Yesterday, Catalonia once again played a major role in the Spanish real estate market through its legislative activity. We tell you about it below.
Evictions initiated by large holders of residential units against occupants without title were suspended
Decree Law 37/2020 suspends the eviction of persons or family units at risk of residential exclusion provided that the proceedings are initiated by: (a) large holders or (b) legal entities that have acquired after 30 April 2008 residential units from foreclosures, debt compensation or dation in payment agreements or purchase and sale agreements that have as their cause the inability to repay a mortgage loan.
The definitions of persons and units at risk of residential exclusion and of large holders are those of Law 24/2015 (see here). The social services of the relevant public administration are the ones entrusted with verifying whether a person or unit meets the requirements to be considered in risk of residential exclusion.
This suspension overlaps with that established, at national level, until 16 May 2024 for mortgages (by Law 1/2013 modified in this regard by Royal Decree-Law 6/2020, more information here) and until 31 January 2021 for lease agreements (by Royal Decree-Law 11/2020 modified in this regard by Royal Decree-Law 30/2020, more information here). However, Decree 37/2020 extends its scope of application to occupants without legal title, provided that a number of conditions are met:
- The claimant is a large holder.
- The residential unit is registered with the Register of vacant housing and housing occupied without title or meets the conditions to be registered there.
- Occupants have to prove by any means that they were in the unit before the beginning of the state of alarm declared by the Royal Decree 926/2020 of 25 October.
- Occupants should not have rejected any social relocation option in the last two years offered by any public administration.
- The municipal services should report favourably on the compliance by the occupants with the parameters of risk of residential exclusion and on the rooting and coexistence in the neighbourhood environment.
In addition, the Mossos and the Local Police are required to inform social services and the Public Prosecutor's Office if they receive a complaint requesting the adoption of a precautionary measure of eviction against persons or units that may be at risk of exclusion.
The Decree Law also reinforces, for the benefit of the occupants (with or without legal title), the procedure, already established in Law 24/2015, to ensure that they are offered a social rental if they meet the requirements. Specifically, the new Decree Law set out that proceedings will be suspended until there is no proof that the offer has been duly filed. You can see more details about social renting under Law 24/2015 here.
This regulation enters into force today.
The decree law establishing mandatory discounts for commercial leases was validated
In addition to the above, the Catalan Parliament validated yesterday's afternoon the Decree Law 34/2020 of 20 October that established mandatory rent discounts in commercial leases. You can see here more details about these discounts, which have been in force since October 22nd.
