BRAZIL Law and Practice Contributed by: Mariana Cobra, Janaína Vargas, Mayara Zanini and Marcela Freire, Mattos Filho
6.22 Termination by a Third Party A lease may be terminated by public authorities in the following events: • expropriation, which may be due to public need or utility, or social interest, through fair and prior compensation in cash; • imminent public danger; or • to carry out urgent repairs that cannot be car - ried out while the tenant remains in the real property (or if the tenant refuses to agree with the repairs). The period of the judicial procedure may vary but is usually a timing consuming process. The public authorities must pay the compensa - tion to the property owner. If the real property is leased, the tenant may also claim compensation in separate proceedings. 6.23 Remedies/Damages for Breach In a typical lease agreement, the penalty in which the tenant incurs in the case of a breach of the agreement is usually equal to three monthly rents, reduced proportionally to the period of the lease already elapsed. In atypical leases it is legally possible charging the remaining rent. Additionally, if the landlord identifies damage to the property, it is possible to claim indem - nification/losses and damages and to enforce the security provided by the tenant, if applica - ble. For a discussion on the forms of security, please refer to 6.16 Forms of Security to Pro- tect Against a Failure of the Tenant to Meet Its Obligations .
Registration Office allows the tenant to maintain all terms and conditions of such lease agree - ment in full force and effect in the event of the sale of the leased premises during its term. Once registered, the registration fees will be applicable, and the tenant is the one the usually pays them; please refer to 2.10 Taxes Applica- ble to a Transaction . 6.21 Forced Eviction The tenant may be evicted in the event of a legal or contractual breach, especially failure to pay rent and other charges. In these cases, to recov - er its property, the remedy of the landlord is to commence judicial eviction proceedings, aiming to have the real property vacated. According to the National Council of Justice, the estimated average period is two years and one month until the first court decision, and ten months in the case of appeal. Considering that 97.2% of new procedures were filed in electronic format in 2021, it is estimated that this period will become increasingly shorter. The real property must be vacated within 30 days of the eviction order issued by the judge, except if (i) the interval between the service of process and the judgment is longer than four months; or (ii) the eviction arises from failure to comply with the lease agreement, lack of payment or other circumstances set out in the Urban Lease Law and provided that a deposit is provided in the amount equivalent to three months’ rent, in which case the injunction will be granted by the judge to vacate of the property within 15 days. During the COVID-19 pandemic, a law was enacted to suspend eviction proceedings, which is no longer in force.
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