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Legal Summary 07/2020

Legal Summary 07/2020

Decree number 3 whereby rental payments of property used as primary residence and for commercial purposes are suspended.

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Decree number 3, issued within the frame of the overall alarm status declared for the purposes of attending the coronavirus (COVID-19) health emergency, whereby rental payments of property used as primary residence and for commercial purposes are suspended.

March 30, 2020

Decree number 3 was published on March 23 of 2020 in Official Gazette of the Bolivarian Republic of Venezuela N° 6.522 Extraordinary, within the frame of the overall alarm status declared for the purposes of attending the coronavirus (COVID-19) health emergency, whereby rental payments of property used as primary residence and for commercial purposes are suspended until September 1, 2020.

The decree sets forth that as a result of the COVID-19 pandemic, commercial activity has been significantly reduced for all productive sectors nationwide “…thereby causing hardship for traders rendering services and Venezuelan families at the time of meeting their rental due dates. Consequently, immediate action by the Venezuelan State is necessary to ensure continuity and workability in this sector”.

Therefore, rental payments of property used as primary residence and for commercial purposes are suspended until September 1, 2020. During the suspension period no rental payments due, overdue or other monetary considerations agreed upon in leases will not be enforceable.

A six (6) month suspension is also decreed for the provisions contained in article 91 of the Law for Regulating and Controlling the Lease of Premises for Residential Purposes and for letter “a” of article 40 of the Law for Regulating the Lease of Premises for Commercial Purposes, which contemplate the grounds for eviction in each case respectively.

In addition, the parties may mutually agree upon special terms involving this suspension period in each lease, thereby establishing new payment schedules or refinancing conditions. Under no circumstance may tenants be obligated to make rental payments in full or other accumulated consideration immediately at the expiration of the suspension period established herein.  

The National Superintendency for the Leasing of Premises for Residential Purposes (SUNAVI, for its Spanish acronym) and the National Superintendency for the Defense of Socio-economic Rights (SUNDDE, for its Spanish acronym) are hereby instructed to settle any conflicts raised between those unable to mutually agree upon a new rental payment schedule or refinancing conditions involving the leases subject to the provisions of this decree.

Enforcement of this suspension period may cease in the event that commercial activity is resumed prior to the expiration date established in this decree, as well as in those cases involving commercial establishments that given the nature of the activity conducted therein, the guidelines and exceptions established previously by the National Executive, are currently operating on a regular basis.

This decree came in full force and effect as of the date of publication in the Official Gazette of the Bolivarian Republic of Venezuela.

Versión en español

Lee la versión en español.

© 2020 Ostos Velázquez & Asociados, RIF: J-00256910-7. KPMG Escritorio Jurídico, RIF: J-30435724-9. Derechos Reservados. KPMG International Cooperative (“KPMG International”) es una entidad suiza. Las firmas miembro de la red de firmas independientes de KPMG están afiliadas a KPMG International. KPMG International no provee servicios a clientes. Ninguna firma miembro tiene autoridad para obligar o comprometer a KPMG International ni a ninguna otra firma miembro frente a terceros, ni KPMG International tiene autoridad alguna para obligar o comprometer a ninguna firma miembro.

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