The Second Section of the Superior Court of Justice (STJ, Brazil’s highest appellate court for non-constitutional matters) has ordered a nationwide suspension of all individual and collective lawsuits challenging rules on short-term property rentals in residential condominiums. The measure directly impacts operations mediated by digital hosting platforms.
The Core Legal Dispute
The main debate before the Court aims to establish a clear standard for condominium bylaws. The central question is whether a standard clause establishing a building’s “residential purpose” is sufficient to prohibit short-term rentals of individual units, or whether the condominium bylaws must expressly forbid the practice.
To settle the matter, the STJ admitted Special Appeals (REsp) 2,272,537 and 2,272,536, with Justice Raul Araújo as rapporteur, under the repetitive appeals system (a mechanism for resolving widespread identical legal questions). The dispute was registered as Topic 1,443.
The repetitive appeals system, governed by Articles 1,036 et seq. of the Brazilian Code of Civil Procedure (CPC), allows the court to select representative cases with identical issues for sampling. Under Article 927, III, of the CPC, the legal holding established in this judgment will be binding on lower-court judges and appellate courts. According to the STJ, the Precedent, Case Law, and Class Action Management Commission (Cogepac) had already identified 50 single-judge and panel decisions on the subject within the Court, underscoring the need for harmonization.
STJ Precedents on the Topic
The issue is not new to the Court. The reporting Justice highlighted that panels specialized in private law have previously addressed the scenario. In a prior ruling (REsp 2,121,055), the Second Section—which comprises the Third and Fourth Panels—consolidated the view that an express prohibition in the condominium bylaws is not required to prevent the practice.
On that occasion, the panel ruled that the mere provision of an exclusively residential purpose for the units makes rentals via digital platforms incompatible with the condominium’s intended use. For short- or ultra-short-term rentals to be permitted in such cases, the STJ established that an assembly resolution approved by a qualified quorum of two-thirds of unit owners is required.
Practical Impact and Legal Certainty
The nationwide stay of proceedings prevents local courts from issuing conflicting rulings on the same topic while the STJ finalizes its ruling. According to Justice Raul Araújo, establishing a binding precedent ensures legal certainty and consistency in resolving similar disputes, while streamlining the judicial system.
Until Topic 1,443 is decided and the binding precedent is established, investors, property owners, and condominium boards must await the superior court’s final ruling, which will set the definitive rules for the commercial use of residential units through short-term rentals.
This content is for informational purposes only and does not constitute legal advice. For guidance on specific matters, consult a qualified lawyer.
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