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Javier Milei repealed the rental law: the contracts will be for two years, they can be signed in dollars and adjustments can be agreed - La Nación Propiedades
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Javier Milei derogó la ley de alquileres: los contratos serán de dos años, se podrán firmar en dólares y pactar los ajustes
El presidente anunció en cadena nacional que derogará la ley de alquileres por DNU y que los contratos podrán hacerse en moneda extranjera
www.lanacion.com.ar
December 22, 2023
The president announced on national television that he will repeal the DNU rental law and that contracts can be made in foreign currency
By: Mercedes Soriano
Javier Milei repealed the rental law through a DNU and contracts can be signed in dollars
The president Javier Milei signed a Decree of Necessity and Urgency (DNU) that will deregulate important sectors of the economy, including the market of rentals. In his first national channel, he listed a package of measures that he will deregulate and the first to be stated was the “repeal of the Rental Law so that the real estate market can function again without problems and that renting Don't be an odyssey.”
The first measure to be announced was the “repeal of the Rental Law so that the real estate market can function again without problems and so that renting is not an odyssey.”Video Capture"
Likewise, the decree would be in force from December 29 -since its publication does not establish a date and by law eight days are counted from its publication- and until the legislators analyze the DNU and decide to both endorse it and reject it in due process. “In the next few days we will call extraordinary sessions of the National Congress, we will send a package of laws asking Congress for collaboration to advance this process of change that the society chose in a context of crisis that requires immediate action,” said Milei.
In the decree, the current economic situation is considered “emergency” and thus justifies the issuance of this type of decree .
What contracts will be like under the new changes
1. The term of the rental contracts will be the one that the parties have established and, if they do not clarify it, it will be two years.
The decree clarifies that in the event that no term has been established for each type of rental:- In cases of temporary location, it will be (sic) the one established by the uses and customs of the place where the rented property is located.
- In lease contracts for permanent housing, with or without furniture, it will be two years.
- For the remaining destinations it will be three years.
In that sense, he believes that when it was imposed more than 100 years ago, “it was to prevent owners from managing the market as they please and not harm tenants”. For example, if a landlord only makes a contract for three months, the tenant would find themselves in an unstable and expensive situation.
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2. The parties may agree to adjust the value of the rentals.
Instead of using the Rental Contract Index (ICL) used by contracts signed after July 2020 or the Casa Propia index (which applied to the few contracts that were signed between last October 18 and today), tenant and owner will be able to agree on how often to update the contract.“The use of any index agreed upon by the parties will be valid, public or private, expressed in the same currency in which they were agreed. rents,” says the decree.
“If the chosen index stops being published during the term of the contract, an official index with similar characteristics published by the National Institute of Statistics and Censuses will be used if the price is set in national currency, or one that fulfills the same functions in the country. that issues the agreed payment currency,” the document clarifies.
3. Contracts may be made in pesos, dollars and other foreign currency decided by the parties.
Rents may be established in legal tender or foreign currency, as agreed by the parties. The tenant may not demand that payment be accepted in a currency other than that established in the contract.“It is necessary to respect the will of citizens to agree on the forms of cancellation of their obligations to give sums of money, without distinction of the legal tender or not of the currency that is determine, without the debtor or the judge who may intervene being able to force the creditor to accept payment in a different currency, unless otherwise agreed," says the decree.
That is to say that housing rentals will be allowed to be published and signed in foreign currency and that judges will not be able to convert the price to pesos, unless the agreement says otherwise.
It should be noted that this is not foreign to the market, since for months many contracts have been closed in dollars outside the law. “Housing had been dollarized in many parts of the country that did not handle foreign currency because inflation is uncontrolled. When it was ruled in October that it could not be done, there continued to be cases. Now I think there is going to be a move towards the dollar, unless the economy stabilizes”, analyzes Esper.
The repeal of the law will allow the dollarization of rental contracts
4. The limitation of judges.
The judges cannot modify the form of payment or the currency agreed upon by the parties.Judges also do not have the power to modify the stipulations of contracts, except at the request of one of the parties when authorized by law. “Legal norms are always of supplementary application to the will of the parties expressed in the contract, although the law does not expressly determine it for a specific contractual type, unless the norm is expressly imperative, and always with a restrictive interpretation,” details the document.
Regarding the judicial control of abusive clauses, the administrative approval of the general clauses does not prevent their judicial control.
