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Supreme Federal Court finalizes judgment to authorizes the seizure of family assets of a guarantor in commercial rental

Supreme Federal Court finalizes judgment to authorizes the seizure of family assets of a guarantor in commercial rental

3/30/2022

The Supreme Federal Court has, in a 7 to 4 vote, set the understanding that it is constitutional the seizure of a family asset that belongs to the guarantor of a commercial or residential rental contract. With Minister Alexandre de Moraes as the lead judge, the lawsuit was concluded at the beginning of this month.

The issue is the wording of law No. 8.009/1990 as regarding the exceptions to the rule that exempts family assets of seizure stated in article 3 paragraph VII according to which it is allowable to seize assets from a guarantor in a rental contract and this law makes no distinction between commercial and residential rentals.

The prevailing opinion was that the seizure of a guarantor’s real estate, even in the case of a commercial rental, does not violate the constitutional right to have a home, as the guarantor freely assumes that liability. Moreover, Minister Alexandre de Moraes stated that restricting the seizure would go against the principles of good faith and freedom to contract, and benefit the entrepreneurship.

Author: Ricardo Castro Ramos

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