21/09/2026
CAN A LANDLORD FORCE A TENANT TO LEAVE IF THE PROPERTY IS PUT UP FOR SALE?
A recent ruling by the Madrid Provincial Court highlights an important issue for landlords, tenants and property professionals: can a rental agreement include a clause requiring the tenant to leave the property after the first year if the landlord decides to sell it?
In the case examined by the Court, the answer was NO, where such a clause amounted to an advance waiver of rights granted to the tenant under the Spanish Urban Lease Act (Ley de Arrendamientos Urbanos – LAU).
THE CASE
The owner of a property in Fuenlabrada sought to terminate the tenancy based on a contractual clause stating that, after the first year, the property would be put up for sale and the tenant would have to vacate it, expressly waiving the statutory extension of the tenancy.
The clause had been expressly agreed and signed by both parties.
However, both the Court of First Instance and subsequently Section 13 of the Madrid Provincial Court considered that the advance waiver was not legally valid.
WHY?
The Spanish Urban Lease Act establishes certain mandatory protections concerning the duration of residential leases.
Article 6 of the LAU provides that clauses which modify the statutory provisions of Title II to the detriment of the tenant are null and void, unless the law expressly permits such modification.
The Court distinguishes between:
• Choosing not to continue with a statutory extension when the legally established time comes.
• And waiving in advance, at the beginning of the tenancy, a right that the law grants to the tenant.
The second situation cannot simply be used to remove the statutory protection provided by the LAU.
WHAT DOES THIS MEAN FOR LANDLORDS?
The fact that a clause has been signed by both parties does not necessarily mean that it is legally enforceable.
If a landlord knows that the property may need to be sold during the tenancy, this should be considered carefully before the rental agreement is signed.
The agreement should take into account:
• The legally applicable minimum term.
• The statutory extensions provided by the LAU.
• Whether the landlord is an individual or a legal entity.
• The circumstances in which the property may legally be recovered by the landlord.
• And the potential consequences of selling a property that is subject to an existing tenancy.
THE KEY POINT
In rental matters, contractual freedom has limits.
A clause cannot simply override mandatory provisions of the law because both parties have signed it.
Proper legal drafting is particularly important when the owner anticipates selling the property during the tenancy.
At C2C Legal Department, we believe that a rental agreement should be reviewed from both a property and legal perspective before it is signed.
A carefully drafted agreement can help prevent disputes and clarify the rights and obligations of both parties.
Source: Madrid Provincial Court, Section 13, ruling concerning a residential tenancy in Fuenlabrada.
This publication provides general legal information only. Each tenancy agreement should be analysed according to its specific circumstances.
