Aval and Express Evcitions

Not sure if this is new or if landlords didn't bother with it, but we are in the process of renting (to buy) a new apartment and the landlord asked us to sign an express eviction document (not sure of Spanish name as we don't have a copy) as well as an Aval.

After a trip to the bank I found out an Aval is in essence a  line of credit offered by the bank in lue of rent should one default. Combined with the express eviction means the landlord's butt is covered should we defeat. He is guaranteed 2 years rent and can kick us out of the place within 30 days should we stop paying. Fantastic deal for him.

BUT

there is a huge negative to this, unless you have a very good job and a stellar credit rating you won't be able to rent an apartment anymore. So what do you do if your unemployed or have a poor credit rating etc, welll.....

2011 is when the Shit will really hit the fan.

debated putting this in a separate thread but the two really tie together well. Edward Hugh in his excellent Spanish Economy blog (warning it's like a slow motion train wreck, each post things are getting worse) to quote

My argument here is addressed not to the United States, but rather towards the imminent danger of economic catastrophe in Spain, and towards those who shoulder some of the responsibility for trying to see that it does not happen. This year we will see between 4.5 and 5 million unemployed in Spain. Next year these numbers could rise to 6, or even 7 million. After two years standard unemployment insurance coverage runs out (in the best of cases) for Spanish workers, and there is no systematic system of social security in place as there is in the UK, France, or Germany. So if the worst gets to the worst, just how will these people live? How will they eat, let alone how will they pay their "oh so precious" mortgages. (or pay rent or get an aval)

So what do you do if you don't have job and can't get an Aval, well you either move in with Mom and Dad or join the homeless. I expect in 2011 as UI runs out that you'll see a huge uptick in the homeless, and it won't be the usual, the drunks, drug addicts etc but people like you and I.

Like I said reading his blog is like watching a slow motion train wreck.

Hello Rob.

We at the office have tried to check the authencity of this claim of a special document for rapid eviction and it does not seem toi exist.

myra cecila

It's called Garantia de Alquiler and it costs 52€. You can evict a tenant in a bit over a month vs several years the old fasition way. I would expect this days that it would be impossible to rent an apartment without signing one.

website www.pnag.es 

I'd love to know how it works but, unsurprisingly, it's all in Spanish.

btw it should read Aval and Express Evictions not Evcitions

We always recommend for rentals:

- To submitt the contract to arbitration rather than Courts.

An eviction process can take months and this submissions allow you to have an Arbitrator decission within 30-40 days.

In present times, I would say it is a must.

Best,

Maria

Is that what a Garantia de Alquiler is? An agreement to take to Arbitrator. And can you submit the contract to arbitration with the tenants agreement?

Yes, you need the tenant agreement to submitt the contract to arbitration, but I cannot see the tenant refusing it. It i was the owner, I would definitely not rent my house to someone does not agree on having the submission to arbitration. I would very much doubt of good faith there.

 that's why the owner made us sign a Garantia de Alquiler before renting us the flat, even though it's a rent with the option to purchase

There is a good company in my opinion, it is called Arrenta and they have already offer some bonus to EOS members....Justin? can we tell them?

We have not used them for evictions so far, but the arbitrtation system for this type of cases is the optimal one, in my opinion.

I am sure the Arrenta people will be able to offer to you some examples.

If I were you, I would definitively take it.

Best,

Maria

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