Initiative to Approve the Commercial Leasing Law

Juan Alberto Ayerdi and Mario Archila, attorneys in Guatemala and experts in litigation and dispute resolution, share this article about the legislative initiative presented to the Congress of the Republic of Guatemala, which seeks to approve the new "Commercial Lease Law" and its procedural implications. 

On September 5, 2024, the legislative initiative 6449 was presented to the Congress of the Republic of Guatemala, through which it seeks to approve the "Commercial Lease Law." This initiative already has a favorable opinion from the Economic and Foreign Trade Commission and is pending further progress in the formation and sanctioning process of the Law. 

In summary, this initiative aims to create a new special process for commercial leases and subleases, with the purpose of expediting and simplifying judicial processes related to eviction and those arising from contractual breaches, reducing the costs associated with litigation, and addressing the issue of abandoned commercial property. This initiative is specifically focused on commercial leases, such as warehouses and retail spaces, and does not apply to residential units. 

The special process for commercial leases and subleases related to the eviction and return of real property—which the parties must expressly submit to—can be initiated upon failure to pay rent, maintenance fees, or any other charges related to the property. The goal of this process is the immediate eviction and return of the leased property to lessor. 

The process is conducted before a Notary, with all days and hours considered working hours, and the tenant can only defend by providing documentation proving the payment of the claimed amount, or arguing that the obligation has expired due to statute of limitation. Additionally, personal notification is allowed through the publication of notices in the newspapers, and the tenant is given a reduced timeframe to vacate and return the property, under the penalty of having an eviction order issued, which will be executed by the judiciary with the assistance of the public force. Furthermore, if movable property is found on the premises, the landlord may dispose of it in a manner that best suits their interests, as if it were the rightful owner. 

It is important to monitor the progress of this initiative in the Congress of the Republic. 

The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers