New Leasing Law in Chile: Protection and Efficiency

The New Chilean Rental Law: "Give me back my house"

In Chile, the new Leasing Law, known as "Give me back my house" (Law No. 21,461), addresses issues related to rental contracts and evictions of delinquent tenants. The legislation introduces measures to streamline eviction procedures and reduce landlords’ financial exposure when tenants fail to meet payment obligations.

Main Features of the Law

A primary feature of the law is an expedited eviction process designed to accelerate removal of tenants who do not pay rent or utilities. Landlords may initiate eviction proceedings when tenants are in default or have caused damage to the property, and courts are instructed to resolve these cases within a shorter, more efficient timeframe than under previous procedures.

The law permits restitution of the property at the end of a lease or when the property is partially destroyed or rendered unusable due to tenant negligence. It contemplates the possibility of early return of the premises and, where required by court order, the use of public force to enforce evictions.

Eviction proceedings begin with a civil complaint that should include the landlord’s and tenant’s names and addresses, evidence of unpaid amounts, and a formal payment demand served to the tenant. If the tenant does not respond or pay within the legal timeframe, the court may issue an eviction order.

Tenants retain the right to contest eviction by filing a written opposition to the suit and presenting evidence or legal arguments. If the court considers the tenant’s objections insufficient, it may summarily reject them and proceed with eviction.

Including a copy of the current certificate of title in lease agreements can facilitate eviction proceedings in cases of tenant default. That document certifies property ownership and helps establish the rightful owner during legal processes.

Advantages of attaching the current ownership certificate to the lease contract

Legal Clarity:

Attaching the current certificate of ownership gives clear proof of title, reducing disputes about who holds legal rights to the property.

Eviction Facilitation:

When a tenant breaches lease terms, the certificate serves as supporting court evidence to help expedite eviction and restitution actions.

Transparency:

Including the certificate increases transparency in the lease by clearly stating the landlord’s rights and the tenant’s obligations.

Trust:

Providing the ownership certificate can give both parties greater confidence by clarifying the property's legal status.

Procedure:

Obtaining the Certificate of Ownership:

The owner must request a current certificate of ownership, an official document issued by the Conservador de Bienes Raíces that shows property ownership and any liens or encumbrances.

Incorporation into the Lease:

A copy of this certificate should be attached to the lease at signing to ensure the contract reflects the property’s legal status.

Regular Update:

It is advisable to keep this document updated and renew it periodically so it remains current and legally valid.

Implementation and Criticism

While the "Give Me Back My House" law has been commended for improving the speed and efficiency of eviction proceedings, critics point to challenges in implementation, such as initial difficulties in judicial enforcement and the relatively high costs of legal action. Despite these concerns, many consider the law an important step toward strengthening landlords’ ability to enforce lease agreements.

Practical Steps for Homeowners

For landlords facing non-compliant tenants, the following steps can help protect rights and streamline enforcement:

• Documentation: Ensure lease agreements are complete and well-documented, using electronically verified signatures when available.

• Request for Payment: Serve a formal payment demand that specifies owed amounts and sets a clear deadline.

• Legal Action: If the tenant defaults, file a civil suit for eviction and restitution with all relevant supporting documents.

• Legal Assistance: Given the law’s procedural details, consult a lawyer specializing in property and lease law to navigate the process effectively.

Understanding and correctly applying these new regulations can help protect landlords’ rights while contributing to a fairer and more efficient rental market in Chile.