Extremadura Commercial Landlord-Tenant Laws: REQUIRED DISCLOSURES

Under the Spanish Urban Leases Act (Ley de Arrendamientos Urbanos - LAU), which has been in effect since 1 January 1995, commercial leases (leases for use other than housing) are characterized by the principle of party autonomy. While the statutory disclosure regime is less rigid than for residential properties, landlords in Extremadura must adhere to specific national and regional requirements to ensure a valid and enforceable contract.

Mandatory Disclosure Requirements

In Extremadura, the following disclosures are legally required or essential for commercial lease validity:

1. Energy Performance Certificate (CEE): Pursuant to Real Decreto 390/2021, landlords must display the energy label in any advertisement and provide the tenant with a copy of the certificate upon signing the lease.
2. Community Expenses and Taxes: The allocation of community fees and property taxes (IBI) is governed by the principle of party autonomy under Article 4.3 of the LAU. Unlike residential leases, Article 20 of the LAU does not apply to commercial contracts; therefore, there is no statutory requirement to specify exact annual amounts for these charges to be validly passed to the tenant.
3. Hidden Defects (Vicios Ocultos): According to the Spanish Civil Code (Articles 1484-1490), applicable to leases via Article 1553, landlords are liable for hidden defects that render the premises unfit for the intended commercial use, unless they were known to the tenant or easily detectable.
4. Activity Licenses: While not always a direct disclosure, the landlord must ensure the premises meet the physical requirements for the intended use. In Extremadura, tenants typically require an Activity License (Licencia de Actividad) from the local municipality, and landlords should disclose any known impediments to obtaining such licenses.

Administrative Compliance in Extremadura

Landlords must also comply with regional administrative mandates:

• Security Deposit Lodgment: In the Autonomous Community of Extremadura, the mandatory cash security bond (fianza) for commercial leases (equal to two months' rent per Art. 36.1 LAU) must be deposited with the Caja General de Depósitos de la Junta de Extremadura. This is required by Ley 3/2001, de 26 de abril, de la Calidad, Promoción y Acceso a la Vivienda de Extremadura (Art. 34/61). Failure to lodge the deposit is an administrative infraction.
• Jurisdiction: All legal disputes arising from commercial leases in Extremadura are subject to the jurisdiction of the Juzgados de Primera Instancia (Civil Courts) in the judicial district where the property is located.

Legal Recourse for Non-Disclosure

If a landlord fails to provide mandatory disclosures or conceals material facts about the property:

1. Termination of Contract: The tenant may seek the rescission of the contract if the concealed defect or missing disclosure prevents the intended commercial use.
2. Damage Claims: Tenants may file for damages in the Juzgados de Primera Instancia if the lack of disclosure results in financial loss, such as the inability to open a business due to licensing issues.