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Brazil: The New Real Estate Rental Law
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By Jose Santiago
May 30, 2010
The new real estate rental law, known in Brazil as "Nova Lei do Inquilinato" came into effect on January 25, 2010 and since then it must be applied to both new and old rental/lease agreements of real estate properties all over Brazil. Here are the major changes between landlord and tenant created by this new law:
1. The tenant who did not provide the landlord with any contract guarantee (such as "fiança, seguro fiança or caução") is subject to a lawsuit whereby he or she must pay the landlord within 15 days. No other legal remedies are available to tenant, either pay or be evicted. Before this new law an agreement without a guarantee would take a landlord forever to be able evict a tenant;
2. Currently if a tenant is behind only one payment they are already subject to an eviction lawsuit and have 15 days to pay or be evicted;
3. In the case that the tenant decides to rescind the agreement before its term, he or she will have to pay a fine proportional to the period left before the contract expires;
4. Landlords now have to pay to tenants an indemnification if they rescind the contract before its term, according to the cases already prescribed by the old law, such as for his or her own use/necessity.
With these new rules more landlords will offer properties to more tenants, and there will be less bureaucracy and red tape. Landlords will now start offering their properties without the necessity of any rental guarantee, which will help not only the real estate market, but also anyone looking for a real estate property for rent.
For foreigners or residents, even temporary residents in Brazil, it has always been impossible to get one of the rental guarantees in Brazil. This caused problems in finding and also renting a property here, unless, of course, someone would give their property as collateral ("fiador") to the Landlord as guarantee, which is not common at all.
However, now the rental process has been simplified and the eviction lawsuits have been clarified it will make landlords less strict. They will not ask for the old guarantees that always created barriers and headaches when finding and renting a property in Brazil.
Jose C. Santiago
Attorney at Law
www.lawofficeinbrazil.com
DISCLOSURE: All information herein given is merely for elucidative purposes. It reflects current Legislation, which can be modified in the future. In case of questions regarding a particular case/issue, always consult with your own attorney.
Previous articles by Jose:
Brazil: The 2010 Income Tax Return Rule Changes
How to Get Divorced in Brazil
Brazil: Advantages and Disadvantages of Importing a Vehicle to Brazil
Changes to Investment Visa Law
How Foreign Individuals Can Invest in the Brazilian Stock Market
Non-Resident Bank Accounts for Foreigners in Brazil
Brazil: General Guidelines for Foreigners who Intend to Open a Brazilian Corporation
Brazil: Myths and Facts Regarding the Investment Visa Program
Brazil: The Importance of a Title Search When Buying Real Estate
Brazil: Restrictions for Foreigners When Buying Rural Properties
Brazil: Having a Child Abroad for US Citizens
Careful When Buying Pre-Construction Properties in Brazil!
Understanding Brazil: Sending Money Home from a Real Estate Deal
The Closing Process in Brazil
Permanent Visas in Brazil
Brazil: International Money Transfers
Brazil: Squatters Rights (Usucapião) - Be Aware!
Brazil: Annual Procedures to Keep Your CPF Number Valid
How to Hire a Lawyer in Brazil Part 3
How to Hire a Lawyer in Brazil Part 2
How to Hire a Lawyer in Brazil Part 1
Tax Information for Foreigners in Brazil Part 4
Tax Information for Foreigners in Brazil Part 3
Tax Information for Foreigners in Brazil Part 2
Tax Information for Foreigners in Brazil Part 1
8 Reasons to Invest in Brazil‘s Real Estate
The Brazilian Resident Investor Program for Foreigners
Brazil: Annual Required Procedures to Keep Your CPF Number
Legal Aspects of Acquiring Real Estate in Brazil
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5/30/2010
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