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A Letter Informing Lessor of a Grace Period for the Period to Pay Residential Rent is a letter that can be used by a lessee to inform their lessor that they will not be able to pay rent and, instead, will be making use of the minimum of 30 days grace period under Republic Act No. 11469 (the "Bayanihan to Heal as One Act"), as implemented, to pay rent that falls due within the period of the enhanced community quarantine (the "ECQ").
Section 4(bb) of R.A. 11469, as implemented by the President, grants a grace period of a minimum of 30 days for residential rents that fall due within the period of the ECQ. Section 3.3 of Memorandum Circular No. 20-12, Series of 2020, of the Department of Trade and Industry, which outlines the guidelines for the implementation of R.A. 11469, provides that the minimum 30-day grace period will be the 30 calendar days following the last due date of the rent which fell within the ECQ.
This letter can also be used to request for a longer grace period (grace period of more than 30 days). In this case, the lessor has to agree to the additional days. If the lessor does not agree, then the minimum 30-day grace period is still applicable.
This letter is specifically drafted for residential rent that falls due within the period of the ECQ.
How to use this document
The user should enter all the information required to complete the document. Take note that the due dates of the rent should fall within the period of the ECQ in order to qualify for the grace period under R.A. 11469. The user should also enter all the dates when the rent falls due since the minimum 30-day grace period will be the 30 calendar days following the last due date of the rent that falls due within the ECQ.
Once the document is completed, the lessee should review the document. The lessee can then sign a physical copy or sign it electronically. Once signed, the document can be sent by mail, email, or personal delivery (if not prohibited by current laws on social distancing).
Republic Act No. 11469 (the "Bayanihan to Heal As One Act") is the law that authorizes the President to exercise powers that are necessary and proper to respond to the COVID-19 Pandemic. The Memorandum from the Executive Secretary dated 28 March 2020 refers to the implementation of temporary emergency measures under R.A. 11469. The Memorandum authorizes the Department of Trace and Industry ("DTI") to provide for a minimum of 30 days grace period on residential rents that fall due within the period of the ECQ, without incurring interests, penalties, fees, and other charges. Finally, Memorandum Circular No. 20-12 from the DTI provides for the guidelines on the concessions for residential rents and commercial rents of Micro, Small, and Medium Enterprises.
Due to the constant changes in laws and guidelines in order to respond to the COVID-9 Pandemic, it is important to check for the latest applicable laws, issuances, and guidance. If in doubt, please consult with a lawyer.
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