BRAZIL Trends and Developments Contributed by: Ivandro Ristum Trevelim, Rafael Jordão Bussière and Fabio Perrone Campos Mello, Campos Mello Advogados
As a result, new residential and commercial developments are being directed toward loca - tions further from traditional urban centres. This trend indicates a more decentralised real estate market, promoting balanced growth and reduc - ing concentration in specific regions. Relevant legislative changes and proposals for the real estate market in 2025 Modifications to the Civil Code and Rules on Estate Succession Proposed reforms to the Civil Code have been put forward. If approved they will potentially change the rules related to estate succession. The proposed changes seek to allow spouses to be excluded from inheriting their partner’s estate in certain cases, modifying the property regime and the way real estate assets are inherited. These changes may have a direct impact on the real estate market, particularly in property trans - fers across generations, as a significant number of real estate transactions in Brazil occur through inheritance. The modification could also pose challenges for professionals in the sector, requir - ing adjustments in succession and tax planning strategies. I Key changes and their effects The end of spousal mandatory inheritance rights means the spouse will only have inheritance rights if there are no descendants or ascend - ants, reverting to the rule in effect before 2002. In a total separation of assets regime, the spouse may inherit nothing. In community property regimes, the right to marital division ( meação ) remains. Children and spouses who have neglected or abandoned the deceased may be excluded from inheritance.
Up to one-quarter of the estate may be allocated to descendants or ascendants in vulnerable situ - ations. II Impacts on the real estate market The changes will provide greater flexibility in estate planning. Property owners will have more freedom to define heirs, driving interest in wills and planned succession. The new legislation is expected to lead to great - er demand for legal guidance to prevent family conflicts. In terms of potential legal disputes and delays in probate proceedings, the subjectivity in asset division may generate more lawsuits and delay the sale of inherited properties. Widowed individuals without inheritance rights may need to purchase properties, stimulating the market while the elimination of automatic division between spouses may influence the sale of properties under probate. Changes in commercial lease contracts and use of business properties The rules regarding the leasing of commercial properties have also undergone changes. New commercial lease contracts will provide greater flexibility to accommodate market changes, such as the increase in remote work and the migra - tion to smaller spaces. The regulations regard - ing rent negotiations and the introduction of new payment methods, such as rent based on the tenant company’s revenue are also an increas - ing trend. This has given commercial property owners more options to ensure the occupation of their spaces, while tenants benefit from more accessible conditions for their businesses.
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