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Harsh reaction from the real estate sector to the possible return of the rental law - La Nacion Propiedades
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Dura reacción del sector inmobiliario ante la posible vuelta de la ley de alquileres
El Senado rechazó el DNU que incluía la derogación de la ley de alquileres, y ahora lo tiene que tratar Diputados; qué pasa con los contratos nuevos de alquiler que se firmaron desde fines de diciembre y cómo reaccionó el sector
www.lanacion.com.ar
March 15, 2024
The Senate rejected the DNU that included the repeal of the rental law, and now Deputies have to deal with it; What happens with the new rental contracts that were signed since the end of December and how the sector reacted
By Veronica Ruby
The Senate rejected the DNU of President Javier Milei and the developers and real estate agents spoke out against the rental law coming into force again
Last night the Senate rejected the Government's DNU that came into force on December 29, 2023 and which includes, among many other measures, the repeal of the rental law 27,551 passed in June 2020 and its modification in October 2023.
The echoes in the real estate sector were immediate. The Business Chamber of Urban Developers (CEDU) expressed its disagreement with the senators' decision and expressed its hope that the Chamber of Deputies will approve the DNU and not go back with the decision of the repealed law.
“Sector entities linked to the construction and urban development industry express our concern about the immediate impact that this measure may have on the residential rental market, which in recent months has been normalizing. Our position is to support the repeal of Law 27,551 , which has proven to be absolutely ineffective until a new, superior law is agreed upon. We make this position public so that the corresponding authorities can take it into consideration when making decisions that involve access to housing for many Argentines ,” says the statement issued by the CEDU and to which institutions such as the Association of Housing Entrepreneurs (AEV) adhere. ), Central Society of Architects (SCA), and entities linked to the construction and urban development of Mar del Plata, Santa Fe, Entre Ríos, Corrientes, Salta, Province of Buenos Aires, Córdoba, Tucumán, La Plata, Argentine Northwest, among other.
For its part, the Argentine Real Estate Chamber also expressed its concern “about the impact on the rental market throughout the country” and added that “the result of going back to the regulations prior to the sanction of the DNU would be an abrupt restriction of “the offer that would result in enormous harm to society as a whole .”
The Senate's rejection of the DNU
The Senate met yesterday to discuss the decree of necessity and urgency 70/23 of deregulation of the economy, in a scenario of strong tension between the Casa Rosada and Vice President Victoria Villarruel due to her decision to accept the DNU debate knowing that the opposition would have the votes to reject it .After a heated debate in the chamber, the Senate ruled against the DNU by 42 negative votes against 25 positive votes and four abstentions. Now the debate must take place in Deputies to accept or also reject the DNU of December 2023.
The vote in Senators was 42 votes against the DNU and 25 in favor
The Casa Rosada had sent a statement yesterday in which it maintains that moving against the decree would imply “a serious setback in the rights and needs of the Argentine people.”
One of those setbacks would be to return to the repealed rental law since the DNU that President Javier Milei signed a few days after taking office in December - and which came into force on the 29th of that month - included the total repeal of the sanctioned law 27,551 in July 2020 and its changes introduced in October 2023.
Since the DNU came into force, the law became ineffective and the rental contracts returned to the regulations of the Civil and Commercial Code of the Nation, with some modifications that mean the free agreement between the parties to define the duration of the contract, the currency in which it will be paid, the type of index that will be taken for the adjustments, the periods in which said adjustments will be made, the type of guarantee that will be presented, among other issues of common agreement between owners and tenants.
Vice President Victoria Villarruel sought to delay the treatment of the DNU in the Senate but did not succeed
Also from then on, the market began to recover and the positive impact of owners and tenants not having to be tied to a three-year contract with annual adjustment by the ICL index published by the Central Bank in a context of monthly inflation was notable. . The contracts these days are mostly made for two years, in pesos, with quarterly or four-monthly adjustments and using the Consumer Price Index (CPI).
Little by little, owners began to make their properties available on the market again and, more than two months after the repeal of the rental law, the figures are eloquent: the supply of housing in CABA increased by 106% since December . Publication prices also slowed down and the increases recorded in recent months are below inflation. In short: more supply and lower prices , what seemed impossible in the rental market in the last three years was achieved in a few months with the repeal of the law.
The statement issued by the Argentine Real Estate Chamber in rejection of the senators' vote, expresses in this sense that " since the sanction of the DNU, the supply of rental properties has doubled and values have increased well below inflation , thus benefiting to millions of tenants thanks to freedom of contract.”
Parque Centenario, the microzone of Caballito where the rental supply increased the most in recent months with the repealed law
What happens to contracts already signed if the DNU is rejected
Housing rental contracts returned by DNU to the terms established under the Civil and Commercial Code as before July 2020, with some modifications introduced. But, all those that were signed before the DNU under the regulations that were in force and due to the non-retroactivity of the law maintain the conditions under which they were signed until they end, whether by termination or termination.Therefore, the DNU does not affect contracts signed under the rental law, both the one enacted in July 2020 (27,551), and its modification on October 18, 2023 (27,737).
Now, if the DNU is rejected in Congress by both chambers and the law is again in force, the same will happen with the contracts signed since December 29 under the DNU and the Civil and Commercial Code.
That is to say, tenants and owners will be divided for a long time between those who have contracts under the 2020 law , those who have contracts under the law with changes in 2023 , and those who sign contracts under the new conditions of the Civil and Commercial Code established by the DNU .
All contracts already signed remain valid and in force until they end
In this context, a question resonates between owners, tenants and real estate agents. What will happen to the rental contracts in force from the DNU if it is rejected? The question fortunately has a simple and linear answer: “The law is not applied retroactively unless expressly provided,” says Enrique Abatti, lawyer and president of the Chamber of Property Owners of Argentina. In other words, a change or repeal of the law or its new implementation does not affect ongoing contracts.
The expert explains that “the contracts in place will remain in force . ” The same thing happened when the rental law was passed in July 2020 and then in October when there were changes, 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.
When all contracts expire, they have two alternatives : extend or start a new contract. In the meantime, they are valid until completion.
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