SUSPENSION OF REAL PROPERTY RENTAL PAYMENT
Resolution No. 023, issued by the Ministry of the Popular Power for Habitat and Housing, was published in Official Gazette No. 41.852 of April 1, 2020 (the “Resolution”). The Resolution suspended up to September 1, 2020, the payment of rentals of real property used as principal dwelling house.
The Resolution established that Principal Dwelling House will be understood as a dwelling house that is generally and permanently occupied, which condition is to be proven to the National Superintendence of Dwelling House Lease (Superintendencia Nacional de Arrendamientos de Vivienda – SUNAVI) by the parties.
By virtue of the suspension established by the Resolution, the Ministry of the Popular Power for Habitat and Housing, acting through its assigned entity, the National Superintendence of Dwelling House Lease (SUNAVI), will proceed to establish the specific conditions for the implementation of the payment of the rentals as per the methods established in the Decree, which are listed below:
– Payment of the rentals may be restructured or financed through an agreement between the parties (lessor-lessee). This restructuring or financing may not end at the time when the period of time prescribed in the Decree for suspension of the payments ends, that is, the full payment of the rentals may not be immediately required upon the end of the suspension.
– A gradual and progressive payment of the rental may be established through percentages allowing the full payment of the whole amount of the suspended payment. These percentages will vary with the consensus of the parties, starting with the payment of ten percent (10%) and successively increasing said percentage until reaching the total amount of the rentals not received by lessor.
– Likewise, the parties may establish as payment method, after the suspension has ceased, a double monthly payment of the rental until reaching the total amount not received by lessor.
– The deposit or advance fund may also be established as payment method when a fund to that end is created, in which fund the parties establish that the money deposited, whatever the amount of the same may be, and even if the fund was created before the suspension, will be used to pay the rentals accrued during the suspension.
– Payment of special installments by lessee may be established as another form of rental payment restructuring, which installments will be set during the agreement of suspension. The amount of said installments may vary (the same amount of the rental or a higher amount), as well as their frequency (on a monthly basis, twice a month or on a quarterly basis).
– In the event of discrepancies between the parties at the time of establishing the payment conditions, the SUNAVI will establish, through conciliation boards, the procedure to be followed for the execution of the agreements resulting from the suspension.
– All agreements entered into by reason of the suspension decreed must be filed with the SUNAVI’s Legal Consultancy Office.
The amounts agreed by any of the different payment methods prescribed in the Resolution may not be subject to increase for default interest or any other compensatory item.
The Resolution became effective upon publication in the Official Gazette and will remain in effect for six (6) months.
In order to access the Resolution, please click here.
Should you have any question or comment or require further information, please contact the partner in charge of your account via email.