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What will happen to the new rental contracts if Milei's DNU is rejected? - Infobae
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¿Qué pasará con los nuevos contratos de alquileres si se rechaza el DNU de Milei?
El Senado sesiona hoy para debatir sobre el DNU que incluye la derogación de la Ley de Alquileres. Si el proyecto es rechazado, el decreto perderá validez. ¿Qué ocurrirá con los contratos de alquiler firmados desde fines de diciembre?
www.infobae.com
March 14, 2024
The Senate meets today to debate the DNU that includes the repeal of the Rental Law. If the project is rejected, the decree will lose validity. What will happen to rental contracts signed since the end of December?
The rental problem has been complex for more than 3 years and although the DNU improved the offer, Congress is dealing with the possible rejection, what will happen to the contracts already signed (Illustrative image Infobae)
The Senate began a new session this Thursday with the purpose of addressing, among other issues, the treatment of the Decree of Necessity and Urgency (DNU) 70/23 on economic deregulation in a context of great tension between the Casa Rosada and Vice President Victoria Villarruel . , who decided to carry out the debate on the aforementioned DNU despite having full knowledge that the opposition has the votes necessary for its rejection. The parliamentary discussion is closely followed by tenants and landlords, since the package includes the repeal of the Rental Law and if the text were finally rejected, that rule would come into force again.
Yesterday afternoon, Villarruel made a last effort to avoid debate on the decree, however, his attempt was unsuccessful. During the Parliamentary Labor meeting, he asked the leaders of the Senate blocks to extend the treatment of the issue for a week, based on the negotiations that the Executive Branch had begun last week with the governors, in search of a fiscal agreement. However, his proposal did not receive a favorable response.
In a statement issued from the Casa Rosada, it is emphasized that taking measures against the decree would be considered a “serious netback in the rights and needs of the Argentine people.”
Among the aspects that are mentioned as setbacks is the possibility of returning to the repealed Rental Law . This change is directly related to the DNU signed by President Javier Milei a few days after taking office in December, which came into force on the 29th of the same month. This DNU included the complete repeal of Law 27,551, enacted in July 2020, along with the modifications introduced in October 2023 (Law 27,337).
In the real estate market, it is argued that the reintroduction of the regulations would cause a new drop in supply , just at a time when it reached record levels. In the city of Buenos Aires, it is estimated that there are approximately 12,000 rental homes (of which approximately half are valued in dollars), in contrast to the less than 500 that were available in pesos before the implementation of the DNU.
Despite the uncertainty, the sector points out that if the Senate rejects the DNU, the measure will still have to undergo treatment in the Chamber of Deputies. This implies that politics will once again influence the issue of housing, without clarity as to whether the results will be favorable for owners and tenants.
The Rental Law, which incorporated the annual adjustment under the Rental Contract Index (ICL), faced harsh rejection since its conception. The owners considered this annual adjustment to be unfavorable, especially in a context of high inflation, resulting in constant losses due to economic imbalance.
What will happen to the contracts signed after the entry into force of the Milei DNU?
Since the implementation of the DNU, the previous law became ineffective and rental contracts returned to be governed by the regulations of the National Civil and Commercial Code. However, some modifications were introduced that provide greater flexibility, allowing 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. in a mutual agreement between owners and tenants.Real estate law specialists have repeatedly emphasized the importance of documenting all agreements in writing and ensuring that both parties agree on all aspects to maintain a healthy contractual relationship. Various options have even been pointed out to adjust the contract during its validity, as long as it is duly recorded in writing.
The Government's DNU effect caused owners to gradually reintroduce their properties to the market . More than two months after the repeal of the law, the statistics are revealing: the supply of housing in CABA increased by 36.5% between February and January 2024 and 189.7% since December 2023.
Furthermore, a slowdown has been observed in the publication prices at the starting point of the contracts, with increases recorded in recent months below the inflation rate (according to Zonaprop it was 8.3% in Greater Buenos Aires, For example). In summary, a scenario of greater supply and lower prices was achieved, which previously seemed unattainable in the rental market during the last three years.
The signed agreements will not lose their validity. They will remain in force until their expiration (Photo: Getty)
For those who signed contracts during these two months, they will not lose validity. “The law does not have retroactive effect unless expressly provided,” said Enrique Abatti , specialist in real estate law and president of the Chamber of Property Owners of the Argentine Republic.
Abatti explains that “contracts in execution will remain valid.” This same principle was applied when the law was enacted in July 2020 and later, last October, when modifications were made; The current contracts maintained their conditions until their end. The same will happen with those signed under the repealed law and governed by the Civil and Commercial Code, with free agreements between the parties, in the event that Congress rejects the DNU and the controversial rental law is again in force.
In the event that the DNU is rejected in Congress and the law is again in force, the same will happen with contracts signed as of December 29 under the DNU and the Civil and Commercial Code. This implies that both tenants and owners will be divided for a considerable period between those who have contracts under the 2020 law, those who have contracts with changes to the 2023 law, and those who sign contracts under the new conditions of the Civil and Commercial Code. established by the DNU.
What did the Rental Law establish that Milei's DNU repealed?
The law passed in 2020 was reformed on October 18, 2023 when Law 27,737 came into force , which introduced tax exemptions applicable to the current fiscal year of 2023 and modifies the legal regime for real estate lease contracts.This law, born in the Chamber of Deputies and modified in the Senate, was approved with 128 affirmative votes and 114 negative ones.
Among the most relevant modifications are: the use of a new coefficient for these adjustments, the setting of the price in national currency, among others. With the changes applied, it establishes that prices will be adjusted using as a basis the “Casa Propia” coefficient, which was used by the former Ministry of Territorial Development and Habitat.
Tax exemptions are also established for owners who register their contracts with the AFIP, as well as new deductions in income tax for landlords and tenants. In addition, the law urges provincial jurisdictions and the City of Buenos Aires to offer additional tax benefits for properties intended for residential rental.
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