Bankruptcy proceedings, dation in payment and termination of leases in accordance with article 13 of the LAU

Abstract

This article analyses the solution given by the Supreme Court in judgment 1374/2024, of October 21, on the effect of a dation in payment carried out within the framework of a collective execution in bankruptcy proceedings, on the existing leases on the properties acquired by the mortgage creditor with special privilege over said assets. Although the Supreme Court considers article 13 LAU 1994 applicable, in the version given by law 4/2013, and understands that the termination of such contracts was due to the termination of the landlord’s right (produced with the transfer of property to the mortgage creditor), it can be considered that the mortgage creditor was subrogated in the lease contracts given the general principle of their subsistence deducible from articles 225.1 TRLC, 1571 CC and 34 LH, being necessary to assess the position that a subsequent sub-purchaser had with respect to them in accordance with article 14 LAU (which regulates the voluntary alienation of the rented property) and 34 LH.