The simulation of the lease consists of creating the appearance of a lease when the cause is false and there is no will between the contracting parties to celebrate it.
With this action it is intended to continue living in the property of third parties causing them harm, lying that the contractual relationship between tenant and landlord continues.
Why are some leases simulated?
The majority response in practice is to avoid the resolution of the contract by its legitimate owner or to prevent the owner from losing possession of the property (example: in the event that the Bank is awarded the home at auction, the owner of the home simulates a lease with a third person, the most common is that it is a family member, so that they do not evict you).
What tests are used to determine the simulation of the lease?
Who must present evidence about the simulation is the one who says that it has occurred. Given the difficulty of trying to prove a false operation, the Courts have decided to accept the relevant evidence in the trials. The most common tests are these:
- whether or not the lease has been incorporated into any registry.
- Whether or not there is a family relationship between the landlord and the tenant.
- Yes, the deposit has been deposited in the corresponding Autonomous Community.
- If the clauses of the lease are unusual, that is, they pursue a long duration.
- if the rent is small in relation to the area and characteristics of the premises whose lease is qualified as simulated.
- yes there is proof of rent payment and your tax return.
What legal consequences does the simulation of the lease contract have?
1.- A difference is made between relative simulation when another hidden business is hidden behind the simulated business and absolute simulation when there is no hidden business.
2.- When it happens that the simulated lease does not hide another different business (absolute simulation), but has only tried to manufacture a title to maintain possession of the premises, the consequence is the nullity of the contract, and consequently if so It has been requested in the lawsuit, the eviction of the "alleged tenant" of the property that he occupies due to the lack of title that protects the possession.
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