Legal Guide for Leasing Real Estate in Quito
Leasing real estate is a common practice in Quito, for both residential and commercial purposes. However, many contracts are entered into without a thorough understanding of the legal aspects that regulate this relationship, which can lead to conflicts between landlords and tenants. This guide provides an overview of the legal elements that must be taken into account when signing a lease agreement in Ecuador.
1. Drafting of the lease agreement
The contract must be clear, written and signed by both parties. It must include detailed information about the leased property, the amount of the monthly fee, the form and date of payment, the term of the contract and the responsibilities of each party. In Ecuador, lease contracts are regulated by the Civil Code and other specific regulations.
2. Term of the contract
The law allows the contract to be signed for a fixed or indefinite period. For greater legal certainty, it is recommended to establish a fixed term, usually one to two years, renewable if both parties agree. It is important that the term is stipulated in the contract to avoid ambiguous interpretations.
3. Escrow
In practice, it is common to request a month’s rent as a security deposit. This amount must be returned to the tenant at the end of the contract, as long as there is no damage to the property or outstanding debts. Although it is not required by law, it must be clearly stated in the contract.
4. Obligations of the lessor
The lessor has the obligation to deliver the property in good condition and guarantee the peaceful use of the property throughout the term of the contract. In addition, they must take care of the structural or necessary repairs to maintain the functionality of the property, unless otherwise agreed.
5. Obligations of the Lessee
The tenant must pay the agreed value on time, keep the property in good condition, and allow reasonable inspections by the landlord. It must also comply with the established use of the property (housing, office, commercial premises, etc.).
6. Contract registration
In Quito, it is not mandatory to register the lease in the Land Registry. However, doing so can provide greater legal certainty, especially in long-term contracts or when a clause is sought to be judicially enforced.
7. Termination of the contract
The contract may be terminated by expiry of the term, by mutual agreement, or by breach of the established clauses. It can also be terminated early, but the stipulations of the contract must be respected or, failing that, the corresponding legal procedure must be followed.
8. Conflict resolution
In case of disputes between landlord and tenant, the ideal is to try a direct solution. If no agreement is reached, judicial recourse may be had to the courts through a summary oral process. Having a well-drafted contract and adequate legal advice significantly reduces the risk of conflicts.
Conclusion
Signing a lease agreement with clear legal bases is essential to protect the interests of both parties. Whether you rent an apartment, a house or a commercial premises in Quito, it is advisable to have the support of a lawyer to review or draft the contract and make sure that everything is in order.
