5 Key Facts About Real Estate Leasing

• Published date: 10 March 2023
• Author: Lilah Levin
• Law Firm: Blogs Alemán, Cordero, Galindo & Lee

5 Key Facts About

Real Estate Leasing

Law No. 93 of October 4 of 1973

The lease is one of the most used law concepts

and present in people’s the day to day. It is an

agreement of wills between the parties in which

they can agree on things, works or services. In

accordance with the Panamanian Civil Code, in

the leasing of things, one of the parties (called

a landlord) is requiree to give the other (called

a tenant) the enjoyment or use of a thing for a

certain time and a certain price.

The rules relating to the leasing and subleases of

private real estate intended for housing, com-

mercial establishments, professional use, indus-

trial and teaching activities are of public order

and are regulated by Law No. 93 of 4 october

1973.

Among the main topics of this regulation we hi-

ghlight the following 5 key points :

1. Lease agreements must be in writing.

2. The lessor has the obligation to register lea-

ses with the Ministry of Housing and Land

Use (MIVIOT).

3. Against the registration of the lease, the les-

see has the obligation to enter in the MIVIOT

a sum equal to the lease fee as a deposit. This

sum is returned to the depositor at the end

of the lease, except in the case of a claim by

the lessor for fees owed or damages caused

by the lessee other than those resulting from

the normal use or wear of the goods, which

must be verif‌ied.

4. The term and extension of the lease of real

estate properties intended for habitation is

mandatory for the landlord and waivable for

the tenant at any time, no other obligation

than to give the landlord prior written notice

not less than thirty (30) calendar days prior to

vacating the rented property.

5. Properties may be sublet in whole or in part,

unless otherwise expressly agreed in the lea-

se agreement. The total sublease falls on the

entire property and can only be held with

one person. While the partial sublease of one

or more rooms or premises can be held with

dierent people. In the case of subleases, the

tenant must have the prior written consent

of the landlord to be able to enter into such

contracts. In the leasing contracts of com-

mercial, professional, industrial and teaching

premises, the clause prohibiting subletting is

not valid.

Author: Lilah Levin legal assistant in Alcogal