For those who are suffering losses on delivery delays of property, an important legal precedent of t

Discussion in 'Brazil Property' started by MarciaLima, Jan 18, 2013.

  1. MarciaLima

    MarciaLima Banned

    A recent judgment made at the third panel of the Brazilian Superior Court of Justice (STJ) (under judges Sidnei Beneti, Paulo de Tarso Sanseverino and Ricardo Villas Bôas Cueva ) confirmed that the buyer of an off-plan housing unit can subsequently demand compensation from the construction company as a result of delay in the delivery. This charge can be made in line with profit losses incurred by the company.

    The case was made in reference to a couple that purchased a property from the Gafisa real estate development company with a view of receiving rental income. Due to the delivery delay, Gafisa was ordered to pay a monthly compensation figure of 1% of the value of the property in addition compensating the rent that would have been achieved.

    According to the STJ judges, there exist two types of punishment clauses in real estate development contracts: complete non-compliance and partial non-compliance. The former contractually pre-establishes losses and damages as a result of the failure to deliver on time. The latter does not compensate or substitute the default, but only punishes the delay in fulfilling the obligation. According to Sidnei Beneti: “a party who practices an act injurious to the interests or rights of others becomes obligated to compensate accordingly.”

    Source:Legal Precedent on Delivery Delays by Brazilian Real Estate Companies « Brazil Real Estate & Land Investment Guide Blog
     
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