Real estate
The opportunity for regularization of buildings granted by the São Paulo City Government, through Law No. 17,202/19, should benefit more than 750,000 irregular properties in the state capital. The Amnesty Law, as it is popularly known, meets the provisions of the Strategic Master Plan of the Municipality of São Paulo and establishes the subordination of regularization of buildings, when necessary, to the execution of works.
Discussions on the issue of regulating the process of acquisition of rural real estate by foreigners should gain momentum following the presentation to the Federal Senate of Bill No. 2,963/19, dating from the end of May of this year. The text of the bill addresses various problems that the market faces with current laws and regulations, which depends on an extremely bureaucratic, uneven procedure and no operational resources for its implementation. All of this makes the acquisition process time consuming and affects the legal security of investment projects.
Federal Law No. 13,838/2019, published on June 5, sought to facilitate the geo-referencing process of rural properties. With the addition of a new paragraph 13 into article 176 of the Public Registers Law, the consent of abutting landowners in the geo-referencing process required in cases of subdivision, splitting, consolidation, and transfer of rural properties was dispensed with. Consent will be replaced by a declaration by the applicant that he respected the limits and boundaries of his property.
It is enough to observe some of the most pulsating cities today to see that entrepreneurial creativity seems to be inversely proportional to available urban space. Proof of this are the various projects around the world with new ways of making better use of the rooftops of buildings or raised slabs.
Signed on March 23, 2016, Law No. 16,402/16 governs the subdivision, use, and occupation of land in the municipality of São Paulo (Zoning Law). In relation to the previous law, it has brought in a series of changes, such as the establishment of maximum size limits for lots, reduction in the requirement of car parking spaces, minimum number of bicycle parking spaces, widening of sidewalks, and expansion of special environmental protection areas.
CVM Instruction No. 602, published on August 27, sets forth rules regarding public offerings of hotel collective investment contracts (CICs), the so-called condo-hotels. It repealed CVM Resolution No. 734/2015 (as amended by CVM Resolution No. 752/2016), which until then regulated the matter.
On October 6, a plenary session of the Chamber of Deputies approved the text of Law 10,728/2018, replacing the text proposed by means of Law No. 1,220/2015, which regulates the termination of contracts for the acquisition of real estate.
Brazil already has rules to regulate the legal regime of multi-ownership and registration of real properties. It is Law No. 13,777/2018, which amended and introduced new provisions in the Civil Code and in the Public Registers Law. Published in the Official Gazette on Friday, the 21st, it originated in Bill No. 10.287/2018, passed the previous day, and enters into force on February 4, 2019 (45 days after its publication).
The Court of Appeals of São Paulo decided in favor of the sale of rural property mortgaged in favor of a Brazilian financial institution equated to a foreign entity, despite the current restrictions on the acquisition and leasing of rural properties by Brazilian companies equated to foreigner entities, as they have a majority of their capital stock and/or control held by foreigners. The appellate decision was published on July 17, by the 23rd Chamber of Private Law of the TJ/SP, in the context of interlocutory appeal No. 2024029-90.2017.8.26.0000, of the District of São Paulo.
In a decision on September 19, the São Paulo Court of Appeals (TJ-SP) maintained the repeal of an injunction that had suspended the right of filing in the city. The licensing processes of projects registered with the Municipal Government (PM-SP) under the old law continue their normal proceeding.
Municipal Complementary Law (LC) No. 192/2018, published on July 19, establishes special conditions for the licensing of buildings (future improvements – named “mais valerá”) and additions in buildings (improvements – named “mais-valia”) in order to stimulate the regularization of buildings in the city of Rio de Janeiro and increase tax collection of the municipality. In 2015, when another improvements law was enacted, legalization of additions yielded R$ 1 billion for municipal public coffers.
National Monetary Council (CMN) Resolution No. 4,661/2018 established new rules and restrictions on investment in real estate by pension funds. Published on May 29, the regulation revoked Resolution No. 3.972/2009, prohibited the direct acquisition of real estate by closed-end private pension entities (EFPC), and forced them to sell properties owned directly by them within a period of up to 12 years (or May 28, 2030).
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