The outbreak of the pandemic caused by COVID-19 affected, as with so many other aspects of the world’s legal, social and economic reality, issues regarding housing, and, specifically eviction procedures and the need to protect those lessees who are vulnerable in the face of such legal actions.

In this respect, in our country, we may outline the contents of Royal Decree Law 11/2020 of 31st March and the recent Royal Decree Law 37/2020 of 22nd December which modifies article 1 of the former and adds a new article 1 bis.

The most notable points of the amendment, are succinctly:

  • The suspension does not only refer to evictions and/or vacation orders derived from the expiry date of the term or the non-payment of expected rents established in point number 1º of article 250.1 of the Civil Procedures Act; but also applies to cases of precariousness, summary protection of possession and the protection of registered rights in rem, although with some differences in the processing of the application.
  • The paralysation affects the processes of eviction and/or vacation orders during the current state of alert, that is to say, until 9th May 2021.
  • The suspension currently refers to those lessees of a main residence who find themselves in a situation of economic vulnerability which makes it impossible for them to find alternative accommodation for themselves and those who live with them. This situation may arise from although it does not directly derive from the effects of COVID-19; this being a new development in respect of the previous system under which the situation of vulnerability had to be a consequence of the effects of the expansion of COVID-19. Consequently, protection is

extended, given the direct and indirect consequences caused by the pandemic on the economy.

Likewise, another important new development to point out is the protection granted to the other party in the legal relationship derived from the lease, since a right to compensation for owners and lessors is now foreseen. The right to this compensation arises when the competent administration, within three months from the date upon which the social services issues its report indicating the appropriate measures to address the lessee’s situation of vulnerability,  has not taken such measures.

The application for said compensation may be filed up to one month following the cease of the state of alert, that is to say until 9th June 2021.

The compensation shall consist of the average value corresponding to housing in the area wherein the property is located. This value shall be determined on the basis of the reference index of the rental price of housing or other representative references of the rental market, as well as the current expenses of the property which the lessor bears and is able to demonstrate; this is during the period between when the suspension is agreed and the moment upon which the suspension is lifted by the Court or when the state of alert ends.

As an exception to the above, if said value were higher than the rent being received by the lessor, the compensation would consist of the rent not received during the aforementioned period as well as expenses.

This right also corresponds to property owners who demonstrate that the suspension of an eviction has  caused them financial damage due to the property being for sale or rent prior to the entry into the property by the lessee who is to be evicted. The amount and the term for the application for the compensation is the same for the lessors in this case.

 

 

Jaime Madero

Vilá Abogados

 

For more information, please contact:

va@vila.es

 

15th January 2021