TJSP lowers fines regarding termination of land plots acquisition agreement

As a result of the financial crisis, people who bought land and had to undo their business with land developers or developers have been able to rule out high fines in the São Paulo Court of Justice (TJ-SP). The penalty established by the Distractions Law (Law No. 13,786, 2018) has been considered abusive in the São Paulo Court.

A review carried out by the president of the OAB/SP Allotment Commission and legal adviser to the Association of Allotment Companies (Aelo) Kelly Durazzo analysed more than 30 decisions handed down by the Court of 2020 so far on contracts signed after the entry into force of the law: all have denied the application of the rule.

In the event of termination, the Cancellation Law provides for the return in instalments of what was paid in up to 12 instalments and a fine of up to 10% of the total value of the contract. The court has rejected this application as it understands that these clauses would be abusive and, therefore, null and void based on the Consumer Protection Code (CDC). The decisions kept the obligation to immediately return the amounts paid, with a fine ranging from 10% to 25% only of what has already been paid.

In this sense, there are decisions from the 1st to 10th Chambers of Private Law of the TJSP - competent to judge actions of this type - except for the 9th Chamber, where no judgments were found in this regard, according to the research.