In accordance with Law 29/1994, of November 24, on Urban Leases, modified by Royal Decree-Law 7/2019, of March 1, on urgent measures regarding housing and rental:
– To the conclusion of the contract, the requirement and provision of a deposit in cash in an amount equivalent to:
- 1 monthly rent in the rental of houses.
- 2 rent monthly installments in the lease for different use of the house.
– During the first 5 years of the contract (or during the first 7 years if the leasing party is a legal entity) the bond will not be subject to updating. However, each time the lease is extended, the leasing party may demand that the deposit be increased, or the lessee that decreases, until it becomes equal to 1 or 2 monthly installments of the current rent, as applicable, at the time of the extension..
– The updating of the bond during the period of time in which the term agreed for the lease exceeds 5 years (or 7 years if the leasing person is a legal entity), will be governed by the provisions stipulated for that purpose by the parties. In the absence of a specific agreement, the agreed upon update of the rent will be presumed also desired for the update of the deposit.
– The balance of the deposit in cash that must be returned to the lessee at the end of the lease, will accrue the legal interest after 1 month from the delivery of the keys by said lessor without the restitution becoming effective.
– The parties may agree on any type of guarantee of compliance by the lessee party of their obligations additional to the bond in cash. In the case of the lease of housing, in contracts of up to 5 years, or up to 7 years if the leasing party is a legal entity, the value of this additional guarantee may not exceed 2 monthly installments of rent.
Deposit of bonds.
The Autonomous Communities may establish the obligation for the urban land leaseholders to deposit the amount of the bond, without accrual of interest, at the disposal of the Autonomous Administration or the designated public body until the expiration of the appropriate contract.
If after 1 month from the end of the contract, the Autonomous Administration or the competent public entity did not proceed to the refund of the amount deposited, this will accrue the appropriate legal interest.
The lease contracts submitted to the Urban Leasing Law (Law 29/1994, of November 24) celebrated before March 6, 2019, will continue to be governed by the regulations applicable at that time. That is, this version of Law 29/1994 would be applicable.
When the parties agree and it is not contrary to the legal provisions, pre-existing contracts (prior to March 6, 2019) may be adapted to the current version of Law 29/1994.
- On December 18, 2018, Royal Decree-law 21/2018, of December 14, was published on urgent measures regarding housing and rent. Among the modifications included affections to Law 29/1994.
- Subsequently, on January 24, 2019, the Resolution of January 22, 2019, of the Congress of Deputies was published, ordering the publication of the derogation agreement of the aforementioned Royal Decree-law.
- Therefore, in the period between December 19, 2018 (date of entry into force of the Royal Decree-law) and January 24, 2019 (date on which the Agreement to repeal said Royal Decree-law was published), to the contracts signed in that interval, this version of Law 29/1994 applies.
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