5. Deposit, guarantee and periodicity of payment.
The new regulations allow the parties to freely determine the amounts and currency delivered as a bond or security deposit, and the way in which they will be returned at the end of the lease. For example, before the rental laws enacted after 2020, the value of one month's rent per year was agreed upon and not one month for the entire contract.Furthermore, the parties will freely agree on the frequency of payment, which may not be less than monthly.
6. When the contract can be terminated
The tenant may, at any time, terminate the contract by paying the equivalent of 10% of the balance of the future rental fee, calculated from the date of notification of termination until the end date agreed in the contract.On the other hand, the tenant can terminate the contract if the owner does not comply with his obligation to maintain the unit in conditions suitable for the agreed use and enjoyment, except when the damage has been caused directly or indirectly by the tenant.
Another case in which the tenant can terminate the contract is if the homeowner fails to comply with the eviction guarantee or the redhibitory defects guarantee.
The tenant may, at any time, terminate the contract by paying the equivalent of 10% of the balance of the future rental fee.Hernan Zenteno - LA NACION
7. Contracts should no longer be registered in the AFIP
Given that the 2020 rental law created the obligation to register contracts in AFIP, by repealing law 27,551 that obligation is eliminated effect.8. Rights to agree
With the repeal of the law, there are certain situations that were left unprotected and that the parties must clarify in the rental contract. a>“For example, with the previous regulations, the tenant could terminate the contract after the seventh month, while now there is no stipulated period. So the new contracts should clarify the number of months for which the tenant cannot terminate the agreement,” says Enrique Abatti, president of the Chamber of Owners of the Argentine Republic.
It also suggests putting in writing how much notice must be given to terminate the contract, which in the law that governed until now established a period of one month.
The tenant may, at any time, terminate the contract by paying the equivalent of 10% of the balance of the future rental fee with the new DNU.Fabian Marelli
9. The tenant can no longer compensate rents with expenses that are the responsibility of the owner
While the now repealed law was in force, faced with urgent damage to the property -such as a broken water pipe-, the tenant He notified the owner and if the arrangement was not managed within 24 hours, he had the right to hire a professional at his own expense and then deduct that cost from the landlord's rental fee. “That now no longer exists and it is a situation that must be contemplated in the contract, according to what the parties freely agree to,” says the lawyer.< /span>For example, it is recommended to state in the contract that if in a short period of time (it could be five days) the landlord - after being notified by the tenant by reliable means - did not make the arrangement that he is responsible for covering, in that case the tenant can Hire a plumber, electrician or whatever skill you need for said repair, pay them and then pass the bill to the owner, establishing in the contract how the refund will be: whether through a discount on the rental fee or direct reimbursement from the owner to the tenant.
10. Mandatory pretrial mediation is no longer required to initiate an eviction process
The previous rule provided that it was necessary to carry out mediation prior to the judicial instance, which took “no less than two months,” according to Abatti. The repeal of this point would imply a shortening of eviction deadlines, according to the lawyer.What are the steps of a DNU to come into force?
After the President issues a Decree of Necessity and Urgency, it comes into effect when it is published in the Official Gazette. Although Javier Milei said that his decree came into effect on December 20 when it was announced on the national network, this is not the case. The decree was published on December 21 but does not specify the date on which it comes into effect, so the general rule is applied that establishes that presidential decrees, like laws, do not determine another period they come into force after the eighth day of their publication. That is, if they do not issue another decree clarifying when its validity begins, the megadecree would take effect as of December 29.The Constitution only enables the use of DNU in the case of “exceptional circumstances” in which it would be impossible for Congress to follow the “ordinary procedures” for enacting laws. This is what Javier Milei determined as an “emergency” in relation to the current situation.
The President has 10 days to send the DNU to the Permanent Bicameral Commission for Legislative Procedures of Congress. The Bicameral Commission has 10 business days to issue an opinion on the validity of the decree and send it to the plenary session of both Chambers for discussion. If the Bicameral Commission is not issued within that period, the Chambers must deal ex officio with the treatment of the DNU.
The Senate and Deputies can only accept or reject the DNU. They cannot introduce amendments, modifications or additions. And it is resolved by an absolute majority of those present (half plus one).
This means that the contracts that are signed from the moment the DNU comes into force will be made with the new legislation and will be valid until Congress accepts or rejects the decree. If you reject, the contracts signed during that period will remain in force.
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