providing that, in the case of successive dwellings of the tenant (specifically, if the lessee is in arrears for more than eight days, more than four times, followed or interpolated over a period of 12 months, with reference to each contract):

"The landlord can only terminate the contract if he has informed the tenant by registered letter with acknowledgment of receipt after the third delay in the payment of rent that he intends to terminate the lease in those terms"

Another novelty is that leases for permanent housing can not be less than one year (or more than 30 years).

There are also several news on the relationship between landlord and tenant in the event that works and / or demolition occur or are intended.

There is also some change in the rent subsidy scheme to be granted to tenants with housing leases, concluded before November 18, 1990. Another area with some changes is the non-housing lease agreements that we will not address here recommending the consultation of the law, as well as the creation of the Injunction Service for Leasing (SIMA) that we will not delve into this already long piece.

We end with an important excerpt from the law on non-discrimination in access to rental:

1 - No one shall be discriminated against in access to rental on grounds of sex, descent or ethnic origin, language, territory of origin, nationality, religion, belief, political or ideological beliefs, gender, sexual orientation, age or disability.

2 - The announcement of the offer of rental property and other form of advertising linked to the provision of rental properties may not contain any restriction, specification or preference based on discriminatory categories in violation of the provisions of the previous number.

Source: Economy Finance

Image: Jana Gomes