1.
As is well known, among the types of urban leases we find residential leases [Subsection VII of Section VII of Chapter IV of Title II of Book II of the Civil Code] and non-housing leases [Subsection VIII of Section VII of Chapter IV of Title II of Book II of the Civil Code].
The respective contracts contain a number of mandatory rules, i.e. they cannot be derogated from by the will of the parties.
2.
In the context of urban leases for residential purposes, Article 1080 of the Civil Code states that “The rules on termination, expiry and denunciation of urban leases are mandatory, unless otherwise provided by law.”
Since opposition to renewal is a cause for expiry, it is covered by the aforementioned rule of mandatory nature.
Also in this context, Article 1096(1) of the Civil Code states that “Unless otherwise stipulated, a contract entered into for a fixed term is automatically renewed on expiry and for successive periods of the same duration or three years if this is shorter.”
[This rule applies to contracts for non-permanent housing or for special transitory purposes, namely for professional, education and training or tourist reasons, only when expressly agreed - see no. 2 of art. 1096 of the C.C. in fine and no. 3 of art. 1095, both of the C.C.].
Article 1096(3) of the C.C. states that the parties may oppose the renewal under the terms of the following articles, for which, in relation to the landlord, Article 1097 of the C.C. is relevant.
Thus, according to the provisions of Article 1097(1) of the Civil Code, the landlord can oppose the automatic renewal of the contract provided that the following conditions are met:
“a) 240 days, if the initial term of the contract or its renewal is equal to or greater than six years;
b) 120 days, if the initial term of the contract or its renewal is equal to or greater than one year and less than six years;
c) 60 days, if the initial term of the contract or its renewal is equal to or greater than six months and less than one year;
d) One third of the initial term of the contract or its renewal, in the case of a term of less than six months.”
However, Article 1097(3) of the Civil Code states that “The landlord's opposition to the first renewal of the contract only takes effect three years after the contract was signed, and the contract remains in force until that date”.
[This rule does not apply in the event of the need for housing by the landlord or his first-degree descendants, and the provisions of Article 1102 and Article 1103(1), (5) and (9) apply, with the necessary adaptations - see Article 1097(3) in fine and Article 1097(4), both of the Civil Code].
In other words, in general terms there are three distinct situations:
a) If the parties agree that the contract does not renew automatically, it will not be subject to automatic renewal;
b) If the parties do not agree, the lease will be subject to renewal for successive periods of the same duration as the contract, or three years if the duration is shorter;
c) If the parties agree that the contract will be subject to automatic renewal, regardless of the agreed duration of the contract and renewal, the landlord's opposition to the first renewal of the contract will only take effect after three years have elapsed since it was concluded, and the contract will remain in force until that date [i.e. in the case of a one-year contract, renewable for equal periods of time, after it has been renewed twice].
3.
In the case of urban leases for non-housing purposes, Article 1110 of the Civil Code states that “The rules relating to the duration, termination and opposition to the renewal of leases for non-housing purposes are freely established by the parties and, in the absence of a stipulation, the provisions relating to residential leases shall apply, without prejudice to the provisions of this article and the following”.
With particular relevance, paragraph 3 of the aforementioned article 1110 states that “Unless otherwise stipulated, the contract entered into for a fixed term is automatically renewed on its expiry and for successive periods of the same duration or five years if this is shorter [without prejudice to the provisions of paragraph 2 of article 1096, under the terms already mentioned in 1.].
Article 1110(4) of the Civil Code states that “During the first five years after the start of the contract, regardless of the stipulated term, the landlord cannot oppose renewal.”
In other words, we find here again, and in general terms, three different situations:
a) If the parties agree that the contract does not renew automatically, it will not be subject to automatic renewal;
b) If the parties do not agree, the lease will be subject to renewal for successive periods of the same duration as the contract, or five years if the duration is shorter;
c) If the parties agree that the contract will be subject to automatic renewal, regardless of the duration of the contract and the renewal agreed, the landlord may only oppose the renewal after the lease has been in force for five years.
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