Real estate litigation refers to the representation of judicial or extrajudicial disputes related to the dynamic and complex real estate market, where the resolution of conflicts involving the rights and duties of property owners, tenants, buyers, and other interested parties is sought. The main types of litigation occurrences include:

– Property disputes: referring to conflicts over the ownership and possession of properties. Some examples are adverse possession, expropriation, and land division and demarcation.

– Purchase and sale agreements: related to issues such as non-compliance, hidden defects, and other matters related to the commitments.

Non-compliance with contracts: i.e., failure to pay the agreed installments in purchase and sale commitments (CVC). Sellers may seek the termination of the CVC and repossession of the property.

Hidden defects: defects that were not detected at the time of purchase, where the buyer may request repair or a price reduction, as provided in Articles 441 to 446 of the Civil Code.

– Leases: controversies over rental payments, which can lead to:

Eviction for non-payment: when the tenant fails to pay the due rent, the landlord may seek repossession of the property, as provided in the Tenancy Law (Lei do Inquilinato), No. 8.245/1991.

Rent review: an action aimed at adjusting the rent to reflect the reality of the market, achieving the economic-financial balance of the contract.

Renewal of leases: in commercial leases, the tenant may seek the renewal of the contract under the same conditions as before, provided that they meet the requirements of the Tenancy Law.

– Condominium disputes: conflicts in residential or commercial condominiums include issues related to condominium fees, use of common areas, and condominium assembly meetings:

Collection of condominium fees: default on contributions by condominium owners may lead to a collection action or even property seizure.

Use of common areas: disputes over the use and maintenance of common areas in the condominium, including parking, swimming pools, and other shared spaces.

Decisions in assemblies: conflicts over decisions made in condominium assembly meetings, especially those involving changes to the internal regulations or building renovations.

– Land regularization: these are disputes related to the regularization of properties that are not properly registered or have pending documentation, especially in peripheral urban and rural areas. Land regularization is crucial in both urban and rural areas and is governed by Law No. 13.465/2017, which establishes mechanisms for formalizing possession and ownership, aiming to reduce potential conflicts.

Understanding the stages of Real Estate Litigation

Real estate litigation, due to its complexity and the variety of situations it encompasses, requires a structured approach for the effective resolution of disputes. The process involves several critical stages, each playing a key role in seeking a fair and equitable solution for the parties involved.

Here are the main stages of a real estate litigation process, from the initial identification of the issue to the final execution of the judgment, ensuring the importance of each phase to guarantee legal compliance and conflict resolution.

• Identification of the problem: Recognition of the dispute and preliminary analysis.
• Attempt at extrajudicial resolution: Mediation, conciliation, or direct negotiation.
• Filing of the lawsuit: Drafting and submitting the initial petition.
• Conciliation or mediation hearing: Attempt to reach an agreement between the parties.
• Procedural instruction: Evidence-gathering phase, including witness statements and documents.
• Judgment: The judge’s decision on the merits of the case.
• Appeals: Possible appeals filed by dissatisfied parties.
• Execution of the judgment: Enforcement of the judicial decision.

Do you know how to prevent real estate disputes?

Preventing real estate disputes is a crucial aspect of ensuring security and peace of mind in real estate transactions. Anticipating and identifying potential issues can avoid emotional and financial strain, while also ensuring that everyone involved is aware of their rights and responsibilities. Here are the key strategies for this scenario:

• Due Diligence: A detailed verification of the legal status of the property and the parties involved before the transaction.
• Well-drafted contracts: Clear and precise drafting of contracts, including specific clauses for conflict resolution.
• Mediation and conciliation: Use of alternative dispute resolution methods from the very beginning of the conflict.

The primary strategy, however, is specialized legal assistance, which ensures that all legal aspects are considered and the rights of the parties involved are protected. With the support of experienced professionals, it is possible to navigate the complexities of real estate litigation effectively and efficiently, increasing the chances of a favorable resolution.

The BNS team consists of specialists in Real Estate Law who are ready to offer comprehensive support at every stage of the process, from conflict prevention to dispute resolution, ensuring peace of mind and legal security for clients.

Click here to learn more about the main disputes and legislative changes in Brazil.