Considering that the health emergency and isolation measures taken in Colombia will affect income of tenants and performance of lease agreements over commercial and residential properties, the Government, by means of Decree 579 of April 15, 2020, established the following temporary measures:
- Suspension of evictions during the period between April 15 and June 30, 2020.
- Deferral of the annual readjustment of rent from April 15 and June 30, 2020.
From July 2020 tenant shall pay the rent with the corresponding annual readjustment, including the amounts that were not charged due to the deferral period.
- The parties shall agree upon the special conditions for the payment of the rent corresponding to the period between April 15 and June 30, 2020. These agreements may not cause default interest, nor penalty or sanctions arising from law or the agreement of the parties.
If the parties do not reach an agreement, tenant shall pay the full amount of the rent. In case of default, landlord may not charge default interests, nor penalties or sanctions; however, tenant shall pay term interests at a rate of 50% of the interest rate (Tasa de Interés Bancario Corriente) certified by the Superintendence of Finance for common and consumer loans.
- Extension of the term of leases whose termination is due within the State of Emergency, until June 30,2020, unless the parties agree otherwise.
- Suspension of leases in which the delivery of the property is due within the State of Emergency. The term of these leases shall begin on June 30,2020, unless the parties agree otherwise.
These measures are applicable to commercial leases in which the tenant is an individual, a micro, small or medium enterprise, as set forth under Decree 1074 of 2015, or a non-profit entity registered pursuant to law.