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Writer's pictureEdson Ferreira

The Importance of the Inspection Report in Real Estate Lease Agreements


This article examines the importance of the inspection report in real estate lease agreements, highlighting its role in preventing conflicts between landlords and tenants. It analyzes the function of the report in documenting the property's condition at the beginning and end of the lease, as well as its legal implications in disputes over damages and deposit refunds. The study covers applicable legislation, relevant case law, and provides practical guidance for drafting a comprehensive and legally valid inspection report.


The inspection report is an essential document in real estate lease agreements, serving as a detailed record of the property's condition when handed over to the tenant and when returned to the landlord. Its primary purpose is to prevent misunderstandings and disputes regarding the property's state of repair, fostering a safer and more transparent contractual relationship. This article explores the legal importance of the inspection report, focusing on its functions, relevant legislation, and best practices for its drafting.


Tenancy Law (Law N. 8.245/1991)

The Tenancy Law, which governs the leasing of urban properties in Brazil, does not expressly require the creation of an inspection report but does establish the tenant's responsibility to return the property in the same condition in which it was received, except for normal wear and tear. The absence of an inspection report can make it difficult to prove the property's condition, potentially leading to conflicts between the parties, making this document indispensable for fulfilling contractual obligations.


Civil Code of 2002

The Civil Code, in Article 575, states that the tenant must return the property at the end of the lease in the condition in which it was received, allowing for wear and tear resulting from regular use. This reinforces the importance of the inspection report as documentary evidence of the property's condition. The absence of such a document can lead to complicated legal disputes, where one party's word may prevail in the absence of objective evidence.


Functions of the Inspection Report


Initial Condition Record

The initial inspection report documents the property's condition in detail at the time it is handed over to the tenant. It should include precise descriptions of all rooms, electrical and plumbing systems, paintwork, finishes, furnishings (if applicable), and any pre-existing defects or wear. This record is crucial to ensure that the tenant is not held responsible for damages that existed before the lease began.


Comparison for Property Return

At the end of the lease, a final inspection is conducted, where the current condition of the property is compared to that recorded in the initial report. This comparison helps identify any damage or deterioration beyond normal wear and tear and determines whether the tenant should be responsible for repairs or compensation. If the property is returned in accordance with the initial report, the tenant should be released from any further obligations.


Dispute Prevention

The inspection report serves as an important preventative tool, avoiding disagreements about the property's condition from escalating into legal disputes. It provides an objective basis for resolving conflicts, facilitating the proof of facts in case of a dispute. Without the report, issues regarding the property's condition can become subjective and difficult to resolve.


Drafting and Legal Validity of the Inspection Report


Detail and Clarity

An inspection report should be detailed and clear, thoroughly describing each part of the property and the conditions observed. Dated and signed photographs are essential elements that complement the descriptions and strengthen the report's validity as documentary evidence. Lack of precision or omission of important details can undermine the report's effectiveness in future disputes.


Signatures of the Parties

For the inspection report to have legal validity, it must be signed by both parties—landlord and tenant. The tenant's signature confirms their agreement with the conditions described in the document and that they received the property as recorded. If the report is contested in the future, the signature serves as proof of mutual acceptance of the content.


Professional Involvement

In cases where the property has complex technical features or when there is distrust between the parties, it may be advisable for the inspection report to be carried out or overseen by a qualified professional, such as an engineer or architect. This expert can provide a technical assessment of the property's condition, adding greater credibility and accuracy to the document.


Case Law and Court Positions


Recognition of the Report’s Importance

Brazilian case law recognizes the importance of the inspection report as evidence in disputes over the return of leased properties. The Superior Court of Justice (STJ) has ruled in several cases on the need for documentary evidence to determine liability for property damages. In disputes where there is no signed inspection report, courts tend to rule in favor of the party that presents the best evidence of the property's condition.


Conclusion


The inspection report is an essential element in real estate lease agreements, providing legal security for both landlords and tenants. It objectively documents the property's condition, preventing conflicts and facilitating dispute resolution. Proper drafting and signing of the report, along with thorough photographic documentation, are key practices to ensure that the interests of both parties are respected and that the lease agreement is fulfilled as agreed. Given the increasing judicialization of lease relationships, preparing a detailed and accurate inspection report is an indispensable measure to avoid litigation and protect the rights involved.

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