Lease, contract term and communications.

Opposition to the renewal (or termination) of a tenancy agreement is simple, but it requires compliance with rules, notably as regards deadlines.

Communication of the complaint

When one of the parties wants to terminate a lease, it must communicate that intention to the other part in writing and by registered letter. This letter must include the identification of the sender, the consignee and the reasons for termination. The sender must also keep a copy of the letter sent.

The damages paid by landlords to tenants following the termination of the lease have to be declared in IRS and are subject to tax, unless the landlord wants to inhabit the house, do works or demolish, they are exempt from tax.

Ways to Terminate

The period of notice of the intention to terminate the contract varies according to the duration of the contract. The law also stipulates another form of termination called “opposition to renewal of contract” which also has different deadlines depending on the duration of the agreement and the initiative from the landlord or tenant.

Automatic renovation

1. All lease agreements entered into for a specified period of time, shall automatically renew their term and for successive periods of equal duration, unless otherwise stated in the contract.
2. There is no possibility of automatic renewal in contracts concluded for a term not exceeding 30 days, unless otherwise stated in the contract.
3. Either part may oppose renewal.

 

 

Opposition to Renewal – Deadlines for communication

The notice of termination of a lease agreement will depend on the initial term of the agreement or its renewal and whether it is the landlord or tenant to terminate.

Landlord

When the landlord who does not want to renew the contract must notify the tenant of this intention at least 240 days in advance when the initial duration of the same or its renewal is equal to or greater than six years. If the initial duration of the contract or renewal is equal to or greater than one year and less than six years notice must be given 120 days in advance.

In the case of contracts with initial duration or renewal of six months or more and less than one year, prior notice must be sent 60 days in advance. This period shall be reduced to one third of the duration of the contract where this is less than six months.

Tenant

If the tenant wants to leave the property the deadlines for communication are shorter, going to 120 days when the duration of the contract is equal to or greater than six years. The notice period is reduced to 90 days, when the duration of the contract is equal to or greater than one year and less than six years.

For contracts with a duration of six months or less and less than one year, the notice of opposition must be sent 60 days in advance.

When the duration is less than six months, the deadline for communication is equal to that reserved for landlords, that is one third of the term.

 

Justifications for resolution

If tenants do not need a reason to terminate a lease, the same does not apply to landlords. The law states that the property owner needs to justify termination:

1. By necessity of the property for own housing or descendants in the first degree;
2. Or demolition / completion of remodelling or restoration works that require the vacancy of the property or that have a cost of 25% of the patrimonial value of the same. The landlord will have to deliver the necessary proof of the works in the chamber and pay compensation to the tenant equivalent to two years of income (the indemnification must be pay half after the confirmation of the complaint and the rest in the act of delivery of the property);

Denunciation of the landlord must be made by communication to the lessee at least six months in advance of the date set aside for the vacancy, and, failing which, the grounds for denunciation must be stated and accompanied by the following documents:

1. Proof that a process of prior control of the urban operation to be carried out has been initiated;
2. Term of responsibility of the author of the project, stating that the urban development operation meets the legal requirements of a demolition or deep remodelling or restoration project and the reasons that compel it to be vacated;
3. Copy of the elements delivered together with the request for prior control, as well as a document issued by the municipality that certifies the delivery by the owner of these elements, in cases in which works of alteration or extension are in question.

The denunciation is confirmed, under penalty of inefficiency, by notifying the tenant, proof of the granting of the request, in the case of urban operation subject to an administrative license, or proof that the claim was not rejected, in case of urban operation subject to communication Preview.

3. The possibility of termination of the contract if the landlord needs to live in the house. Another reason for this termination is in case of works when they imply the disappearance of the dwelling. Otherwise, the contract is suspended during the duration of the works, and the tenant has the right to be rehoused in equivalent housing.

In these situations, the landlord is exempt from paying IRS for the damages to the tenants. For tenants who have been living in the house for more than 15 years, the contract can only be terminated in case of demolition or by deep works that force them to leave.

Arrears

Landlords can also denounce contracts for non-payment of rent. According to the amendments to the law, renters now have a tolerance of three months of rent in a row or interpolated, before they can be evicted by landlords. Only after three months without receiving rent is the landlord can terminate the contract and start the eviction process.

Right to transmission of dead

The right to be transferred on death shall not occur if, at the time of the death of the lessee, the holder of that right has another house, owned or leased, in the area of the municipalities of Lisbon or Porto and its neighboring areas or in the respective municipality for the rest of the municipality. Parents.

In the lease for non-residential purposes, the lease ends with the death of the original tenant, unless a successor who, for more than three years, exercises a liberal profession or exploits, in common with the original tenant, an on-site establishment.