SPAIN Law and Practice Contributed by: Marta González-Llera, Toni Barios, Jorge del Castillo and Rafael Baena, Cases & Lacambra
that purchaser fulfils the requirements laid down in Article 34 of the Spanish Mortgage Law. In practice, it is not usual to register lease agree - ments in Spain since, in order to register the lease, the agreement must be notarised as a public deed (ie, implies notary and registry fees and the payment of the stamp duty tax). 6.21 Forced Eviction The landlord may force the tenant to leave if the lease agreement has been terminated for any reason. The estimated time is usually over six months. 6.22 Termination by a Third Party In the strict sense, a lease agreement may not be terminated by a government or a municipal authority. However, if a public authority orders the closure of the premises where the specific economic activity is carried out due to non- compliance, eg, with certain measures regard - ing occupational hazards, then by virtue of this, as well as in accordance with the clauses of the contract, the contract may be terminated. 6.23 Remedies/Damages for Breach The owner may collect, in addition to the rent outstanding up to the date of termination of the lease, the compensation corresponding to the cost incurred by the landlord in restoring the property to the condition in which it was origi - nally leased. Likewise, additional penalties may be estab - lished for non-compliance with the minimum term of the lease. In this regard it is customary to pledge additional guarantees to ensure the payment of additional rents or indemnities in the event of early termination of the contracts (sub - ject to a limit in the case of residential leases).
On the contrary, in housing contracts, the Urban Lease Law establishes that only the first six months of the agreement will be mandatory for the lessor, so that the establishment of any addi- tional penalty would be contrary to this rule. 7. Construction 7.1 Common Structures Used to Price Construction Projects The most common structures used to price con - struction projects are as follows. • A fixed price – the price shall be considered as a lump sum, fixed, and closed pursuant to the definition in Article 1,593 of the Spanish Civil Code. In this case, the contractor shall not be entitled to claim a price increase, even if the actual costs and expenses result in a sum higher than budgeted. However, depend - ing on the contract, the lump-sum price may be subject to review in particular circum - stances. • A unit price – a price is agreed by means of a unit or quantity or unit prices per piece or based on a module (ie, per unit of work or unit of measurement). • A price agreed based on the costs incurred and duly proved by the contractor in the execution of the works, to which a spread is added in favour of the contractor. 7.2 Assigning Responsibility for the Design and Construction of a Project Act 38/1999, of 5 November 1999, on Building Development (LOE) establishes certain obliga - tions and liabilities which may be involved in a construction project. In this respect, the “building agents”, as defined in the LOE, are all the individuals or legal enti -
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