If the tenant of commercial premises dies, can the heirs carry on the business? And if the landlord dies?

If the tenant dies, the tenant's heir can take over the lease until it ends, provided that he or she continues the activity carried on in the premises and notifies the landlord in writing within two months of the death. The lease may have excluded this right or regulated it differently. If the landlord dies, the lease continues unchanged and the landlord's heirs take his or her place. The exception is a lease signed by someone who only had the usufruct of the premises, which may end on that person's death.

Alburquerque Abogados

José Manuel Alburquerque
Landlord and tenant

If the tenant dies

To stay on in the premises, a person must:

  • Be an heir or a legatee, the latter being the person to whom the will leaves a specific asset, such as the business. Being a relative is not enough.
  • Continue the activity that was carried on in the premises.
  • Notify the landlord in writing within two months of the death. It is a short time limit and it is best not to leave it to the last minute.

Whoever carries on takes the tenant's place, with the same rights and obligations, until the lease ends. If none of the heirs wishes to continue the business, the law does not expressly say what happens to the lease. The prudent course is for the heirs to speak to the landlord as soon as possible and agree in writing on the handover of the premises and anything still to be paid. When signing a new lease, it is advisable to provide for this situation.

If the tenant is a company, the death of a shareholder or of the director does not affect the lease. And if it is an old-style protected tenancy (“renta antigua”), dating from before May 1985, different rules apply.

If the landlord dies

  • The lease continues on the same conditions and for the same period. The heirs take the landlord's place, collect the rent and must honour the lease.
  • Until the estate is divided, the rent belongs to all the heirs. They should tell the tenant in writing whom to pay and into which account.
  • If the person who let the premises was not the owner but only the usufructuary, that is, had the right to use them and to collect the rent from them, the lease may end when the usufruct ends. The typical case is a widower or widow with the usufruct of the spouse's estate, which ends on his or her death. When signing, the tenant can check at the “Registro de la Propiedad”, the Land Registry, who the owner is.

This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.