Common Mercantile Formalities & Triple Net Leasing (NNN) in Panama

Formalizing a residential lease for housing in the Republic of Panama is governed primarily by Law 93 of 1973 (effective October 10, 1973) and the Civil Code, which establish the legal framework for agreements between landlords and tenants.

Strict Written Liability

Every residential lease agreement must be executed in writing as required by Article 5 of Law 93 of 1973. This ensures that the rights and obligations of both the landlord and the tenant are clearly defined. Furthermore, to comply with administrative requirements, the contract must be registered with the Ministry of Housing (MIVIOT) per Article 6 of Law 93. The Civil Code also governs general contract principles applicable to these residential tenancies.

Triple Net Lease (NNN) Stipulations

While Triple Net Lease (NNN) structures are common in commercial real estate, they are not standard for residential properties in Panama. Instead, residential leases focus on housing stability and tenant protections under Law 93 of 1973 and the Civil Code. These agreements typically involve a fixed monthly rent where the landlord is responsible for ensuring the property is habitable, while the tenant is obligated to maintain the premises. The obligation for these payments falls on the occupant:

• Habitability and Maintenance.
• Timely Rent Payment.
• Condominium Fees (if applicable), governed by Ley 284 de 2022 (Propiedad Horizontal).

Alternative options include a fixed monthly rent where costs are integrated. Managing these structures requires compliance with P.H. (Propiedad Horizontal) administrative boards, formalizing corporate liability annexes with Landager as your foundation.

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