The news on the rejection by the National Senate of the mega DNU promoted by the Government, which provides for the repeal of the Rental Law, has raised concerns among tenants and landlords about what will happen with the contracts signed in recent months, if the official initiative does not prosper.
One of the questions is if it will return to its previous state for the law to be repealed. And also what will be the situation of the contracts signed from when President Javier Milei sent the DNU to Congress until today.
This all stems from the controversial DNU included the total repeal of law 27,551, sanctioned in July 2020, together with the changes introduced in October 2023 (Law 27.337).
Evidently there is fear in the real estate market that this would imply a return to the previous state a return to the decline in supply, as has happened in recent years with the application of the law and which, moreover, began to be revoked in recent months.
According to a private analysis by Real Estate Monitor, Rental supply saw a 60% rebound. in the city of Buenos Aires, compared to January 2023 numbers.
Furthermore, according to the Zonaprop portal, there was a slowdown in publication prices at the start of contracts, with increases recorded in recent months lower than 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 it The DNU remains in force until it is dealt with again by the Chamber of Deputies. Now, what will happen to contracts signed after the DNU comes into force?
Since the entry into force of the decree, the previous law has become null and void and rental contracts have returned to being governed by the rules of the National Civil and Commercial Code.
However, some changes have been introduced that provide more flexibility and allow this the parties agree freely 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, all in a mutual agreement between owners and tenants.
Now, what will all this become? What will happen to the rental contracts in force at the DNU if they are rejected at Deputies?,
“The law does not apply retroactively unless expressly provided,” says Enrique Abatti, a lawyer and president of Argentina’s Chamber of Landlords. The manager explains that this is a modification or repeal of the law or its new implementation It does not affect ongoing contracts. For example, for those who signed before the DNU, current contracts will remain in force.” confirms Abatti.
The same thing happened when the rent law was passed in July 2020 and then in October when the changes were introduced, the contracts that were in force retained their conditions until they expired. And this will happen with those that were signed with the repealed law and according to the norms of the Civil and Commercial Code with free agreements between the parties in case the DNU is rejected in Congress and the controversial rent law is returned.
According to Abatti, the fate of the DNU will have better luck in the Chamber of Deputies, where the governing party has a better chance of approving it by majority, which did not happen in the Senate.
Meanwhile, according to Abatti, There are many people anxious to conclude their contracts these days, foreseeing a possible fall of the DNU also in the Deputies. “Which I don’t think will happen,” she confirmed.
Estate agents insist that it is important the new contracts are 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.
The new legislation established after the Milei mandate, while exempting contracts still in progress from the previous legislation, provides among other things:
- Payment and update currency: The fees may be established in legal currency or in foreign currency, at the free discretion of the parties.
- Time: Leases for permanent housing, with or without furniture, have a term of two (2) years; and for the remaining destinations (rental of offices or premises), three (3) years.
- Expenses: Tenants are required to pay ordinary and extraordinary fees.
- Warranty: anyone can request it and security insurance is universalised.
SN
Source: Clarin
