Esteban Rada
Colombian Attorney
Website: www.lawyerscolombia.com
Email: info@lawyerscolombia.com
Telephone: 57-311-7693976
If you are a US citizen looking to do business in Colombia and are interested in leasing a store unit, it is crucial to be familiar with the following information. The Colombian commercial lease contract is governed by specific regulations outlined in the Colombian Commercial Code, which grants special protection to traders due to the vital role of commerce in the economy.
In Colombia, the commercial lease contract is a local document that establishes the agreement between the owner of a commercial property and the tenant. This document must outline the obligations of both parties and include important details such as the duration of the lease and the rental amount.
Colombian regulations regarding commercial lease contracts are subject to the general rules outlined in the Civil Code. These rules are supplemented by specific regulations within the Colombian Commercial Code that aim to protect the investments of traders and investors. The relevant articles pertaining to commercial lease contracts can be found between Art. 518 and 523 of the Commercial Code.
The obligations of the lessor (owner of the commercial property) are outlined in Article 1982 of the Civil Code. These obligations include delivering the leased property to the tenant, maintaining the property in good condition, and ensuring the tenant’s enjoyment of the property is not disturbed. Additionally, the lessor must fulfill the contractual stipulations agreed upon in the commercial property lease contract.
Likewise, the lessee (tenant) has obligations outlined in the Civil Code that must be fulfilled. These obligations consist of paying the rental fee, using the property for its intended purpose, taking care of the commercial property, and returning the property to the lessor in the same condition it was delivered at the end of the lease contract.
When drafting a commercial lease contract, the parties involved have the freedom to include provisions and penalty clauses. However, the contract must include essential elements such as the full names, identification documents, and addresses of both the lessor and the lessee, a detailed description of the property being leased, the purpose of the lease contract, the rental fee and payment method, and the duration of the contract.
In accordance with Article 518 of the Commercial Code, there is a general right to contract renewal for commercial properties that have been occupied for more than two (2) years. However, there are exceptions to this right, such as when the lessee has breached the contract, the owner requires the property for personal use or a different business, or when necessary works cannot be carried out without the property being vacated or demolished for reconstruction.
The lessor has the right to terminate the lease contract if the rental payments are not made, the property is being used for unauthorized purposes, or if it is not kept in good condition. Similarly, the lessee can terminate the lease contract if the lessor fails to fulfill their obligations, such as necessary repairs. The procedure for addressing non-compliance will depend on the specific terms outlined in the contract.
At RADA LAW FIRM, our team of Real Estate Law specialists is dedicated to providing expert advice on drafting commercial lease contracts and including important clauses. By seeking our legal guidance, both parties involved can benefit from strong legal provisions protecting their rights and efficient dispute resolution mechanisms for potential conflicts in the future.
For further information, please don’t hesitate to contact us at:
Esteban Rada
Colombian Attorney
Website: www.lawyerscolombia.com
Email: info@lawyerscolombia.com
Telephone: 57-311-7693976
