ANDORRA Law and Practice Contributed by: Albert Hinojosa and Marc Ambrós, Cases Lacambra
interpretation of one of the events of default or chang - es in circumstance. 6.17 Right to Occupy After Termination or Expiry of a Lease Overall, the tenant does not have the right to con - tinue to occupy the leased asset after the expiration or termination of a commercial lease. Nevertheless, the Urban Rents Law provides for a tacit renewal ( tàcita reconducció ) or holdover tenancy, which takes place if the tenant stays in the leased asset more than 15 days after the termination of the lease agreement without express opposition from the landlord, whereby the lease agreement shall be automatically extended each month without any action by the landlord (or in the same term foreseen for payment of the rent). The lease agreement may also be subject to tacit extension ( pròrroga tàcita ) for one year upon termina - tion unless the landlord or the tenant gives prior notice to the other party three months before the termination or any extended period expiry date. To ensure that a tenant leaves on the date origi - nally agreed, landlords will usually conduct an ocu - lar inspection (or similar inspection mechanisms as inventories) before the tenant leaves the real estate asset. 6.18 Right to Assign a Leasehold Interest A tenant who has concluded a lease contract for a definite period has the right under Andorran regulatory provisions to lease or sublease all or a portion of the leased premises in so far as there is written approval from the landlord. Likewise, there is a prohibition against subletting by the subleased. 6.19 Right to Terminate a Lease In addition to the events described in 6.4 Typical Term of a Lease and in 6.13 Restrictions on the Use of Real Estate , breach by the tenant of the following obligations stated in the lease agreement entitles the landlord to terminate the lease agreement: • expiry of the lease agreement term; • loss or destruction of the real estate asset;
• transfer or disposal after the expiry of the legal lease agreement term (four years); • mortgage foreclosure (when the leased agreement has been formalised after the creation of the mort - gage without the mortgagor’s knowledge); • usufruct extinction (if the beneficial owner had granted the lease agreement and the tenant was aware of such circumstance); • when the real estate is declared to be in a state of ruin; and • compulsory expropriation. The tenant is entitled to terminate the lease agreement without prior notice to the landlord upon verification of the following circumstances: • breach by the landlord of contractual conditions expressly identified as being of essential character in the lease agreement; • any de facto or legal interference by the landlord in the use of the leased asset; • the landlord fails to carry out the necessary repairs to preserve the property in suitable condition for its normal use; • the landlord failing to render the services stated in the lease agreement; or • the occupant or tenant of other commercial or residential units located in the same building unit carrying out immoral, dangerous, annoying or insalubrious activities affecting the landlord in any manner. Furthermore, the Urban Rents Law states that the ten - ant’s death will not constitute a termination cause until the expiry of the term of the agreement if the spouse, ascendants or descendants who have lived together with the deceased tenant choose to continue with the lease for its agreed term. Lastly, the buyer entitled to a repurchase right ( pacte de retro ) may not evict the tenant until the expiry of the term of such repurchase right. 6.20 Registration Requirements There are no land records in Andorra, nor are there registration requirements regarding commercial leas - es.
27 CHAMBERS.COM
Powered by FlippingBook