ANDORRA Law and Practice Contributed by: Elena Redondo, Albert Hinojosa and Marc Ambrós, Cases & Lacambra
6.22 Termination by a Third Party The termination of a lease agreement could normally take place based on either an eviction proceeding, an administrative concession termi - nation, or a ruling by the insolvency administra - tor as long as it is considered detrimental to the insolvency proceeding. 6.23 Remedies/Damages for Breach The Urban Rents Law states that, prior to taking possession of the leased asset, the tenant must deliver to the landlord a guaranteed deposit equivalent to a maximum of two months’ rent; depending on the case, this security may be replaced by a bank guarantee. Such deposit is held by the landlord to be returned to the tenant upon termination of the lease agreement against delivery of the leased asset’s keys (return of pos - session over the leased asset). The tenant and the landlord may also agree on additional guarantees to cover payment defaults by the tenant (eg, bank guarantees, specific default insurances or even upfront payment). 7. Construction 7.1 Common Structures Used to Price Construction Projects The price of construction projects may be sub - ject to different criteria: • a fixed price (where the contractor executes and releases the entire work, while the total price is satisfied at the time of receipt of the construction project); • construction project by units or measures (consists of the partial realisation of the work with the reception of partial payments); and • the construction project by administration (in which the contractor receives a percentage,
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 condi - tions expressly identified as being of essential character in the lease agreement; • any de facto or legal interference by the land - lord 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, annoy - ing or insalubrious activities affecting the landlord in any manner. Furthermore, the Urban Rents Law states that the tenant’s death will not constitute a ter - mination 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 enti - tled 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 com - mercial leases. 6.21 Forced Eviction The landlord may force the tenant to leave if there is an early termination of the lease agree - ment. The duration of eviction procedures may vary significantly, depending on the specific cir - cumstances.
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