The news about the rejection of the National Senate to the mega DNU promoted by the Government, which includes the repeal of the Rental Law,
raised concerns among tenants and owners about what will happen
to the contracts signed in recent months, if The official initiative does not prosper.
One of the questions is
whether it will return to the state before
the law was repealed.
And also what will be the situation of the contracts that were signed since President Javier Milei sent the DNU to Congress until today.
All of this arises because the controversial DNU included
the complete repeal of Law 27,551,
enacted in July 2020, along with the modifications introduced in October 2023 (Law 27,337).
Clearly, in the real estate market they fear that returning to the previous state will imply
a return to the drop in supply,
as has occurred in recent years since the law was applied and which, furthermore, was beginning to be reversed in recent months.
According to a private analysis by Real Estate Monitor,
the rental supply experienced an increase of 60%
in the City of Buenos Aires, compared to the numbers in January 2023.
According to the Zonaprop portal, there was also
a slowdown in publication prices
at the beginning of the contracts, with increases recorded in recent months below the inflation rate.
According to market data, in the City of Buenos Aires, it is estimated that there are approximately 12,000 homes for rent.
In any case, in the sector they explain that
the DNU remains in force until it is discussed again by the Chamber of Deputies
.
Now, what will happen to the contracts signed after the DNU comes into force?
Since the implementation of the decree, the previous law became void and rental contracts were once again governed by the regulations of the National Civil and Commercial Code.
However, some modifications were introduced that provide greater flexibility, and allow
the parties to freely agree on
aspects such as the duration of the contract, the payment currency, the adjustment index, the adjustment periods and the type of guarantee, among other aspects.
That is, everything in a mutual agreement between owners and tenants.
Now, what will all that become?
What will happen to the rental contracts in force from the DNU if it is rejected in Deputies?
,
“The law is not applied retroactively unless expressly provided,” says Enrique Abatti, lawyer and president of the Chamber of Property Owners of Argentina.
The manager explains that a change or repeal of the law or its new implementation
does not affect ongoing contracts.
For example, those who signed before the DNU, The contracts in progress will remain in force.”
confirms Abatti.
The same thing happened when the rental law was passed in July 2020 and then in October when changes were introduced, the contracts that were in force maintained their conditions until their end.
And this will happen with those that have been signed with the repealed law and under the regulations of the Civil and Commercial Code with free agreements between the parties in the event that the DNU is rejected in Congress and the controversial rental law is returned.
According to Abatti, the fate of the DNU will have better luck in the Chamber of Deputies, where the ruling party has a better chance of approving it by a majority of votes, something that did not happen in the Senate.
Meanwhile, according to Abatti,
there are many people eager to close their contracts these days,
foreseeing an eventual fall of the DNU also in Deputies.
“Which I don't think will happen,” he confirmed.
Real estate agencies insist that it is important that
new contracts be well documented.
That all agreements are written to ensure that both parties agree on all aspects and thus maintain a good contractual relationship between the parties.
Among other points, although it exempts contracts that are still in progress from the previous law, the new rules established after Milei's administration include:
Payment and updating currency:
rents can be established in legal tender or foreign currency, at the free discretion of the parties.
Time:
lease contracts for permanent housing, with or without furniture, are for two (2) years;
and for the remaining destinations (rental of offices or premises), three (3) years.
Expenses:
tenants must pay ordinary and extraordinary expenses.
Guarantee
: anyone can request it and the surety insurance is universalized.
S.N.