Proprietor's and tenant's law in Brazil

Rent: Can rentals be freely agreed between landlord and tenant in Brazil?

The initial rent value can be freely agreed between the landlord and the landlord. In Brazilian Real, the currency value of the lease shall not be associated with the variation of the foreign currency exchange, nor with the minimum wage rate. properties for sale

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Any reorganization of the rent by contract must be performed annually, based on the index provided for in the contract. The index provided for in the rent adjustment contract cannot exceed the official rates. If the contract silences the rate or disagrees with the value achieved, both the owner and the renter may judicially request its revision, on the basis of the fair market price, provided that this has been three years after the date on which the contract was signed. Note that either the revision can increase or decrease rent.

The landlord cannot demand that the rent be paid in advance except for temporary rentals not exceeding 90 days.

Deposits

The deposit is usually equal to the value of the lease for three months, and will be returned to the tenant at the end of the contract.

Other types of guarantees relating to the lease of real estate are a security bond, and a guarantor, i.e. a third party responsible for paying the tenant's unpaid rental debts. Both companies and individuals have the right to be guarantors but, given the risk, they are generally a close friend or family member of the renter. At least two real properties must be available to the guarantor.

By law, only one type of guarantee may be requested by the landlord under penalties for nullity of the clause.

In Brazil, what rights have landlords and tenants, especially for contract duration and expulsion?

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Residential rental contracts usually last at least 30 months. The owner may recuperate his property without stating reasons at the end of that period and is not obliged to renew the contract. However, if the tenant stays on the property for more than 30 days without notification of the owner's resignation, the contract will be automatically renewed but for an undetermined period (to which different regulations on eviction apply, see below).

The lease will last for less than 30 months, although this is rare. In that case, if a written document does not request the vacancy of the property, the lease will renew and the property may only be recovered in the following special circumstances:

the property must be recovered for personal or family use, as long as it is the sole property;

for the demolition by the government or the licensed reconstruction that increases the area of the premises constructed to at least 20% or becomes a hotel or other similar business which increases the area constructed by 50%;

If the lease lasts for more than 5 years;

Mutual consent;

Non-payment or breach of contract

The parties may also impose a financial penalty for breach of the lease contract, which is usually the amount of three months' rent. Also very common is to agree that if the tenant has been at least one year since the contract was signed, he will be exempted from the penalty for leaving the property before the contract period.

Brazilian law gives the tenant a right of first choice if the landlord wants to sell the property. The owner must therefore notify the tenant, giving him 30 days to show his interest.

Locators must ensure that their contract is registered with the property registry office as a result of the possibility of selling the property for rent. The new buyer is not obliged to honor the lease agreement if not registered and only needs to give the tenant 90 days notice to surrender the estate.

Non-payment EVICTION OF RENT

Duration until process service 30 is completed

Trial Duration 60

Enforcement Duration 30

Total Evict Tenant Days 120

Courts: Project Lex Mundi

How effective is the legal system in Brazil?

The duration of lawsuits relating to the eviction of tenants varies by state. Due to the volume of lawsuits, courts in Brazil tend to be saturated.

In some cases, expulsion can be determined by an order that gives the tenant 15 days to leave, for example when the original tenant dies leaving unregistered persons at the property.

Legislation

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Law 8.245/911 lays down the rules for the lease of urban real estate and its legal procedures. The Civil Code may also be used as a subsidiary law source.

Short History: Brazilian landlord and tenant law recent changes

In 1991 the legislation currently in force consolidated all urban property rental matters, including the legislative proceedings under law 8.245/91, known as Lei do Inquilinato, into one law.