Tenancy or lease renewal in Paraguay
Renewing a tenancy or lease agreement in Paraguay generally involves negotiating new terms between the landlord and tenant. If no new agreement is made, and the tenant remains in possession with the landlord's consent, the lease may continue under the same conditions for an indefinite period, with either party able to terminate it with notice.
It is advisable for both landlords and tenants to initiate discussions about renewal or termination several months before the current lease expires. This allows ample time for negotiation of new terms, finding new tenants, or securing alternative accommodation, preventing last-minute complications.
Start 90 days ahead
This lead time allows for negotiations, drafting a new contract, or making arrangements for moving, which can involve significant planning and time.
The process
- 1Review the existing lease agreement for clauses related to renewal or termination notices.
- 2Initiate communication with the other party (landlord or tenant) to express intent regarding renewal or non-renewal.
- 3Negotiate new terms and conditions, such as rent, duration, and any modifications to the original agreement.
- 4If an agreement is reached, draft a new lease contract or an addendum to the existing one, detailing the renewed terms.
- 5Both parties should sign the new contract or addendum.
- 6In cases where no new agreement is signed but the tenant remains in possession with the landlord's consent, be aware of the legal implications of tacit re-conduction as per the Civil Code.
What to bring
- Original lease agreement
- Identification documents of all parties (Cédula de Identidad for Paraguayan citizens/residents, passport for foreigners)
Who handles it
No single government authority directly 'renews' private tenancy agreements; it is a civil contract between parties. The Código Civil Paraguayo (Paraguayan Civil Code) governs contractual relationships.
There is no official fee for renewing a private lease agreement itself. However, costs may include notary fees if the new contract or addendum is to be notarized, or legal fees if assistance from a lawyer is sought for drafting or reviewing the document. These costs vary and should be confirmed with the chosen professional.
What commonly goes wrong
- Be aware of 'tacit re-conduction' (reconducción tácita), where if the tenant remains in possession after the lease expires and the landlord does not object, the lease may be considered renewed for an indefinite period under the same conditions, becoming a month-to-month lease, terminable by either party with notice.
- Ensure all new terms, especially rent increases or changes in duration, are clearly stipulated in writing and signed by all parties to avoid future disputes.
- Understand the notice periods required by the original contract or by the Código Civil for termination, especially if a party does not wish to renew.
Sources
This guide is based on one official source.
Other documents in Paraguay
Tenancy or lease renewal in other countries
Often renewed together
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