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Arrendamento Rural por Estrangeiros – Recentes Orientações

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4/24/2015 9:00 PM Demarest News

Rural Lease by Foreigner - Recent Instructions
 
 
Following the guidance drawn up by the measures and restrictive guidelines regarding the acquisition of rural real estate and the execution of rural lease agreements by foreigners, implemented since the publication of the Opinion CGU/AGU nº 1/2008, the Judicial Conduct Investigation Office (CNJ) issued on April 17th, 2015 the Provision n. 43/2015, which states that rural lease agreements shall be executed by public deeds when the interested party is: (i) an individual foreigner resident in Brazil; (ii) a foreigner legal entity authorized to operate in Brazil; and (iii) a Brazilian legal entity that is, on any account, composed by foreign persons, natural or legal ones, who hold the majority of its capital stock.
 
According to the Provision n. 43/2015, the party interested in leasing a rural property, which fulfills one of these conditions, shall file an authorization request in this regard before the National Institute of Colonization and Agrarian Reform (INCRA), and in case of a successful pronouncement from such agency, shall comply within the following terms:  
 
(i)  30 (thirty) days as of the date of the successful pronouncement by INCRA to execute the respective public deed; and
(ii) 15 (fifteen) days as of the execution date hereof to record such public deed with the relevant Real Estate Registry Office.
 
Although the terms indicated above are enforceable to the interested parties, the Provision n. 43/2015 does not state any term for INCRA's pronouncement regarding the files submitted for its appreciation.
 
It is also set forth by the Provision n. 432015 that the execution of public deeds for the lease of rural properties located in areas considered as essential areas for national security, will also depend on the prior consent of the National Security Council (CSN).
 
The main purpose of this Provision n. 432015 is the monitoring, through the Notary Offices and the Real Estate Registry Offices, of the execution of rural lease agreements by Brazilian legal entities with the majority of its capital stock held by foreigners or Brazilian legal entities controlled by foreigners.
 
No reference is made to the rights granted for rural lessees by the Law n. 4504/64 (Estatuto da Terra), such as the right of first refusal assisted on the renewal of the lease agreements and the possibility of automatic renewal of their terms.
 
Demarest Advogados
Real Estate Practice 
 
​Adriana Khalil Daiuto adaiuto@demarest.com.br
+1  212  371-9191  
+55 11 3356-2073​
Marina Maccabelli​ mmaccabelli@demarest.com.br ​+55 11 3356-2073
Chrystiane Domingos​ cdomingos@demarest.com.br ​+55 11 3356-1914

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