21 Dic 23 Amendments to the Civil and Commercial Code of the Nation

Agustín Cerolini, Matías Ferrari, Natalia Artmann and Valentina Circolone

By means of Decree No. 70/2023 (the «DNU» for its acronym in Spanish), published on December 21, 2023, the National Executive Power of the Argentine Republic (the «PEN» for its acronym in Spanish) repealed Rent Law No. 27,551 and introduced amendments to certain articles of the Civil and Commercial Code of the Nation («CCCN» for its acronym in Spanish).

First, the DNU replaced article 765 of the CCCN, establishing that the debtor is only released from its obligation to give sums of money if it delivers the amounts committed in the agreed currency, prohibiting the possibility that judges may modify the form of payment.

Following this line, the DNU amended section 766 of the CCCN, so now the debtor must deliver the corresponding amount of the agreed species, whether or not the currency is legal tender in Argentina.

Repeal of the “Ley de Alquileres” Rent Law

The DNU repealed the Rent Law No. 27,551 and Law No. 27,221 on real estate lease agreements entered into for tourism purposes.

In this regard, among the main measures adopted by the DNU is the elimination of the minimum legal term for leases. In its place, the PEN established that the term, regardless of the purpose of the property, will be the one agreed upon by the parties. However, if no such term has been indicated in the contract, the following terms will apply:

(i) in cases of temporary lease, the term established by the customs and practices of the place where the leased property is located;

(ii) in the case of leases for permanent housing, with or without furniture, it shall be two (2) years, and;

(iii) for other purposes it shall be three (3) years.

On the other hand, the new version of article 1199 of the CCCN establishes that the rent fee may be established in legal tender or in foreign currency, prohibiting the tenant from demanding that payment be accepted in a currency different from the one established in the contract.

Regarding the update of the rent fee, the parties may agree on its adjustment using any index, public or private, expressed in the same currency in which the rent was agreed, and the prohibition of indexation set forth in article 10 of Law No. 23,928 does not apply.

On the other hand, the DNU incorporated a new cause for termination of the lease attributable to the lessee, establishing the possibility that the lessor may terminate the lease for any cause set forth therein.

As regards early termination, the DNU eliminated the six (6) month term to exercise this option, so that now the lessee may, at any time, terminate the lease by paying the equivalent of ten percent (10%) of the balance of the future rental fee, calculated as from the date of the notice of termination until the termination date agreed in the lease.

Finally, the DNU revoked articles 1202, 1204, 1204 bis and 1221 of the CCCN related to payments for improvements, loss of luminosity of the property, compensations and renewal of the contract.