Lease (arrendamento)
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Arrendamento is the contract by which the owner of a property lets another person, the tenant, use it for a period of time in exchange for rent.
A lease is the contract in which one party gives another the temporary enjoyment of a thing in return for payment (Civil Code, article 1022). When the thing is real estate, it is called arrendamento.
The general rule is that the contract follows the property: whoever acquires the right on which the contract was based takes over the landlord's rights and obligations (article 1057). In principle, then, the buyer of a let property becomes the landlord under the same contract.
At auction sales, three situations must be told apart:
- Insolvency. The sale does not deprive the tenant of their rights (CIRE article 109(3)). The Supreme Court of Justice has ruled that a lease signed after the mortgage does not lapse with a sale in insolvency (Ruling 2/2021).
- Lease signed after the seizure. It cannot be invoked against the enforcement (Civil Code, article 819).
- Enforcement, with a lease that predates the seizure. This question was argued in the courts for years.
Example
Illustrative example: a flat let for €600 a month since 2018 is sold in insolvency proceedings in 2026. The contract continues: the buyer becomes the landlord and receives the rent, and can only end the contract as tenancy law allows.
In practice, at an auction
Look for the word arrendado (let) in the sale notice and ask whoever is running the sale for a copy of the contract: date, term, rent and any arrears. When the property is let, the is the tenant (CPC article 756).
A tenant of more than two years has a on the purchase (article 1091). Before bidding on a let property, check the position with a lawyer or solicitador. See Occupied property: what to do after buying.