New Real Estate Rental Law - Law Number 12.112/09
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 landlord with any contract guarantee (such as "fiança, seguro fiança or caução") is subject to a lawsuit whereby he or she must pay landlord within 15 days, no other legal remedies are available to tenant, either pay or is evicted. Before this new law, an agreement without a guarantee, would take forever for a landlord to be able evict a tenant;
2) Currently, if a tenant is behind only one payment is already subject to an eviction lawsuit and 15 days to pay or be evicted;
3) Now, in case tenant decides to rescind the agreement before its term, he or she will have to pay a fine proportionally to the period left before the contract expires;
4) Landlords now shall pay to tenants an indemification if landlord rescinds the contract before its term, according to the cases already prescribed by the old law, such as for his or her own use/nessecity.
With this new rules more landlords shall offer their properties to more tenants, there will be less bureacracy and red tape. Landlords shall 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 on-residents, even temporary residents in Brazil, it has always been merely impossible to get one of the rental guarantees in Brazil which caused all the headaches in finding and also renting a property here, unless, of course, someone would give their property as collateral ("fiador") to the Landord as guarantee which is not common at all.
However, now the rental process was indirectly simplified and the eviction lawsuits were perfected and that shall make landlords less strict. They shall not ask for the old guarantees that always creates barriers and headaches when finding and renting a property in Brazil.
PUBLICATIONS
Acquiring Real Estate in Brazil
Acquiring a Tax ID (CPF) Number in Brazil
The Closing Process in Brazil
Divorce (Dissolution in Florida)
How to get divorced in Brazil
How to hire an Attorney in Brazil
The importance of Title Search
International Money Transfers to Brazil
New Real Estate Rental Law
Non-Resident Bank Accounts
Careful when buying Pre-Construction
Restrictions when buying rural Properties
Returning Money from a Real Estate Deal
Squater Rights (Usucapiao) - Be Aware!
State Tax on foreign money transfers
