ECUADOR Law and Practice Contributed by: Randy Arévalo, Diego F. Amen, Darío Vicuña and Sandra Touma Faytong, VIVANCO & VIVANCO
• Tacit relocation: If the term expires and the ten - ant stays with the landlord’s consent, the lease becomes indefinite. • Eviction notice: To ensure a tenant leaves, the landlord must serve an official notice at least 90 days before the expiration date. Failure to do so automatically renews the lease for a period of two years under the Tenancy Law. 6.19 Right to Terminate a Lease Under the Ecuadorian legal system, the termination of a lease agreement is governed by the principle of contractual autonomy, as limited by the Tenancy Law and the Civil Code. While parties are free to stipulate specific conditions for dissolution, the law provides a set of non-derogable grounds that allow either party to unilaterally seek termination of the relationship. Landlord’s rights (under the Tenancy Law and Civil Code) relate to the following: • non-payment of rent – usually after two consecu - tive months of default; • unauthorised subletting or assignment – transfer - ring the lease without written consent; • unapproved alterations – making structural chang - es without authorisation; • Illegal use – using the property for purposes other than those agreed upon; and • damage to property – causing significant destruc - tion beyond normal wear and tear. Tenant’s rights relate to: • failure to maintain habitability – if the landlord fails to perform necessary structural repairs that make the premises unusable for the agreed purpose; • breach of “quiet enjoyment” – if the landlord or a third party with a better right disturbs the tenant’s peaceful possession; and • hidden defects – discovery of structural flaws that were not apparent at the time of signing. 6.20 Registration Requirements When establishing a lease in Ecuador, both land - lords and tenants must adhere to specific registration requirements and legal formalities to ensure the valid - ity and enforceability of the agreement. These pro -
cesses are essential for defining the rights and obli - gations of each party, and for providing a structured framework in the event of future disputes. • Execution formalities: Most commercial leases are executed via recognition of signatures before a notary public. • Registration: (a) land registry – only leases granted via public deed for a term of more than ten years are typically recorded in the land records to ensure they are opposable to future owners in case of a sale; and (b) tenancy office – all urban leases must techni - cally be registered with the local tenancy office/ municipal council for tax and statistical purpos - es, although in practice many corporate parties rely solely on the notarised contract. • Costs: Recording a lease in the Land Registry involves a fee based on the total value of the lease. These fees are customarily paid by the tenant, unless otherwise negotiated. 6.21 Forced Eviction In Ecuadorian Law, a landlord can initiate an eviction lawsuit in the event of default prior to the date origi - nally agreed. • Timeline: In the Ecuadorian judicial system, an eviction typically takes 6–12 months, depending on the court’s workload and the tenant’s opposition. • Coronavirus restrictions: As of 2026, there are no active eviction moratoriums or pandemic-related restrictions in place. All emergency measures from the 2020–22 period have expired, and the courts have returned to standard procedural timelines. 6.22 Termination by a Third Party Under the Ecuadorian legal system, lease stability is subject to the state’s power of eminent domain and municipal authority over public safety. Private con - tracts are generally robust but can be unilaterally superseded if a property is declared a public utility or poses a documented risk to the community. In such instances, the termination process follows a regulat - ed administrative path that prioritises public interest over private tenure, often triggered by expropriation or
244 CHAMBERS.COM
Powered by FlippingBook