Seller who takes back sold property assumes condominium debts

Camila Vieira Guimarães
Lawyer at Marcos Martins Advogados

The Fourth Panel of the Superior Court of Justice (STJ) has reinforced the understanding that the seller assumes the condominium debts that occurred after the sale of the property, while the property was in the possession of the buyer, if the seller takes possession of the property due to termination of the contract in the event of default by the buyer.

The decision was made in an appeal filed by the Curitiba Popular Housing Company (Cohab), which entered into a purchase and sale contract with a private individual. The contract was terminated and the property was repossessed by Cohab. The condominium filed suit to collect the condominium fees and Cohab claimed to be an illegitimate party to the suit.

Case law has consolidated the understanding that the rule is that the seller cannot be held responsible for condominium debts subsequent to the sale, however, if the seller takes back the property, he also returns to his status as owner, thus being liable for the condominium dues in arrears, even if they precede the acquisition, since such debt would have a propter rem nature – a debt that follows the property. However, the seller’s right to file a recourse action against the former owner is protected.

Marcos Martins Advogados is attentive to the judgment that will soon be handed down by the Superior Court of Justice, and is ready to assist you by applying the most contemporary case law understandings and Civil Law institutes.

Questions? Talk to our lawyers and get advice.

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