Rent Contract Rescission - Is A Penalty Always Included?

[Girino]

So, we are finally leaving this apartment and our contract says we must pay a one month penalty, regardless of the advanced notice given (60 days).
Is this normal? I find it absurd. It would be okay if no advanced notice was given, but as it is written, it looks like we have to pay a penalty no matter what.

Given our contract was the most unfavorable for the tenant (our landlord and the real estate agent are friends...), I wanted to know if this is a common term
in rental contracts. Thanks.

 

[RodalfoWalsh]

You signed the contract. 1 month is generous. I think mine says 2 or 3

 

[Bairesgirl]

I assume the penalty clause comes in if the contract is not fulfilled entirely, is this so?
Are you leaving befor the end of the contract (2 years/ 6 months)?

I believe it is a clause usually put on argentine rental contracts.
http://www.protectora.org.ar/modelos-de-contratos/contrato-de-locacion-vivienda/237/

The model contract of the Consumers protection agency Protectora includes this clause-

But if the landlord and real estate agents are your friends maybe the will waive it,
negotiate by helping them get new tennants.....maybe?

 

[nkotb]

If you found it absurd you shouldn't have signed it. You should expect to be held to the terms of the contract you agreed to.

 

[Girino]

The link says what our contract says:

Para el caso que el LOCATARIO rescinda el presente contrato durante primer año de vigencia de la locación, abonará al LOCADOR o a sus representantes una indemnización equivalente a un mes y medio de alquiler vigente al momento de desocupar la propiedad; y le da solo un mes si la rescisión se produce después de transcurrido el primer año de locación. Deberá permitir la visita de futuros locatarios, entregar la vivienda en el mismo estado que la recibió y sin deudas de ninguna naturaleza. El LOCATARIO no podrá ejercer el derecho que por esta cláusula se le otorga si al momento de su pretensión resolutoria estuviere en more respecto del pago de alquileres, servicios y/ o cualquier otra deuda o cargas surgidas de las obligaciones del presente contrato o su calidad del LOCATARIO.

We are on month 14 of a 24 months contract. However, in the past (when arguing over expenses as I wrote on another thread), our landlord said "You are free to go whenever you please". Though he said many things, and never kept his word. Ever. Which is why we are leaving.

 

[Girino]

If you found it absurd you shouldn't have signed it. You should expect to be held to the terms of the contract you agreed to.

This clause is even more severe in Italian contracts, but it works like this: you have to give an advance notice of 6 months (standard Italian contracts are for 4 years), however if you want to vacant the place sooner than 6 months and a new tenant is found before that date, you are free to go without paying a dime.

For example, on our last contract we said we wanted to go out in a month, a new tenant was found after 2 weeks, so we got to leave after a month without paying the 6 months penalty.

 

[citygirl]

You are free to go whenever you please. You will also pay a penalty for doing so if that occurs before the end of the contract. Totally standard, totally fair.

 

[LIVE54]

Its standard... I have the same in my contract 1 1/2 months penalty if I terminate in year 1, or 1 month if I terminate in year 2 before the end of the full contract period.

I think its more than fair... Regardless of how much notice you give the landlord, the only way the are "ahead of the game" is if they find someone to move in within a week or two of the day you move out, which rarely happens. In most cases it can take a month or more to find a new tenant, which is why there is penalty for early termination. Now, if you know for a fact they already have a new tenant, or even better, you helped them find the new tenant that is moving in within days of you moving out, then you can probably talk to the LL and see if they will reduce the penalty... In my opinion they likely will not as that is what the contract allows, which you signed and agreed to.

 

[Fangar]

I'm just an old Georgia lawyer and don't know squat about Argentine landlord/tenant law, but as a world wide universal rule it's far better to read the contract before you sign it and may have some opportunity to change the terms rather than when you are trying to get out of it.
I am not saying this to be harsh, and certainly not judgmental, (I am a big fan of Serafina and wish her well) but I have spent much of my time since 2008 representing builders and developers who were crushed by the collapse of the real estate market and later look at their personal guaranties of multi million dollar loans with fear and loathing.
When you are looking at your new rental or purchase (of anything) and are all excited about your new toy, is the very time to ask yourself, "what's the worst that can happen to me if it all goes to hell?"
Good luck.

 

[andesmandes]

o a sus representantes una indemnización equivalente a un mes y medio de alquiler vigente al momento de desocupar la propiedad; y le da solo un mes si la rescisión se produce después de transcurrido el primer año de locación.

That is standard and also in compliance with the law. See articulo 8: http://infoleg.mecon...7287/texact.htm

Also it is common when the department is ok and both tenant and landlord are in agreement that the landlord just keeps the one month deposit as the penalty.