Court voids monthly construction-cost adjustment clause in property contract

The INCC tracks changes in construction costs and can raise the amount a buyer still owes on a home bought before it is built.

In one case, a court found that a R$1,000 payment added after the main payments artificially extended the contract.

Monthly adjustments are allowed only for contracts longer than 36 months; otherwise, they must be annual.

The ruling voided the monthly-adjustment clause and ordered the developer to repay twice the difference between monthly and annual adjustments.