Within the last years, the State Courts of São Paulo and Rio de Janeiro have modified its interpretation when it comes to the termination of agreements arisen out of the acquisition of off-plan properties.
The profile of the purchaser has been taken into consideration and Courts have been giving a different legal treatment to the individuals who acquire properties for their personal use. Under such circumstances, the Consumer Defense Code have been applied and Plaintiffs have been reimbursed in up to 90% of the installments paid, while to those who purchased the off-plan property as an investment, have been granted approximately 70% of the installments paid. In addition to that, Courts have been granting return of such amounts by the Defendants in several installments and with softer interest rates and monetary restatement.
Such new interpretation is a result of the increasing quantity of termination agreements during the economic crisis Brazil has been subject to in the last 3 years, reaching around 1/3 of all the recent purchase and sale agreements, which puts several construction and property developers in a delicate financial situation.
For further information, please contact:
Maria Cristina Junqueira