Spanish Urban Renting Law 29/1994, of 24 November. PREAMBLE
NOTE: This translation is not official – It is for information purposes only
Article 36. Bail bond.
1. At the conclusion of the contract, the requirement and provision of a cash deposit in an amount equivalent to one month’s rent for the rental of dwellings and two months’ rent for use other than as a dwelling shall be mandatory.
2. During the first three years of the contract, the deposit is not subject to updating. But each time the lease is extended, the landlord may require that the bond be increased, or the tenant reduced, until it becomes equal to one or two monthly payments of the current rent, as applicable, at the time of the extension.
3. The updating of the deposit during the period of time in which the agreed term for the lease exceeds three years shall be governed by the terms stipulated by the parties for this purpose. In the absence of a specific agreement, what has been agreed on the updating of the rent will also be presumed to be wanted for the updating of the deposit.
4. The balance of the deposit in cash that must be returned to the tenant at the end of the lease, will accrue the legal interest, one month after the delivery of the keys by the same without this refund having been made.
5. The parties may agree on any type of guarantee for the performance by the lessee of his or her obligations in addition to the cash deposit.
6. The General State Administration, the Administrations of the Autonomous Communities and the entities that make up the Local Administration, the autonomous bodies, the public business entities and other public entities linked or dependent on them are exempt from the obligation to provide a guarantee, and the Mutual Insurance Societies for Occupational Accidents and Diseases of the Social Security in their public function of collaboration in the management of Social Security, as well as their Joint Centres and Entities, when the income is to be paid out of their respective budgets.
Article 37. Formalization of the lease.
The parties may agree in writing to the conclusion of the lease to each other.
In this case, the identity of the contracting parties, the identification of the leased property, the agreed duration, the initial rent of the contract and the other clauses that the parties have freely agreed upon shall be recorded.
Toni Marqués. Real Estate specialist
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