To the Minister of the Interior Mr. Alex. Haritsi Commun. Ms Theano Fotiou
To the General Secretary of AADE Mr. Giorgos Pitsilis
COM: To the President of IDIKA Mr. Anastasios Tagaris
Subject: Rent allowance: End of €100 fines against home owners!
Dear Ladies and Gentlemen
In view of the implementation of the provisions of the Administrative Law D13ok.10747/256 on subsidy of rent, many tenants, in order to collect it, demand from the owners (landlords) the drawing up and signing of retroactive (from 1.1.2019) extensions of the lease contracts. However, the filing today of contracts extending the application of the AADE with retroactive effect from 1.1.2019, incurs fines of €100 against the lessors, as it is considered overdue.
You will agree with us that it is socially unfair for landlords to pay fines to make it easier for their tenants to collect the rent subsidy. For this reason please take the following into account:
1.The initial lease of a main residence has a statutory minimum duration of three years, mandatory for both parties even if it has been agreed for a shorter period of time or for an indefinite period (article 2 par. 1 of Law 1703/1987 (Government Gazette A145) & par. 5 of no. 1 of Law 2235/1994).
2.According to the Civil Code, if the contract has expired and the tenant remains in the property then it is considered that the lease has been renewed for an indefinite period (Article 611 of the Civil Code: “The lease concluded for a certain period of time is deemed to have been renewed for an indefinite period, if after the expiration of the agreed period the lessee continues to use the lease and the lessor is aware of it and does not object”).
> it is illegal to impose a fine for allegedly failing to register an agreement to extend an already valid and registered lease.
4.Furthermore it is clear thatno legal obligation of the lessor to definitely sign and register an extension of a lease, especially if the result will be that the tenant collects the allowance, and the owner pays a fine of €100 for this!!!
For these reasons, please clarify immediately with your decision or circular that:
1. A new registration in AADE is not required for the newest leases, i.e. those registered in the AADE application with a start time after 1.10.2016. These are leases that have not yet completed their three-year legal term and cover the entire period until 30.9.2019.
2.For the older leases , which have completed the three-year period and have been tacitly renewed indefinitely, not to impose fines on the lessors who register their renewal in the AADE application, as long as the applications for the grant are submitted of the rent allowance.
3. In general, the deadline for submitting to the AADE application, the extension of any older lease of a main residence, should be judged based on the date of the new extension agreement and not the end date of the contractual term to which it refers.
Best Regards
The President
Stratos I. Paradias
