SPAIN Law and Practice Contributed by: Marta González-Llera, Toni Barios, Jorge del Castillo and Rafael Baena, Cases & Lacambra
6.10 Payment of Utilities and Telecommunications
accessories (eg, garage, storage room), and the tenant may not carry out works that decrease the stability or safety of the dwelling 6.14 Specific Regulations Urban leases are regulated by the Urban Leases Act (as amended by Royal Decree Law 7/2019) and, subsidiarily, the Spanish Civil Code. Urban leases are divided between residential and non- residential leases (see 6.1 Types of Arrange- ments Allowing the Use of Real Estate for a Limited Period of Time ). Rural leases are regulated by the Spanish Rural Leases Act ( Ley de Arrendamientos Rústico s), which applies to leases such as the lease of a farm, including all machinery and the right to cul - tivate crops, etc. In default of express regulation, the Spanish Rural Leases Act, the Civil Code and custom and practice, apply. 6.15 Effect of the Tenant’s Insolvency The Urban Lease Act does not expressly provide as a cause for termination of lease agreements the insolvency of the tenant. The Spanish Insolvency Act states the general principle of the continuation of the lease agree - ments in the event of the tenant’s insolvency. Any outstanding payment obligations under the lease agreement shall be paid to the landlord directly against the insolvency estate. In the same respect, the Insolvency Act establishes the nullity of the clauses of the contract that set the termination solely due to the declaration of insolvency. 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations The Urban Lease Act states that, prior to tak - ing possession of the leased property, the ten -
Utilities and telecommunication expenses, including taxes, are usually borne by the tenant. No legal restrictions apply to the agreement between the parties to state the landlord’s ability to recover service charges from tenants. In most cases, the tenant enters into a contract directly It is common practice that the landlord sub - scribes to an insurance policy to protect the property itself. It may also freely subscribe to a rent payments recovery insurance policy. These insurance policies may be borne by the tenant if expressly agreed. 6.12 Restrictions on the Use of Real Estate The tenant is obliged to use the leased property as a “diligent parent”, assigning it to the agreed use. This rule applies to residential and commer - cial leases. Furthermore, the landlord is entitled to terminate the lease agreement in the case of annoying, unhealthy, harmful or unlawful activi - ties on the leased property or if the tenant car - ries out activities forbidden in the by-laws of the community of owners. with the utility services. 6.11 Insurance Issues Concerning the commercial lease agreements, it is common practice that parties may agree on the possibility of terminating the contract in the event of the impossibility of obtaining an open - ing/activity licence. 6.13 Tenant’s Ability to Alter and Improve Real Estate The tenant is not entitled, without the written consent of the landlord, to carry out works that modify the configuration of the dwelling or its
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