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Conflicts involving Commercial Lease: Rent Adjustment and Contract Renewal



Commercial leasing is a complex legal relationship involving the owner of the property and the lessee, usually a businessman, aiming to use the space for commercial purposes. However, conflicts related to rent adjustment and contract renewal may eventually arise, topics that we will explore in this article. It is important to know the rights and duties of both parties in order to seek appropriate solutions and avoid unnecessary disputes.

1. Rent adjustment: legal fundamentals and market practices Rent adjustment is a sore point in lease negotiations commercial. In Brazil, the Tenancy Law (Law No. 8,245/91) establishes that the readjustment can be made by means of an agreement between the parties or based on monetary correction indices, such as the General Market Price Index (IGP-M ), the National Construction Cost Index (INCC) or the Extended National Consumer Price Index (IPCA).

It is important to emphasize that, although the legislation allows free negotiation between the parties, market practices and supply and demand significantly influence the readjustment of commercial rent. In some cases, contracts may provide for specific clauses regarding readjustment, limiting correction rates.

2. Conflicts Regarding Rent Adjustments Disagreements regarding rent adjustments are common in commercial leasing. Often, the difference between the value proposed by the lessor and that accepted by the lessee generates impasses and debates.

In the same way, it is important to question the correct application of the correction index and verify if the increase is in line with the values practiced in the market or if it is excessive. In addition, it may be necessary to analyze whether the readjustment is allowed by law or if the contract has a specific clause in this regard.

In these cases, it is recommended to seek mediation between the parties, in order to try to reach an agreement that is fair and balanced. Dialogue and mutual understanding are key to resolving these conflicts.

3. Contract renewal: rights and duties Contract renewal is another crucial point in the commercial leasing relationship. According to the Tenancy Law, the lessee has the right to renew the contract, as long as he meets the legal requirements and informs the lessor of his intention within 12 months before the end of the contract.

However, the lessor also has rights and may oppose the renewal, provided that it legitimately justifies it, such as the need for own use of the property or for construction or renovation that implies a change of commercial activity.

Conflicts can arise when there is disagreement between the parties regarding the terms of the renewal, such as the new rent amount, duration of the new contract and any improvements that may be required.

4. Friendly negotiation and the figure of the mediator To avoid prolonged disputes, it is recommended that the parties seek friendly negotiation and the figure of the mediator to help resolve conflicts. Mediation is an effective alternative, in which an impartial and skilled mediator assists the parties in reaching a consensus.

Mediation allows both landlord and tenant to express their interests and needs, with the aim of finding solutions that are beneficial to both parties. This collaborative approach can avoid costly litigation and preserve the relationship between the parties involved.

5. Preventive Measures and Precautions When Signing a Commercial Lease Agreement Prevention is always better than cure. Therefore, it is essential that, when signing a commercial lease agreement, both the lessor and the lessee are aware of the contractual details and clauses.

It is indicated that the parties are careful during the elaboration of the contract, including aspects such as rent adjustment, renewal, rights and obligations, improvements, responsibility for repairs, among others. It is advisable to have the advice of a professional specializing in real estate law to ensure that all relevant issues are properly addressed.

Conclusion:

Conflicts involving rent readjustment and contract renewal in commercial leases are common, but are also subject to amicable resolution. Dialogue between the parties, the search for an impartial mediator and compliance with legal norms are fundamental for resolving these differences.

Both landlord and tenant should seek legal knowledge and adequate advice before signing any contract, in order to avoid future problems and ensure a more harmonious lease relationship. With preventive measures and a mutual understanding, it is possible to build a healthy and fair tenant relationship for both parties involved.

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