In a recent decision (03/03/2024), the 2nd Civil Law Chamber of the TJSC (Santa Catarina Court of Justice) declared that the Price Table cannot be applied to real estate purchase and sale contracts financed directly by the real estate company.
In the case under review, the contract signed between the buyer and the real estate company did not provide for the charging of compound interest. However, in the court-ordered expert examination requested by the buyer during the contract review lawsuit, the expert pointed out that compound interest was being charged by the real estate company through the use of the Price Table.
Consequently, the presiding judge recognized the illegality of using the Price Table and ordered the recalculation of the property financing using the simple interest calculation method – MAJS.
The real estate company appealed the decision. During the appeal hearing, the Appellate Judges of the TJSC held that compound interest may only be charged by financial institutions, as well as in rural, commercial, and industrial credit notes, but cannot be charged by a real estate company in property purchase and sale contracts.
In addition to recognizing the illegality of the compound interest charges, the court ordered the refund of the amounts unduly charged, with monetary adjustment. (Source: TJSC – Lawsuit No. 5001263-81.2022.8.24.0061).