ANDORRA Law and Practice Contributed by: Elena Redondo, Albert Hinojosa and Marc Ambrós, Cases & Lacambra
must be the same as the management’s company auditor). Moreover, distribution, management, subscrip - tion and reimbursement fees (for the manage - ment company) and depositary fees must also be considered and costs arising from the publi - cation of the collective investment scheme pro - spectus (simplified and complete form). 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time The Andorran regulatory provisions recognise a lease agreement as commercial as long as it allows any natural or legal person to occupy and use a real estate for a limited period without the tenant having an obligation to purchase it. 6.2 Types of Commercial Leases The Andorran regulatory provisions do not establish any differentiation between commer - cial leases. In this vein, commercial leases have the purpose of conducting a commercial, indus - trial, professional, logistics or teaching activity, as well as other purposes. 6.3 Regulation of Rents or Lease Terms Unless a law stipulates otherwise, the princi - ple of freedom of contract between/among the parties governs in commercial leases. Without prejudice to the principle of freedom of contract and pursuant to the Andorran provisions, the maximum length for a commercial lease agree - ment is four years. Rent is freely agreed upon between the land - lord and the tenant. A rent adjustment, if agreed between the parties, cannot be carried out more
than once per contractual year. Furthermore, it is the use of variation experienced by the general Consumer Price Index during the previous cal - endar year based on the income paid when the right to adjust came into being. However, a fixed minimum income can be estab - lished and increased according to turnover or operating income. In this scenario, the period during which the tenant must provide the land - lord with business accounts must be agreed. If the tenant does not provide the landlord with the business accounts, the landlord is entitled to ter - minate the contract and claim the corresponding compensation for damages suffered. Any other adjustment system agreed upon between the parties is void. 6.4 Typical Terms of a Lease The length of a lease term is agreed upon by the parties, but it cannot be less than four years. If a term is not agreed by the parties, or if a term lower than the legal minimum is agreed, the lease shall be deemed to be for a four-year term. Once the minimum term has expired, the agree - ment is tacitly extended for periods of one year unless a party notifies the other of its willingness to resolve the agreement, with a minimum notice of three months before the end of the principal term or any of its extensions. The landlord is obliged to carry out the neces - sary repairs so that the tenant can continue car - rying out the activity for which the real estate was leased. The tenant is obliged to carry out the repairs that are the result of wear and tear due to normal or abnormal use of the real estate or its facilities or services. The rent is paid in the manner agreed by the parties in the agreement. In the absence of such
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