Transitory Regime of Protection of Lessees of Commercial Real Estate
The Presidency of the Republic issued Decree No. 602, whereby it establishes a transitory regime of protection of the lessees of real property intended for the performance of commercial, industrial, or production activities, up to the time when a final regime is issued (the “Decree”). The Decree was published in Official Gazette No. 40,305 of November 29, 2013.
After November 29, 2013, the lease rentals of real property constituted by premises or establishments in which economic, commercial, productive, or services activities are developed may not exceed a monthly amount equivalent to Two Hundred and Fifty Bolivars per square meter (Bs. 250.00/m2). The lease agreements of said real property for which a lease rental higher than the aforesaid has been established will be deemed to be automatically regulated. In the cases in which the monthly lease rental is lower than the aforesaid, the lease rentals agreed upon in the duly executed agreements will remain. With respect to the condominium amount, the Decree determines that said amount may not exceed twenty-five percent (25%) of the price of the monthly lease rental mentioned above.
In addition, the Decree revokes the clauses contained in the lease agreements and condominium documents of real property intended for commerce, industry, or production establishing:
- Lease rentals in foreign currency.
- Valuation of assets or intangible added value.
- Periodic adjustments of the lease rental during the term of the agreement.
- Lease rentals or any types of payments based on percentages of gross or net sales for the commercial activity carried out by the lessee.
- Penalties, royalty or commission stipulated in the lease agreement, condominium document or regulations, as well as any other instrument imposing payments other than the lease rental.
- Fines to be imposed on the lessor for failure to open the commercial premises, for opening out of the corresponding hours, or for early closing of the same.
- Contributions for repair of facades and show windows in case of default.
- Any other penalty, royalty, or commission of parafiscal nature.
Without prejudice to the provisions of the monthly lease agreements of real property constituted by premises or establishments in which commercial activities are developed, the following is prohibited: (a) private arbitration; (b) unilateral termination of the agreement; (c) application of precautionary measures of sequestration of personal or real property connected with the lease relationship, and (d) administration of lease agreements by foreign companies.
The controversies derived from the application of the Decree will be settled, upon the request from the interested party, with the intervention of the Ministry with competence over Commerce.
The Decree became effective upon its publication in the Official Gazette.
In order to access the Decree, please click here.
“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”