Brazilian Rental Property Agreement Termination

Signing a Brazilian Rental Property contract usually imposes a minimum 30-month commitment. It involves the tenant, landlord, and real estate agent. If everything goes well, perfect! But unforeseen events can always happen. In this context, it may be necessary to terminate the contract in advance. And with that in mind, I have written this guide. The termination of the rental deserves special attention because it involves various bureaucratic and legal procedures. Learn what you need to know.

Brazil Rental Property

Fine for breach of contract

Most contracts establish a fine if the contract is terminated unilaterally by either party. The remaining time is the basis to calculate the fine. If the contract is valid indefinitely, both can break it at any time, without having to pay fine.

Grounds for termination of the Brazilian Rental Property

The owner of the property can only terminate the contract in 2 specific situations: in case he needs the property for his own use and has no other property of the type or if the tenant commits some type of illegal act or that it violates the rules of the contract – Not allowed. Other than that, you should wait for the finalization of the contract to request the property back. The tenant, on the other hand, does not have to present specific reasons to leave the property, as long as he pays the fine established in contract. On the other hand, you are exempt from honoring this payment if the termination occurs due to change of employment.

Deadlines for termination

The landlord and the tenant must observe the deadlines for termination of the rental contract. After the landlord requests the property, the default time is of 30 days for the tenant to organize and find a new property. When there are legal disputes for eviction of the tenant, a period of 6 months is usually granted, provided that there is a legal representation at the right time. Already if the closing of the contract is requested by who leases the property, there is a notice of 30 days to allow the owner to plan financially and to find a new tenant for the property as soon as possible.

Vacating the Property

Regardless of who decided to terminate the lease, vacating the property must follow certain criteria. It is necessary that the tenant carry out an exit survey, in order to ensure that the property is in the same conditions of the beginning of the contract. It is also important that the owner or real estate agent provides proof of receipt of the keys so that there is no charge for the lease.

But beware: consult with a Brazilian lawyer in case there’s a need for a premature termination of the Brazilian Rental Property contract. To have peace of mind and avoid future problems, it is wise to hire a Brazilian lawyer to assist in the transaction.