The government’s initiative to suspend the application of the controversial rental law has raised a stir in the real estate sector. Since, together with congressional lawmakers, the industry he tried, unsuccessfully, to introduce changes in the legislation to correct the distortions generated in the market. However, it also handles the assumption that the initiative just be an advertisement.
One of the first reactions came from the Professional Real Estate Association (CPI). The body that brings together the mediators of the City of Buenos Aires has issued a statement supporting him the rental law “must change, but not in any way”.
“We celebrate that the Government has the issue on the agenda but the change must be made in compliance with all the formalities”, explained Marta Liotto, group leader of that group.
The body believes that suspending the law with a Decree of Necessity and Urgency (DNU) “would necessarily have connotations of unconstitutionality”, as it would imply that the Executive assumed the right to legislate by overriding the Legislative. “This would create a feeling of even greater legal insecurity and uncertainty than we already suffer, which affects all economic activity, but especially real estate and construction investments,” the agency said in a statement.
“This is why we ask that the political initiative to finally act against the current Rental Law be translated not into an untimely act by the Executive, but into the search for consensus in Congress, which allows the draft amendment to have rapid treatment in both houses “ noted the CPI.
On the opposite side, the National Federation of Tenants said that “the law on rents – sanctioned by Congress – is still in force, modifying it by decree would be unconstitutional”, also reads a statement. The head of that group, Gervasio Muñoz, said: “it is not known what the national government will do, although there is no doubt that They have demonstrated a very serious inability to monitor compliance with the rental law. Rents are dollarizing and there are no registered contracts,” he denounced.
The rental bill was voted on by the lower house in November 2019, based on a draft by Together for Change MP Daniel Lipovetzky. It was signed into law by the Senate in June 2020 and went into effect in July 2020, during the administration of Alberto Fernández.
However, the impacts of the law on real estate activity, such as rising prices and a significant contraction in the supply of rental properties, have generated multiple projects, from different sectors, which have promoted changes to this legislation. However, so far, none have succeeded.
In the last hours the need to repeal the law is back on the table after being analyzed during a lunch shared by the president Alberto Fernández and the Minister of Economy, Sergio Massa. The official has repeatedly reiterated his willingness to amend the law. For this reason, many fear that – this time – the rumor once again it remains a mere announcement.
Source: Clarin
