Lease agreements define the rights and obligations between the landlord and the tenant. Sometimes these contracts can be complex, and you may need help to draw them up if you are a landlord, or support in the process of renting a house if you are a tenant. In the Catarina S. Gomes office you will find the best lawyers in Braga to assist you with lease agreements.

Leasing: What is it?

O rental This is a contract where a person, who owns an asset, grants another person the right to use that asset for a period of time, in exchange for a monetary contribution.

Thus, a lease involves two parties: the owner and the tenant.

The difference between leasing and renting a property is that, in leasing, the tenant has the option to purchase the property at the end of the contract. If they decide to exercise this option, they can use a portion of what has already been paid as a discount on the purchase price.

Types of Leases

There are several types of leases:

• Rural lease – contracts entered into concerning rural properties, i.e., land. It can be rural (for agricultural, forestry or other activities related to the production of goods or services associated with agriculture, livestock and forestry) or non-rural.
• Rental for housing – used for residential use of the property;
• Commercial lease – lease for the operation of a commercial or industrial establishment or in cases of rural leases.

Property Law

Issues related to leasing, such as lease agreements, fall under the broader field of Real Estate Law.

Property law covers everything related to immovable property and property rights, with the central aim of regulating actions ranging from renting and leasing to the purchase and sale of properties.

In all these actions, both parties can benefit from legal advisory services to have their interests represented throughout the entire process, whether it involves leasing, renting, or buying and selling real estate.

Looking for a qualified lawyer specializing in Real Estate LawContact us! We are located in Braga!

Lease Agreements

A lease agreement is entered into between a landlord and a tenant, with the aim of establishing the rights and obligations of both parties, such as the landlord's obligation to deliver the property and the tenant's obligation to pay rent.

Lease Agreements: Rights and Obligations

The landlord is responsible for carrying out ordinary and extraordinary maintenance work whenever required by law.

Furthermore, the landlord must give preference to the tenant in the event of a sale or transfer of ownership of the leased premises if the property has been rented for more than 2 years.

If the tenant fails to fulfill their obligation, which is to pay the rent, the landlord can demand the overdue rent plus compensation of 50% from the amount owed, unless the contract is terminated due to non-payment.

All lease agreements must be in writing, but the terms depend on the type of lease.

What is the lease law?

The main laws that regulate rentals in Portugal are:

• O New Urban Lease Regime (NRAU), Law No. 6/2006, of February 27, which establishes the legal framework applicable to urban leases, defines the rights and duties of the parties, the methods for updating rents, and the grounds for termination of the lease agreement.
• O Supported Housing Scheme (RAA), Decree-Law No. 166/93, of May 7, which aims to promote affordable rental housing based on tenant selection criteria and the establishment of maximum rents.
• A Income Law, Law No. 31/2012, of August 14, which introduced changes to the NRAU, particularly regarding the updating of old rents and the transitional regime for tenant protection.
• O Affordable Housing Program, Decree-Law No. 68/2019, Law No. 11,846 of May 22nd, establishes measures to promote the supply of affordable rental housing, benefiting both landlords and tenants with income tax exemptions and the possibility of entering into more flexible rental agreements.

What is the minimum term for a lease agreement?

Lease agreements for permanent housing have a minimum duration of one year. If they are entered into for shorter periods, they will automatically be extended to the minimum term.

How much notice does the landlord have to give the tenant?

As mentioned earlier, if you are the tenant, you must give 120 days' notice if the contract is for one year or more, or 60 days' notice if the contract is for up to one year. For the landlord, termination can be done in cases of need for housing, demolition, or carrying out extensive remodeling or restoration work, provided that notice is given at least five years in advance.

Lease agreement: how to register it on the Tax Authority's website

1. Access to the Finance Portal and search for "Contracts";
2. Select the option “Report contract start date”;
3. Authenticate using your Tax Identification Number (NIF) and access password;
4. Fill out the declaration. Model 2, describing the contract, indicating the properties, lessors, lessees, income and observations, if applicable;
5. Save the draft and confirm all the data;
6. Submit Form 2;
7. To receive a grade of charge for the payment of the tax corresponding to 10% of the income value.

Reasons for termination of a lease agreement.

A lease agreement can be terminated for various reasons, such as:

• Revocation – when an agreement is reached between the parties, usually in writing;
• Resolution – when one of the parties decides to terminate the contract due to a breach of contract by the other party;
• Expiry – termination of the lease agreement due to the occurrence of a certain event, such as:

• • End of the stipulated deadline;
  • When the right ceases or the legal powers of administration on which the contract was based expire;
  • Upon the death of the lessee or the dissolution of the legal entity;
  • Expropriation for public use;
  • Cessation of services;
  • Confusion between the roles of landlord and tenant.

• Termination of open-ended contracts.
  • If you are the tenant, you must give 120 days' notice if the contract is for one year or more, or 60 days' notice if the contract is for up to one year.
  • The landlord may terminate the lease in cases of need for housing, demolition, or carrying out extensive remodeling or restoration work, provided that notice is given at least five years in advance.
• Opposition to the renewal of fixed-term contracts.

At Catarina S. Gomes – Lawyers in Braga, we have a qualified team specializing in lease agreements!

What is the role of lawyers in lease agreements?

A lawyer is essential for drafting and analyzing lease agreements! Whether you are a landlord or a tenant, lawyers ensure that your interests are being protected. 

Whether drafting a contract or terminating one, the lawyer ensures that the process proceeds in the most correct manner.

Therefore, a lawyer specializing in lease agreements is essential when dealing with:

• Drafting lease agreements;
• Support for tenants and landlords throughout the process;
• Lease disputes (eviction and lease protection);
• Termination of lease agreements.

Conclusion

For a residential lease agreement, the document must be written on paper, signed by all parties involved, stamped, and delivered in triplicate: one copy for the landlord, another for the tenant, and the third for the tax office. 

The contract should include information about the parties involved, the leased property, the contract duration, the rent amount, and the payment method, among other things. 

It is important to define the duration of the contract, which can be for a fixed term or indefinite term, with exceptions for non-permanent housing contracts or special temporary purposes. 

It is possible to terminate a lease agreement before the scheduled date, but the deadlines established by the Civil Code must be respected. The tenant must pay any outstanding rent if they fail to give prior notice.

Still have questions about “How many rent payments can I be in arrears on?”,“How to terminate a lease?, What to do if the landlord doesn't issue a receipt?, What is an addendum to the lease agreement?, among other questions, don't hesitate to contact us. We have a team ready to answer you. 

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