Spanish Urban Renting Law 29/1994, of 24 November. PREAMBLE
NOTE: This translation is not official – It is for information purposes only
Rentals for use other than residential use
Article 29. Disposal of the leased property.
The purchaser of the leased property shall be subrogated to the rights and obligations of the lessor, unless the purchaser meets the requirements of article 34 of the Mortgage Act.
Article 30. Conservation, improvement and tenant works.
The provisions of Articles 21, 22, 23 and 26 of this Law shall also apply to the leases governed by this Title. So shall the provisions of Article 19 from the commencement of the lease.
Article 31. Right of first refusal.
The provisions of article 25 of this law shall apply to the leases regulated by this Title.
Article 32. Assignment of the contract and sublease.
1. When a business or professional activity is carried out on the leased property, the lessee may sublease the property or assign the lease contract without the need for the lessor’s consent.
2. The lessor is entitled to a rent increase of 10% of the rent in force in the event of a partial sublease, and 20% in the event of the assignment of the contract or the total sublease of the leased property.
3. The change in the person of the lessee as a result of the merger, transformation or spin-off of the leasing company shall not be deemed to be an assignment, but the lessor shall be entitled to the increase in the rent provided for in the preceding paragraph.
4. Both the assignment and the sublease must be notified to the lessor within one month of the date of the agreement.
Article 33. Death of the tenant.
In the event of the death of the lessee, when a business or professional activity is carried out on the premises, the heir or legatee who continues to carry on the activity may subrogate himself to the rights and obligations of the lessee until the end of the contract.
Subrogation must be notified in writing to the landlord within two months of the date of the tenant’s death.
Article 34. Compensation to the tenant.
The termination of the lease of a property in which a commercial activity of sale to the public has been carried out during the last five years shall entitle the lessee to compensation from the lessor, provided that the lessee has stated four months prior to the expiration of the lease term his intention to renew the contract for a minimum of five more years and for a market rent. The market rent shall be considered to be that agreed by the parties to this effect; in the absence of an agreement, that determined for this purpose by the arbitrator appointed by the parties.
The amount of compensation shall be determined as follows:
1. If, within six months of the expiry of the lease, the lessee starts to carry out the same activity in the same municipality as that to which he has been assigned, the compensation shall include the relocation costs and the loss of customers incurred in relation to the loss of customers in the previous premises, calculated in relation to the loss incurred in the first six months of the new activity.
2. If the lessee starts within six months following the termination of the lease a different activity or does not start any activity, and the lessor or a third party carries out the same activity or a similar activity on the property within the same period as the one carried out by the lessee, the compensation shall be one month’s rent per year of the duration of the contract, with a maximum of eighteen months’ rent.
Activities typically eligible for profit are considered to be related, although only in part of the clientele attracted by the activity carried out by the lessee.
In the absence of agreement between the parties on the amount of the compensation, it shall be fixed by the arbitrator appointed by them.
Article 35. Resolution as of right.
The lessor may terminate the contract as of right for the reasons set out in Article 27(2)(a), (b), (d) and (e) and for the transfer or subletting of the premises in breach of Article 32.
Toni Marqués. Real Estate specialist
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