Within any contractual agreement, various rights and responsibilities are held by all involved parties. This concept is equally relevant to both lessors and lessees in lease agreements. According to the terminology used in the Civil Code, the term ‘thing’ refers to both tangible and intangible assets that can be leased under such contracts.
The general obligations of the lessor, by virtue of Article 1539 of the Civil Code, are that he is bound to;
The item must be delivered in a fully operational and well-maintained condition by the lessor, who is also responsible for conducting all essential repairs. For buildings, though, the lessor’s obligations are limited to performing major structural repairs, while the lessee is expected to handle other maintenance tasks. It is the lessee’s responsibility to promptly notify the lessor of any necessary repairs, which the lessor should then address without undue delay. Should the lessor neglect to make any repairs within a timeframe established by the Rent Regulation Board, impairing the lessee’s use of the property, the lessee is entitled to seek both termination of the lease agreement and compensation for damages. Additionally, the lessor must ensure the leased property is free from any faults or defects, whether obvious or hidden, that could affect its use, regardless of whether these issues emerge after the lease is signed.
On the other hand, the lessee is bound under Article 1554 of the Civil Code to:
Should the lessee utilize the leased property for purposes other than those mutually agreed upon by the parties, or as implied by the context of the agreement, and if such misuse adversely affects the lessor, the lessor is entitled to request the termination of the contract. Additionally, in the case of residential properties, if the lessee fails to occupy the property for a period exceeding twelve months, this is regarded as improper use of the leased property, giving the lessor grounds to terminate the agreement.
While standard lease agreements are governed by the Civil Code, residential lease contracts are subject to the provisions of the Private Residential Leases Act. As a result, both lessors and lessees are granted distinct rights and duties, particularly concerning the initiation and conclusion of a residential lease agreement.
Initially, it is required that the lessor register any private residential lease with the Housing Authority within ten (10) days following the start date of the lease. If the lessor fails to meet this requirement, the lessee has the right to register the lease themselves, with the costs to be borne by the lessor.
With regard to the conclusion of a long-term private residential lease, it will automatically end upon the expiration of its term, assuming the lessor has issued a notice to the lessee via registered mail at least three (3) months before the end of the term. If the lessor does not fulfill this requirement, the lease will automatically extend for an additional year. This obligation does not apply to short-term private residential leases, which naturally terminate upon reaching the agreed-upon expiration date without any requirement for notice.
Conversely, the lessee is entitled to terminate a long-term private residential lease, but only after the period specified in Article 11 of The Private Residential Leases Act, which depends on the lease’s length, has elapsed. If the lessee fails to adhere to these obligations, the lessor is permitted to withhold an amount equivalent to one month’s rent from the security deposit provided by the lessee and may take further action to recover any additional amounts owed.
For more information or assistance please contact Dr Robert Tufigno and Dr Delilah Vella
[1] The bonus paterfamilias is a standard of care taken by a reasonable person with its roots in Roman Law.