Commercial eviction costa rica | Landager

Since the enactment of the primary governing legislation on 17 August 1995, evicting a commercial tenant requires precision. Because commercial leases often involve higher dollar amounts and complex maintenance distributions (Triple Net leases), the "breach" is often more than just rent. It could be failure to maintain insurance or a violation of local zoning laws. In Costa Rica, the "self-help lockout" is just as illegal for storefronts as it is for apartments. Do not let the property's commercial nature trick you into thinking you can simply change the locks. You will be sued for "lost profits" (lucro cesante) which can be astronomically high for a functioning business.

One advantage in commercial evictions is the "representative" rule. Most commercial tenants are S.A. or S.R.L. corporations. Serving the legal representative is usually more straightforward than finding a residency-hopping individual tenant, potentially shaving weeks off the notification process.

Evicting a Commercial Business Tenant

The commercial eviction process is governed by the General Law of Urban and Suburban Leases (Law 7527) and the Monitorio Arrendaticio (Express Eviction Law). Both residential and commercial tenancies are regulated by Law 7527 (Article 4). Businesses are treated as equal parties in a contract, and commercial evictions are handled through the standard judicial eviction process (Desahucio) or the expedited Monitorio process.

The Danger of Lost Profits (Lucro Cesante)

NEVER perform a self-help lockout on a business. If you change the locks on a pharmacy or a retail store, you are stopping their ability to earn money. A judge could order you to pay for their "lost profits" during the time they were locked out, which could easily exceed several years of rent. You must follow the court process to the letter.

Seizing Assets (Embargo)

One advantage of commercial eviction is the ability to "embargo" assets. If the tenant owes six months of rent, your lawyer can ask the judge to freeze the company's bank accounts or seize the vehicles and equipment inside the unit as a guarantee for the debt. This is a powerful point that often leads to a settlement before the final eviction.

The Notarized Lease Advantage

In Costa Rica, commercial leases, especially when notarized (signed before a notary in a "Protocol"), can facilitate an expedited judicial eviction process known as the Monitorio Arrendaticio (Express Eviction Law). This process is designed to be faster than ordinary civil lawsuits for lease-related disputes, particularly for non-payment of rent or other agreed-upon fees (such as utilities and condominium fees). Upon filing a 'Monitorio Arrendaticio' suit, the court serves the tenant, who typically has 15 days to present a defense or make payment. If the tenant fails to respond or deposit the owed amounts, an eviction order can be issued without a full, lengthy trial. However, this is a summary judicial process, not a complete bypass of judicial review or the tenant's opportunity for defense. For high-value commercial properties, this is the only way to sign a lease.

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