SUCCESS STORY. Residential Lease and Tacit Renewal: Application of the 1994 LAU

Lawyer reviewing a tenancy agreement with the scales of justice and a gavel to ensure legal certainty.

IMPORTANT: This article analyzes a successful case resolved in accordance with the contractual, regulatory, and case law framework applicable at the time of its publication. Currently, any issue related to this topic must be analyzed based on the specific case, current case law, and the current text of Law 29/1994, of November 24, on Urban Leases, the First Transitory Provision of the LAU , and, where applicable, Article 1566 of the Civil Code.

Ángel José Del Pino Ibáñez, an attorney with IN DIEM Abogados, obtained a fully favorable ruling from the Provincial Court of Seville, Second Section, in a case that raised and analyzed the application of the 1994 LAU to residential lease agreements entered into on or after May 9, 1985, and still in effect as of January 1, 1995—a matter that is particularly contentious from both a legal and case-law perspective.

Indeed, the legal framework governing such lease agreements is particularly contentious, both in terms of their duration and with regard to the possibilities of tacit renewal and/or extension, issues on which legal doctrine and case law have not reached unanimous conclusions, all of which stems from the controversy surrounding the First Transitional Provision of the 1994 LAU.

Residential Leases and Tacit Renewal: Application of the 1994 LAU

The Provincial Court of Seville accepted the argument put forward by IN DIEM Abogados and ruled, regarding the term of this type of contract, that the First Transitory Provision of the 1994 LAU should be interpreted as follows:

“Following the tacit renewal of Transitional Provision No. 1, the statutory extension of up to 3 years provided for in Article 10 of the new LAU must be applied, so that the renewed lease is subject to the tenancy regime of the new Act of 1994, including its term.”

Ultimately, the ruling by the Provincial Court of Seville fully upheld the arguments presented by IN DIEM Abogados, both regarding the term of the contract and the adjusted rent, and concluded by ordering the opposing party to pay the corresponding costs.

The ruling can be viewed in the document hosted by IN DIEM Abogados and, if necessary, searched for in the official CENDOJ search engine of the General Council of the Judiciaryby entering the available information: Seville Provincial Court, Second Section, lease, tacit renewal, and First Transitory Provision of the LAU.

Lease Agreements Entered Into After May 9, 1985

The case concerned a residential lease agreement entered into after May 9, 1985, and still in effect when the 1994 LAU took effect. This type of agreement posed a specific problem because it fell under a particularly complex transitional regime.

The main issue was to determine which legal framework should apply once tacit renewal had taken place: whether to rely exclusively on the general provisions of the Civil Code or, conversely, whether the renewed lease was subject to the provisions of the new Urban Lease Law of 1994, including its term.

The First Transitional Provision of the LAU was precisely the focus of the controversy, as it governed contracts entered into on or after May 9, 1985, that were still in effect as of the date the new law took effect.

Tacit Renewal and Term of the Lease

Tacit renewal occurs when, upon the expiration of the lease, the tenant continues to occupy the property with the landlord’s acquiescence, provided that no prior notice has been given. This concept is generally governed by Article 1566 of the Civil Code.

However, in leases subject to the transitional provisions of the 1994 LAU, the issue was not limited to determining whether or not there was a tacit renewal, but also what the term of the renewed lease was and which regulations should govern it.

The legal position adopted by the Provincial Court of Seville made it clear that, following the tacit renewal provided for in the First Transitory Provision, the statutory extension of up to three years provided for in Article 10 of the LAU then in force was to be applied, with the renewed lease being subject to the provisions of the new law.

Extension, Rent Adjustment, and Termination of Contract

In addition to the term of the lease, the proceedings also addressed issues related to rent adjustments. In older leases or those subject to transitional regimes, rent adjustments can lead to significant disputes, especially when there are contractual clauses, extended periods of occupancy, or disagreements regarding the term of the lease.

The ruling upheld the position advocated by IN DIEM Abogados not only regarding the term of the contract but also with respect to the adjusted rent, which resulted in a fully favorable ruling.

Matters of this nature require a careful review of the contract, the date of execution, any extensions granted, the possibility of tacit renewal, requests made by the parties, rent adjustments, and the applicable legal framework at any given time.

The Importance of a Temporal Analysis of the Lease Agreement

When it comes to residential leases, the date the lease is signed can be decisive. Not all leases are governed by the same rules, especially when legislative changes, transitional provisions, or rules applicable to prior leases are involved.

Therefore, before filing a claim or responding to a lawsuit regarding a lease, it is essential to determine whether the contract is governed by the 1964 LAU, the provisions of Royal Decree-Law 2/1985, the 1994 LAU, or any of its subsequent amendments.

