Improvements (Benfeitorias)

An improvement (benfeitoria) is any work or expense made by someone who possesses or occupies a property belonging to another, with the purpose of preserving, upgrading, or beautifying the asset. The Civil Code (Law 10,406/2002) classifies improvements into three categories, and this classification entirely determines the rights of whoever made them.

• Necessary improvements (Article 96, paragraph 3, Civil Code): prevent the asset from deteriorating or being lost. Examples: repairing a leaking roof, replacing a burst pipe. A possessor in good faith is entitled to compensation and may hold the property until paid.
• Useful improvements (Article 96, paragraph 2, Civil Code): increase or make the use of the asset easier, without being essential. Examples: installing air conditioning, building an extra garage. A possessor in good faith is entitled to compensation and to hold the property; a possessor in bad faith has no right to compensation or to hold the property for useful improvements.
• Cosmetic improvements (Article 96, paragraph 1, Civil Code): made purely for beautification or leisure. Examples: a sauna, a pool, an ornamental garden. A possessor in good faith may remove them if doing so does not damage the property; there is no right to compensation or to hold the property.

In lease agreements, tenants who make improvements without the landlord’s written authorization are not entitled to compensation or to hold the property, even if the work was necessary. A contract clause waiving these rights is valid for useful and cosmetic improvements (Articles 35 and 36 of Law 8,245/1991).

In Florianópolis, where renovations in high-end apartments often involve significant custom finishes, buyers frequently take possession before the deed is executed. Any improvement made should be explicitly authorized in the private instrument.