Superior Court of Justice changes prior understanding regarding the review of the rent amount after the implementation of works by tenant
08/06/2020
| On June 4, the Special Court of the Superior Court of Justice (STJ) authorized, in a specific case, the increase of the rent amount due to the valuation of the leased property resulting from improvements made by tenant with the acknowledgement of landlord. Prior jurisprudence of the STJ used to understand that increase of the rent for works implemented by tenant would not be possible during the rent review but only at the time of lease renewal. Federal Law No. 8,245/91 (Lease Law) allows the contracting parties to define, at any time, the rent amount and the rent adjustment conditions. In addition to this, article 19 of the Lease Law states that, if the parties do not reach an agreement with respect to the rent, both landlord and tenant may, three years following the commencement of the lease or three years following the previous agreement between the parties, seek for the review of the rent amounts in Court, in order to adjust the rent to current market price. Although the recent decision of the STJ has not yet been published and is subject to appeal, it changes the previous understanding, creates precedent and can potentially affect lease agreements currently in force. |
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