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Contract with automatic renewal: the landlord doesn't get the property back after one year

2012-08-14 Código Civil, art. 1097.º n.º 3

Article 1097 of the Civil Code, as amended by Law 31/2012 of 14 August, governs a landlord's opposition to the automatic renewal of a fixed-term residential lease.

Paragraph 3 sets out a rule that surprises many landlords: "the landlord's opposition to the first renewal of the contract only takes effect once three years have elapsed since it was entered into, the contract remaining in force until then".

In practice, a one-year contract with automatic renewal does not let the landlord get the property back at the end of that year just because notice was sent within the deadline in paragraph 1 — the contract runs until it reaches three years, regardless of the agreed initial term.

The exception concerns termination for the landlord's own housing needs or those of a first-degree descendant, under Articles 1102 and 1103, which follows a separate regime and is not subject to this three-year minimum.


Source:https://www.pgdlisboa.pt/leis/lei_mostra_articulado.php?nid=775&tabela=leis

This text is a summary of the law and does not constitute legal advice. For your specific situation, consult a lawyer admitted in Portugal.

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