Ivana Bomfim and Juliana Ribeiro   In the current economic environment, the acquisition of real estate of companies under court reorganization may be a synonym of better prices. The sale of assets is provided for in the Judicial Reorganization Act as one of the mechanisms to restore economic and financial health for the company under court reorganization. However, the fact that the sale is carried out in the context of the judicial reorganization does not guarantee its legal certainty.

Ivana Bomfim and Juliana Ribeiro

In the current economic environment, the acquisition of real estate of companies under court reorganization may be a synonym of better prices. The sale of assets is provided for in the Judicial Reorganization Act as one of the mechanisms to restore economic and financial health for the company under court reorganization. However, the fact that the sale is carried out in the context of the judicial reorganization does not guarantee its legal certainty.

It is essential that the sale be provided for in the reorganization plan and be approved by the creditors. Moreover, compliance with the requirements for approval and homologation of the plan and inclusion of the property owner in the proceeding (for cases of reorganization of economic groups) should be confirmed, at the risk of the sale being deemed ineffective. In addition to these precautions, conducting an audit to verify the legal status of the property and any existing debt, especially tax and labor related, remains necessary.

The sale can be performed directly by the company under judicial reorganization or through an extrajudicial auction. In direct sales, the risk assessment shall be similar to that of other real estate transactions. At the auction, the buyer will have a more comfortable position because it is an original acquisition. Provided that the process is regular and that there is no formal defect, debts and liens relating to the property, the seller and any predecessors will not affect it. Attentive investors may benefit. However, common caution and diligence in real estate transactions cannot be forgotten, but rather adapted to identify any risks that may effectively result from this type of transaction.