Many expats living in Panama rent instead of owning an apartment or home.
The current COVID-19 national emergency includes an Executive Decree 145 of May 1, 2020. This Decree relates to all rentals in Panama.
Some Panama lawyers published summaries of Decree 145. But, no one explained what happens to a tenant when the rental lease expires during the current COVID-19 national emergency.
I posed some questions to Panama's Top Law Firm, Morgan & Morgan in Panama City. Actually, their office is in Costa del Este in the 23rd floor of the MMG Tower building.
1. What happens to a tenant when a residential lease expires during the COVID-19 national emergency?
2. What If the landlord refuses to an extension or a new lease, does the tenant have to move out?
I got a reply from one of their partners, Ramón Varela who kindly provided me with an answer to both questions.
He replied: "If the lease expires while the ‘declaración de emergencia’ is in force, the landlord cannot vacate the tenant."
Therefore, while Decree 145 remains in force (and for two months after the national emergency ends) all rental contracts remain in force.
This means landlords cannot evict tenants after the lease contract expires during the current national emergency.
In other words, the lease agreement continues after it expires as if it never expired.
Once the emergency ends, the tenant has two months to negotiate and sign a new lease.
Thank you Morgan & Morgan law firm in Panama City for an excellent answer.
If you have questions about Panama real estate legal issues, write to Ramón Varela at:
ramon.varela[at]morimor.com
Stay healthy and safe!
Steven Rich, MBA
The current COVID-19 national emergency includes an Executive Decree 145 of May 1, 2020. This Decree relates to all rentals in Panama.
Some Panama lawyers published summaries of Decree 145. But, no one explained what happens to a tenant when the rental lease expires during the current COVID-19 national emergency.
I posed some questions to Panama's Top Law Firm, Morgan & Morgan in Panama City. Actually, their office is in Costa del Este in the 23rd floor of the MMG Tower building.
1. What happens to a tenant when a residential lease expires during the COVID-19 national emergency?
2. What If the landlord refuses to an extension or a new lease, does the tenant have to move out?
I got a reply from one of their partners, Ramón Varela who kindly provided me with an answer to both questions.
He replied: "If the lease expires while the ‘declaración de emergencia’ is in force, the landlord cannot vacate the tenant."
Therefore, while Decree 145 remains in force (and for two months after the national emergency ends) all rental contracts remain in force.
This means landlords cannot evict tenants after the lease contract expires during the current national emergency.
In other words, the lease agreement continues after it expires as if it never expired.
Once the emergency ends, the tenant has two months to negotiate and sign a new lease.
Thank you Morgan & Morgan law firm in Panama City for an excellent answer.
If you have questions about Panama real estate legal issues, write to Ramón Varela at:
ramon.varela[at]morimor.com
Stay healthy and safe!
Steven Rich, MBA
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