Prescription of rental income

Introduction

The term established to claim the lease rent (housing or premises) will expire after 5 years. This is stipulated in article 1966.2 of the Civil Code. However, in Catalonia it will be 3 years according to article 121.21 of the Civil Code of Catalonia. Therefore, the rents that exceed these years, for each case, will make it impossible to claim rents from the lessor. This is only if the limitation period has not been interrupted.

What is the extinctive limitation period?

The statute of limitations is the manifestation of how time influences legal relationships and subjective rights. Throughout it they are born, exercised and die.

We can find two institutions under the term of the statute of limitations: the statute of limitations and the “usucapion”.

In the present article we will detail what is the extinctive statute of limitations. Since it is the one that interests us to continue advancing in the object of the article.

The extinctive statute of limitations produces the disappearance of an action, of a credit or of a Real Right. This is so for not giving adequate signs of life during the term established by law. This is based on a negative fact that is not exercising the right of the holder of the right. Therefore, we could summarize it as the inaction on the part of the holder of the right. It is also known as the “silence of the legal relationship”.

Si te ha interesado este artículo no dudes en leer:

Termination of business premises rental agreement

There are as many reasons for a tenant of premises to need to terminate his contract as possible causes of the disappearance of his business. The generalized drop in sales, for whatever reason, is the main reason that makes it impossible for you to cope with the rent.

The statute of limitations in the Spanish Civil Code

Article 1961 provides that actions shall be barred by the mere lapse of time established by law.

In addition, Article 1966 fixes this period of time. By which the price of the leases will prescribe after 5 years whether they are urban or rustic properties.

The time will begin to be counted from the day on which they can be exercised according to article 1969.

Finally, the statute of limitations can be interrupted, which means that once interrupted, the term will start again. This is established in Article 1973. For example, it will be interrupted by the extrajudicial claim of the lessor or by the exercise before the courts.

But in our Country there is not only this civil legislation, but we can find many others. One of the most complete is the Catalan one.

The statute of limitations in the Catalan Civil Code

The Catalan Civil Code presents some differences with respect to the Spanish Civil Code, we will see below the most relevant ones.

The period of prescription of the rent in this case will be 3 years (art. 121-21). Currently this term is more logical due to the duration of the contracts signed today.

The contracting parties may also agree to lengthen or shorten the limitation period (art. 121-3). As long as it does not generate defencelessness to the parties. And that the term is neither less than half nor more than twice the legally established one. The time limits will continue to be imperative in all cases.

All this will be applicable to all the rentals of properties in the Autonomous Community of Catalonia.

Example

A tenant in Madrid abandons a property for which he owes monthly payments from January 2021 to June 2021. The landlord, being subject to the Spanish Civil Code, will have a period of 5 years to claim the rent. Thus, he will have until January 2026. Let’s remember that the 5 years will start from the due date of the first non-payment of the rent.

Amounts assimilated to rent

Lease agreements sometimes include other payment obligations. These obligations are concepts such as utilities (water, electricity, gas) or taxes (IBI).

Consequently, these amounts assimilated to the rent do not have the character of rent, but of an expense.

The judges do not agree on the maximum period for claiming the rent in order for the statute of limitations not to run. For the cases in which the lessor wants to claim the amounts of the receipts assimilated to the rent.

The 13th Section AP Barcelona and the AP Madrid hold that the claim for these amounts is 15 years.  Although it is a minority who defend this term.

Because the majority considers that the limitation period is five years. Based on article 1966.3 CC. Provided that the concepts are periodic and correspond to the maintenance and use of the property.

Conclusions

• The term to claim the rent of the rent will prescribe after 5 years or after 3 years in Catalonia.
• The extinctive prescription is the disappearance of an action, credit or real right because the holder does not exercise his right.
• As for the amounts assimilated to the rent, some hold that the statute of limitations is 15 years and most hold that it is 5 years.

If this article has been of interest, we also suggest you to read the following article published on our website:

Prescription and Limitation: Differences. Deadlines. Explanatory table.

Tax Prescription

The different forms of mortgage cancellation