Lease Agreements in Ecuador: Legal Requirements for Formalization and Registration

In Ecuador, a lease contract is a legal agreement where a landlord grants a tenant the use of a property in exchange for a monthly rent. According to Article 27 of the Tenancy Law, this agreement can be verbal or written. However, if the rent exceeds the unified basic salary, Article 29 mandates that the contract be formalized as a public deed before a notary.

A lease takes effect as soon as there is an agreement on property use and rent, even if it’s not written. Still, formalizing it offers legal protection, prevents abuse, and allows for judicial remedies in case of disputes.

If the rent does not exceed the basic salary, the contract must be registered with the Municipality (Cadastre Office). If it does exceed it, the contract must be registered with both the Property Registry and the Municipality.

 Key obligations under the Tenancy Law include:

• Respecting the legal rent limit (Art. 17)
• Registering the contract with the relevant authority (Art. 14)
• Providing the tenant with a minimum 2-year lease term (Art. 28)

What if the contract is not registered?
You will lose the ability to request eviction, your claim will lack legal validity, and the court will require rent documentation. You may also be fined up to six months’ rent.

At Quevedo & Ponce, we assist companies and workers to ensure compliance with legal provisions and protect labor rights. Contact us for advice on this important precedent and its impact on the labor field.