BRAZIL Law and Practice Contributed by: Mariana Cobra, Janaína Vargas, Mayara Zanini and Marcela Freire, Mattos Filho
be replaced with CBS (Contribution on Goods and Services). 6.8 Costs Payable by a Tenant at the Start of a Lease In typical urban lease agreements, the landlord is not authorised to charge any amounts other than rent at the start of a lease. 6.9 Payment of Maintenance and Repair Under the Real Estate Development Law areas that are not for private use are registered as common use areas. If the leased real estate is part of a condomin - ium, as per the Real Estate Development Law, the tenant will pay the common charges (ie, ordi - nary expenses of the common use areas). The landlord is responsible for the extraordinary property maintenance expenses in relation to the common areas, which are those that do not refer to routine building maintenance expenses. 6.10 Payment of Utilities and Telecommunications Lease agreements typically regulate how utilities and telecommunications are to be paid. Some lease agreements include utilities and telecom - munication services as part of the overall rent. In this case, the landlord covers these costs direct - ly. Alternatively, tenants may be responsible for arranging and paying their utilities and telecom - munication services directly to the respective service providers. Each tenant has individual accounts (and meters) and is billed separately for their consumption. 6.11 Insurance Issues When landlords are responsible for obtaining insurance coverage for the property, the cost of insurance is often included in the operating
expenses of the property, which are passed on to tenants through common area maintenance charges or similar mechanisms. Alternatively, the lease agreement may require tenants to obtain their own insurance coverage for their leased space. This can include renter’s insurance or business insurance to protect against liability and property damage. The events causing damage that are usually cov - ered by the insurance policy typically depend on the specific terms of each insurance policy. Common events covered by property insurance include fire, theft, vandalism, natural disasters and water damage. In relation to tenants who file legal actions to discuss matters related to lease agreements, the firm was able to verify the filing of actions aimed at: • reducing the rental value, in which the judici - ary has decided to reduce the monthly rent by up to 50%; • replacement for a less onerous guarantee for the lessee; and even • the suspension of the term of the lease while the COVID-19 pandemic was taking place. 6.12 Restrictions on the Use of Real Estate Restrictions on the use of real estate can be imposed by the landlord on the tenant, or by the Condominium By-laws. These restrictions are typically specified in the lease agreement or in the Condominium By-laws. There are also restrictions imposed by law, such as zoning, non-disturbance, environmental, health and safety laws, which the tenant must obey.
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