Correctly identifying the applicable legal regime makes it possible to assess the term of the lease, the validity of extensions, the existence of tacit renewal, rent adjustments, the grounds for termination, and the financial consequences for the landlord and tenant.

A Success Story in Civil Law and Leases

The published case serves as an example of legal representation in the area of residential leases, where the dispute was not limited to the existence of the contract, but also concerned the interpretation of its term, its transitional provisions, and its economic effects.

The favorable ruling by the Seville Provincial Court confirmed the position defended by IN DIEM Abogados and resulted in a favorable decision regarding the term of the contract, rent adjustments, and costs.

For IN DIEM Abogados, lease disputes require a thorough analysis of the lease agreement, applicable regulations, case law, and the conduct of the parties throughout the term of the lease.


Preguntas frecuentes sobre arrendamiento y tácita reconducción

¿Qué es la tácita reconducción en un contrato de arrendamiento?

La tácita reconducción se produce cuando, terminado el contrato de arrendamiento, el arrendatario continúa usando la vivienda o local con consentimiento del arrendador y sin que exista requerimiento previo de finalización. Sus efectos dependen del contrato, de la normativa aplicable y de las circunstancias del caso.

¿Por qué es importante la fecha del contrato de arrendamiento?

La fecha del contrato es esencial porque permite determinar qué régimen legal resulta aplicable. En España han coexistido distintos regímenes arrendaticios y algunos contratos antiguos pueden quedar sometidos a disposiciones transitorias específicas de la Ley de Arrendamientos Urbanos.

¿Qué regula la Disposición Transitoria Primera de la LAU?

La Disposición Transitoria Primera de la LAU regula determinados contratos celebrados a partir del 9 de mayo de 1985 que subsistían a la entrada en vigor de la Ley de Arrendamientos Urbanos de 1994. Su aplicación puede ser relevante para determinar la duración del contrato y los efectos de la tácita reconducción.

¿La tácita reconducción implica siempre una nueva prórroga del contrato?

No necesariamente. Debe analizarse si concurren los requisitos legales, si hubo requerimiento previo, cuál era el régimen aplicable al contrato y qué duración corresponde al arrendamiento renovado. Cada caso exige revisar el contrato y la conducta de las partes.

¿Pueden reclamarse rentas actualizadas en contratos antiguos?

Puede ser posible, pero depende del contrato, de las cláusulas pactadas, de la normativa aplicable, de los actos realizados por las partes y de los plazos. Las actualizaciones de renta en contratos antiguos o sometidos a regímenes transitorios deben revisarse con especial cautela.

¿Cuándo conviene acudir a un abogado especialista en arrendamientos?

Conviene acudir a un abogado cuando existen dudas sobre la duración del contrato, prórrogas, tácita reconducción, actualización de renta, resolución del arrendamiento, desahucio, reclamación de cantidades o interpretación de cláusulas contractuales.


Experts in residential leases, contracts, and civil disputes

At IN DIEM Abogados, we provide legal advice and representation to landlords, tenants, property owners, businesses, and individuals in proceedings related to commercial leases, rental agreements, contract terms, tacit renewal, extensions, rent adjustments, contract termination, and claims for payment.

Our team handles matters that require a detailed assessment of the contract, applicable regulations, the date of execution, communications between the parties, and current case law. In these types of proceedings, legal counsel helps anticipate risks, organize documentation, and develop an appropriate legal strategy.

  • Advice on lease agreements for residential, commercial, and other properties.
  • Legal representation in civil proceedings regarding contract duration, extensions, and tacit renewal.
  • Claims for rent, adjustment of amounts, and termination of the contract.
  • Evictions and lease-related proceedings before courts and tribunals.
  • Analysis of Old Lease Agreements and Transitional Provisions of the LAU.

If you need to review a lease agreement or defend your rights as a landlord or tenant, you can contact our team for an initial legal assessment.


In-person, online, and urgent service. 24-hour support.

IN DIEM Abogados provides in-person, online, and emergency legal assistance from its offices in Madrid, Seville, Málaga, Marbella, Estepona, Las Palmas de Gran Canaria, Almería, and Huelva, serving clients throughout Spain.

The firm has a multidisciplinary team composed of specialized attorneys and professionals with experience in the areas of litigation, tax, commercial, technology, criminal, civil, administrative, and real estate law, which allows us to approach each matter from a technical, strategic, and practical perspective.

In addition, IN DIEM Abogados offers urgent assistance when the nature of the matter requires an immediate response or a quick initial assessment of the case.


Would you like to know more about IN DIEM Abogados? Here is this short introductory video…

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You can find us in Seville, Madrid, Las Palmas de Gran Canaria, Málaga, Tomares, Coria del Río, Dos Hermanas, Mairena del Alcor, Estepona, Marbella, and Mairena del Aljarafe. We look forward to serving you.

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