Real Estate Rentals: Changes in Panama


News from Panama / Tuesday, August 18th, 2020

Arguing that the dynamic evolution of covid-19 has changed the socio-economic conditions of the population, a decree was issued to modify the rule that suspends evictions and launches, for the duration of the health emergency.

Executive Decree No. 314 of August 7, 2020, which was published in the Official Gazette, modified articles 2, 5, 6, 7 and 11 of Executive Decree No. 145 of May 1, 2010, through which all procedures for the launching and eviction of real estate for housing use, commercial establishments, professional use, industrial activities and education were suspended, without distinction to the rent.

You may be interested in “Real estate offer: How do prices behave?

After being modified, Article 5 details that “… While the State of National Emergency is in effect and up to two months after the lifting of this measure, tenants affected by the economic crisis caused by the covid-19 pandemic, who are unable to pay their rent, may benefit from Article 2.

Article 2 suspends the procedures for the launching and eviction of real estate intended for residential use, commercial establishments, professional use, industrial activities and teaching, without distinction of the rent.

See “Apartment Rentals: Interests in Central America

The new text of Article 6 specifies that “… After the effects of the Declaration of the State of National Emergency have ceased, and up to two months after it has been lifted, if the tenant refuses to pay the landlord the rental fees that have not been paid during that period and does not comply with the signed mutual agreement, the affected party may appeal to the ordinary courts in the event of non-compliance.

See full publication of “Executive Decree No. 314”.

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