Brazil suspends restrictions on foreigners buying real estate
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Loading... - Brian Clarke
- 01 Jun 2023
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In the ruling, Mendonça comprehended that the ongoing lawsuits within the Judiciary system should await the verdict of two actions currently under examination by the Court.
The matter was presented for trial in the Supreme Court by agricultural business organizations. As per the allegations filed in 2015, Law 5,709 of 1971 imposes restrictions on domestic companies with foreign investments by limiting their ability to acquire land within the country.
The Brazilian Bar Association (OAB) requested the suspension of the proceedings, which was also acknowledged by the minister for their involvement in the process. The association argued that the issue's legal certainty must be preserved.
"The OAB recognizes the necessity of suspending all lawsuits and legal transactions that pertain to the application of the aforementioned legal provision until the final judgment of ACO 2463 and ADPF 342, in order to maintain legal certainty regarding the matter," they justified.
The Brazilian Rural Society (SRB), which challenges the restrictions outlined in the law, voiced their opposition to the halt in the legal processes in court.
"The request for an injunction is even more unreasonable. Suspending all legal processes and transactions related to the application of the law whose constitutionality is being discussed would cripple investments in sectors that hold such importance for the national economy," argued the society.
