Over the last year Hudson International Properties and other agents have seen a drastic increase in the number of owners loosing their homes due to non payment and eventual repossession. In many cases owners have continued to rent their properties and "pocketed" the rent leaving their tenants to face harasment and possible eviction through no fault of their own. Often these tenants are foreigners living in Spain with little knowledge of their legal rights or the legal system and property laws in Spain.

Louise Cant from Hudson International Properties states that " new clients enquiring aboutlong term rental properties are asking for details of the owners financial status and also proof that their mortgage has been paid, for Hudson International it is standard proceedure to ensure before listing a property that the owner is not facing repossession, however, private owners are still offering their properties even when repossession is imminent"

Tenants do however have rights and Under article 13.1 of the “Ley de Arrendamientos Urbanos” it is stated:

“Si durante los cinco primeros años de duración del contrato el derecho del arrendador (landlord) quedara resuelto por (…) la ENAJENACION FORZOSA DERIVADA DE UNA EJECUCION HIPOTECARIA O DE SENTENCIA JUDICIAL el arrendatario (tenant) tendrá derecho, en todo caso, a continuar en el arrendamiento hasta que se cumplan cinco años”

A rough translation Article 13.1 of Urban rental law:

If during the first 5 years of the duration of the contract, the right of the landlord to the property is removed due to mortgage or court sentence, the tenant has the right to continue the rental contract up to five years.

The tenant must however provide a valid rental contract! To safeguard against any problems it is advisable to use a reputable letting agent or property finder such as Hudson International who can also provide legal advice for existing tenants in the above situation.

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For more information on this and other rental matters please contact Louise Cant on louise@hudsoninternationalproperties.com, +34 952 882 912.