Considering that the health emergency and the established restrictions affect income generation of tenants of commercial premises, the Colombian Government, by means of Decree 797 of June 4th, 2020, allowed tenants to unilaterally terminate the lease agreements over commercial premises, until August 31st, 2020.
This possibility is applicable only for commercial premises lease agreements of commercial premises, in which tenants from June 1, 2020, are not allowed to perform the following economic activities.
- Bars, clubs, billiards, casinos, bingos and video game terminals.
- Gyms, swimming pools, spas, saunas, spas, sports centers, amusement parks, and children's playgrounds.
- Cinemas and theaters.
- Public or private events involving crowds, including religious services with these features; and
- Accommodation and food services.
Due to the termination of the lease agreement, the tenant shall pay an amount equal to one-third of the penalty clause of the lease agreement. If the agreement does not contain a penalty clause, the tenant shall pay an amount equal to one rental fee.
In order to terminate the lease agreement, the tenant shall be up to date with all payments due, including but not limited to the rent and utilities at the termination date of the agreement.
Finally, financial leasing agreements are excluded from the scope of Decree 797 of 2020