The SELIC Rate in Real Estate Purchase and Sale Contracts and Consumer Rights in Brazil

Introduction:

Consumer rights are a branch of law aimed at protecting the interests of consumers in commercial relationships. One of the relevant aspects in this context is the monetary correction and interest rates applicable to real estate purchase and sale contracts in Brazil. In this post, we will discuss the possibility of using the SELIC rate as a monetary correction index in these contracts and the jurisprudence of the Superior Court of Justice (STJ) on the matter.

The SELIC Rate and Monetary Correction in Brazil:

The SELIC rate (Sistema Especial de Liquidação e Custódia) is a Brazilian monetary correction index that also includes interest rates. The rate is variable and established by the Monetary Policy Committee (Copom), taking into account various economic variables.

According to the jurisprudence of the Brazilian STJ, it is possible to use the SELIC rate as a monetary correction index for the installments adjusted in a real estate purchase and sale contract, as long as it is agreed upon by the parties. However, it is important to note that the SELIC rate encompasses both interest and monetary correction, and therefore, cannot be combined with other indices expressing such consequences.

Remuneratory and Default Interest:

Interest can be divided into two categories: remuneratory and default interest. Remuneratory interest serves to compensate the creditor for the deprivation of their capital and, as a rule, are conventional. Default interest, on the other hand, aims to indemnify the creditor for the delay in debt payment and can be determined by law (legal) or by agreement between the parties (conventional).

The jurisprudence of the Brazilian STJ recognizes the legality of stipulating compensatory interest in real estate purchase and sale contracts, as long as the limits provided for in the governing legislation are respected. However, if the SELIC rate is agreed upon as the monetary correction index for contractual installments, it will not be possible to combine it with remuneratory interest, since interest is already included in this index. On the other hand, the stipulation of default interest is allowed, as it has a distinct purpose from remuneratory interest.

Conclusion:

In summary, the use of the SELIC rate as a monetary correction index in real estate purchase and sale contracts is allowed in Brazil, as long as agreed upon by the parties and not combined with remuneratory interest. The jurisprudence of the Brazilian STJ emphasizes the importance of respecting legal limits and good faith in contractual negotiations, thus ensuring consumer rights in commercial relationships involving real estate acquisition.