October 16, 2021


When we are going to rent a commercial premises we have many doubts. Especially because it is different to rent an apartment to do it with a local. For example, what is the contract that the parties must sign? What duties do I have as a landlord and what are those of the tenant? How much time in advance should I ask for the premises and how long does he have to vacate it?

The answer to all these doubts is in Decree 410 of 197 , also known as the  Commercial Code , which establishes in its Third Book, Title I and Chapter I (from articles 518 to 524) the provisions for commercial establishments and your  legal protection .

Below we answer your questions and explain what the most important points of the standard are.

First, what can you call a business establishment? This is the name given to the set of goods organized by the entrepreneur to carry out the purposes of the company.

To lease the premises, a commercial premises lease contract is necessary, everything will be stipulated there so that later there will be no doubts or room for misunderstandings.

And to give you an idea of ​​the important points that cannot be missing in the contract, we leave you a contract model for you to use.


Rights of the tenant

The  Article 518  speaks of the right to  renewal  of a  contract  lease. 

In this case, the entrepreneur who has occupied  a property with the same commercial establishment for no less than  two consecutive years , will have the right to renew the contract upon expiration of the same, except in the following cases:

1. When the tenant has  breached  the contract.

2. When the owner needs the property for his  own room  or for an establishment of his intended for a company substantially different from that of the tenant.

3. When the property must be  rebuilt  or  repaired  with necessary works that cannot be carried out without delivery or vacating or because it is going to be demolished due to its state of ruin or for the  construction  of a new work. 


Differences in renewal

For its part, article 519 establishes that the differences that occur between the parties at the time of the renewal of the lease will be decided by  verbal procedure , with the intervention of experts.

How long does a tenant have to vacate a business premises?

Article 520 says that in the cases provided for in ordinals 2 and 3 of article 518, the owner will  evict the tenant  with no less than  six months prior  to the date of termination of the contract, under penalty of it being considered renewed or extended. under the same conditions and for the same term as the initial contract.

The cases in which the property is occupied or demolished by order of a competent authority are excepted from the provisions of this article.

Duties of the owner

In the event that a premises is repaired, rebuilt or is part of a new building, article 521 establishes that the tenant shall have the right to be  preferred , under equal circumstances, to any other person in the lease of premises,  without  Obligation to  pay premiums  or special values, other than the rental fee, which will be set by experts in the event of disagreement. 

For the purposes of this article, the owner must  inform  the merchant, at least  sixty days  in advance, the date on which he can deliver the premises, and he must give notice to  the merchant, no less than thirty days  prior to said date, whether or not you exercise the right of first refusal for the lease. 

If the rebuilt premises or the new building are fewer in number than the previous ones, the oldest tenants who exercise the right of first refusal will exclude the others in order of seniority.

Lessee compensation

In accordance with article 522, if the owner does not give the premises the indicated destination or does not start the works within the  three months following  the date of delivery, he must compensate the tenant for the damages caused, according to the estimates of experts. . 

The same compensation must be paid if in those same cases he leases the premises, or uses them for commercial establishments in which  activities similar  to those of the lessee are carried out. 

In the estimation of the damages, in addition to the loss of  profits  arising from the merchant, the essential expenses for the new installation, the  compensation of the workers dismissed  on the occasion of the closure or transfer of the establishment and the current value of the necessary improvements and useful that you have made in the premises delivered.

The respective property will be especially subject to the payment of compensation and the corresponding claim must be registered as provided for those dealing with property ownership.

Duties of the tenant

Sublease of premises

The lessee  may not ,  without the  express or tacit authorization of the lessor, fully sublet the premises or real estate, nor give them, in a way that harms the rights of the lessor, a destination other than that provided for in the contract, as stated in article 523.

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