## [Corporate/Litigation Updates 2-2013](/en_GB/new/corporatelitigation-updates-2-2013) # Corporate/Litigation Updates 2-2013 06 / 12 / 2013 - - [](https://www.linkedin.com/sharing/share-offsite/?url=https://www.garrigues.com/en_GB/new/corporatelitigation-updates-2-2013) - []() - []() [Download Corporate/Litigation Updates 2-2013 ![Download](/sites/default/files/inline-images/flecha-abajo.png)](/sites/default/files/noticias/files/Corporate-Litigation-Updates-2-2013_1.pdf) Previous Next LAW 4/2013, OF JUNE 4, 2013, ON MEASURES TO INCREASE THE FLEXIBILITY OF AND PROMOTE THE HOUSING RENTAL MARKET June 5, 2013 saw the publication in the [Official State Gazette (BOE) of Law 4/2013, of June 4, 2013![Abre ventana nueva](/sites/default/files/migracion/noticias/en/images/newWindow.gif)](http://www.boe.es/boe/dias/2013/06/05/pdfs/BOE-A-2013-5941.pdf "Abre ventana nueva"), on measures to increase the flexibility of and promote the housing rental market (the “Law”), the overriding aim of which is to make the rental market more flexible and thus meet the need to make it more dynamic, by seeking to strike the necessary balance between the need for rented accommodation and the safeguards to be offered to lessors in order to make such accommodation available on the rental market. In order to meet the above mentioned aim, the following key aspects of Urban Leasehold Law 29/1994, of November 24, 1994 (the “LAU”) have been amended: (i) the applicable legal regime, strengthening freedom of contract and giving priority to the autonomy of the parties; (ii) the term of the lease, reducing the mandatory extension from five to three years and the implied extension from three years to one year; (iii) the circumstances in which the property can be recovered by the lessor for use as permanent residence; and (iv) the establishment of a break clause in favor of the lessee after the initial six months of the term of the agreement have elapsed and at least thirty days’ advance notice is given to the lessor. Moreover, the Law sets in place a different legal regime for leases depending on whether or not they have been registered at the Property Registry, meaning that: (i) unregistered leases of urban properties cannot be effective against third-party purchasers registering their rights; and (ii) any third party buying a residential property that meets the requirements laid down in article 34 of the Mortgage Law cannot be adversely affected by the existence of an unregistered lease. Furthermore, in order to protect the quality of tourist destinations, in view of the significant increase in the use of private accommodation for tourism, which may be concealing unauthorized lettings or unfair competition, the reform specifically excludes this type of leasehold arrangement, which is governed by industry-specific legislation or, failing that, the regime governing seasonal leases. Moreover, so as to tackle more ad hoc issues giving rise to problems in eviction proceedings, an amendment has been made to Civil Procedure Law 1/2000, of January 7, 2000, (the “LEC”), making eviction conditional on the absence of opposition by the defendant. Meaning that, should the defendant fail to attend the payment demand or appear to contest or settle, the court clerk will make an order deeming the case to have ended and the eviction will take place. We now look in more detail at these amendments. **1. AMENDMENTS TO URBAN LEASEHOLD LAW 29/1994, OF NOVEMBER 24, 1994** **2. REGULATION OF THE EFFECTS OF REGISTRATION OF LEASE AGREEMENTS AT THE PROPERTY REGISTRY** **3. AMENDMENTS TO CIVIL PROCEDURAL LAW 1/2000, OF JANUARY 7, 2000** **4. OTHER AMENDMENTS** **5. ENTRY INTO FORCE** --- This publication is provided for information purposes only and does not constitute legal advice or advice of any other kind. It does not seek to offer a comprehensive summary of the legislation and developments to which it refers nor to cover all published material, but rather to provide an overview of selected topics. It is therefore recommended that the official texts be consulted and specific professional advice be sought. Garrigues does not accept any liability for the use made of this information and assumes no obligation to update it after publication. --- ### Contact ![Foto del socio](/sites/default/files/styles/medium/public/team/photo/Lorenzo_Clemente_Naranjo_20230524.jpg?itok=IhlSLSJd) [Lorenzo Clemente](/en_GB/team/lorenzo-clemente-naranjo) ![](/themes/custom/garriguestheme/img/iconos/email-contacto.svg)[Contact]() - +34 91 514 52 00 [Madrid](https://www.garrigues.com/en_GB/office/madrid) [Find more professionals](../team) ### Related services - [Corporate and M&A ](/en_GB/services/corporate-and-ma) - [Dispute Resolution: Litigation and Arbitration ](/en_GB/services/dispute-resolution-litigation-and-arbitration) - ## Find a publication Select service Administrative and Constitutional Law Agribusiness and Food Automotive Banking and Finance Corporate and M&A Corporate Governance and Sustainable Development Criminal Law and Internal Investigations Data Economy, Privacy and Cybersecurity Dispute Resolution: Litigation and Arbitration Energy EU and Antitrust Law Family Business Fashion Law Financial Regulation G-advisory Human Capital Services Infrastructure Insurance Intellectual Property Labor and Employment Life Sciences and Healthcare Media and Entertainment Planning, Zoning and Environment Private Equity Real Estate Restructuring and Insolvency Securities Markets Sports Startups & Open innovation Sustainability Tax Technology, Communications and Digital Tourism and Hotels Transport, Logistics and Shipping Facet Services detail Facet Services detail Select type of content Publications Newsletters Garrigues collection Laws: amendments at a glance News Facet Publication type detail Facet Publication type detail Min Max ## News search engine