New Ecuador law Rentals (abstract)

The National Assembly approved the amendment to the Residential Tenancies Act 26 February 2013.

The amendment to the Residential Tenancies Act(14/03/2012: The President, Rafael Correa sent the total veto the Law Amending the Codification of the RTA) raises issues of interest to landlords and tenants or tenants.

Some of the most important issues:


The landlord may ask for a guarantee of up to twice the value of a monthly. That value must be deposited in an account that the respective municipality or metropolitan district has in the National Development Bank.

In case of dispute when to return the collateral, states that: in case of disputes, either party, it may refer the dispute to the judge or justice of the tenancy and neighborhood relations who will continue the summary process; the return of the security is held under the terms established in the judgment of the judge.

The warranty does not deliver to the lessor if the deterioration of the property is produced by normal use, by the passage of time, the poor quality or defects in the design or manufacturing of goods damaged or deteriorated.

The judges.

It is established that in each district will be the number of judges of tenancy and neighborhood relations determined by the Judicial Council, which fixed the headquarters and territorial jurisdiction in which they exercise their competence.

If the territory is not determined will cantonal competition. In the cantons where there be no judges of tenancy and neighborhood relations, they perform the functions of judges in civil and commercial.

The registration of the lease.

All leases will be registered by the landlord within thirty days of its holding in the Registry Office Leases, the same numbered and bear a chronological record of the registered contracts. In case of failure to register within thirty days, the contract may be signed late on payment of the fine.


The landlord, with at least ninety days prior to the expiration of the contract, shall notify the lessee resolution not to renew once the deadline set. Failure to do so, the contract shall be renewed in its entirety for a period of one year and only once. After this period, the landlord may evict the tenant giving it thirty days to unemployment and property restitution.