Countries › Brazil › Guide › 11. Real estate and land › Condominiums and off plan purchases in Brazil: building rules, fees and fines, the incorporation memorial, segregated estates, delays and cancellations

Condominiums and off plan purchases in Brazil: building rules, fees and fines, the incorporation memorial, segregated estates, delays and cancellations

Last verified: 2026-10-27 · Status: Stable

A Brazilian apartment building is a condomínio edilício: each unit is owned outright with an ideal fraction of the land and common areas, governed by a convention registered at the property registry and approved by two thirds. Late condominium fees carry at most a 2 percent fine. Off plan buyers are protected by the Incorporation Law: the developer may sell units only after registering the incorporation memorial, may ring fence the project in a segregated estate, has a 180 day grace period on delivery if agreed, and on a buyer's cancellation may keep at most 25 percent of what was paid (50 percent in a segregated estate project) plus listed charges.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.3346 per US dollar for 27 October 2026. Conversions are for orientation only.

Key facts

Maximum fine on late condominium fees	2 %Civil Code art. 1.336 § 1, as of 2026-10-27 · in force
Quorum to approve or amend a condominium convention or change use	Two thirds Civil Code arts. 1.333 and 1.351, as of 2026-10-27 · in force
Agreed delivery grace period without penalty	180 daysLei nº 4.591/1964 art. 43-A, as of 2026-10-27 · in force
Compensation to a buyer for delay beyond the grace period	1 % of amount paid per monthLei nº 4.591/1964 art. 43-A § 2, as of 2026-10-27 · in force
Maximum developer retention on buyer cancellation (non segregated project)	25 % of amount paidLei nº 4.591/1964 art. 67-A II, as of 2026-10-27 · in force
Maximum penalty on buyer cancellation in a segregated estate project	50 % of amount paidLei nº 4.591/1964 art. 67-A § 5, as of 2026-10-27 · in force

The rule

1. Units and common parts. In a building, units capable of independent use (flats, offices, shops) are exclusive property with an ideal fraction of the land and common parts and may be sold or encumbered freely; parking spaces cannot be sold or rented to outsiders unless the convention allows it. The land, structure, roof and networks are common and cannot be sold separately. The condominium is created by an act registered at the property registry identifying the units, the ideal fractions and the use of the units; the convention must be signed by holders of at least two thirds of the ideal fractions and registered to bind third parties.
Cost to do it: Registry fees for the institution and convention under the state table.Lei nº 10.406 of 10 January 2002 (Civil Code), Arts. 1.331 §§ 1 to 3, 1.332 and 1.333, 2002-01-10 official text · verified 2026-10-27

2. Owner duties, fees and fines. Each owner contributes to expenses in proportion to the ideal fraction unless the convention says otherwise, must not compromise safety, change the facade or use the unit in a way that harms neighbors, and must keep the building's use. Late contributions bear monetary correction, the agreed default interest or the legal rate, and a fine of up to 2 percent. Breaches of the other duties can be fined up to five times the monthly contribution. Changing the convention or the use of the building or a unit needs two thirds of the owners' votes.
Cost to do it: Late fee fine capped at 2 percent.
Example: Unpaid monthly fee of R$2,000: maximum fine R$40 plus interest and correction. / About US$375 fee, US$7 fine.Lei nº 10.406 of 2002, art. 1.336 § 1 as worded by Lei nº 14.905 of 28 June 2024 and art. 1.351 as worded by Lei nº 14.405 of 12 July 2022, Arts. 1.336 I to IV and §§ 1 and 2; art. 1.351, 2024-06-28 official text · verified 2026-10-27 · changed: Lei nº 14.905 of 28 June 2024 reworded art. 1.336 § 1 to refer to the legal interest rate of Civil Code art. 406, in force 60 days after publication.

3. Lot condominiums and timeshare. Land can be split into exclusive lots and common parts under a lot condominium, with the building condominium rules and the incorporation regime applying, and the developer bearing all infrastructure. Timeshare (multipropriedade) is a condominium in which each owner holds a time fraction with exclusive use of the whole property in rotation.
Cost to do it: Separate matrículas per time fraction (Lei nº 6.015 art. 176 § 1 II 6).Lei nº 10.406 of 2002, arts. 1.358-A (Lei nº 13.465 of 2017 and Lei nº 14.382 of 2022) and 1.358-B and 1.358-C (Lei nº 13.777 of 20 December 2018), Arts. 1.358-A §§ 1 to 3; 1.358-B; 1.358-C, 2018-12-20 official text · verified 2026-10-27

4. Incorporation memorial. A developer (incorporador) may sell or encumber the ideal fractions of the future units only after registering at the property registry the incorporation memorial, including title to the land, negative tax and lawsuit certificates on the property, the land sellers and the developer, a 20 year title history, the approved construction project and area calculations.
Cost to do it: Buyers should check the memorial's registration on the matrícula before paying.Lei nº 4.591 of 16 December 1964 (Incorporation Law), art. 32 as worded by Lei nº 14.382 of 27 June 2022, Art. 28 sole paragraph; art. 32 caput and items a to f, 2022-06-27 official text · verified 2026-10-27

5. Segregated estate (patrimônio de afetação). At the developer's option, the land, works and related rights of an incorporation are kept apart from the developer's own assets and answer only for that project's debts; they can secure only credit fully used for that building. Under the tax reform, surplus IBS and CBS credits of the project can be refunded into its segregated account.
Cost to do it: Registry annotation of the segregated estate; separate accounting.Lei nº 4.591 of 1964, art. 31-A added by Lei nº 10.931 of 2 August 2004 and § 3 reworded by Lei nº 14.620 of 13 July 2023, Art. 31-A caput and §§ 1 to 3, 2004-08-02 official text · verified 2026-10-27

6. Delays. A delivery up to 180 calendar days after the contractual date, if clearly and prominently agreed, does not allow the buyer to terminate or claim a penalty. Beyond that, a buyer not at fault may terminate and recover everything paid plus the agreed penalty within 60 days, or, if keeping the contract, is owed 1 percent of the amount paid for each month of delay, pro rata; the two penalties cannot be combined. The developer must send the buyers' committee a progress report every 3 months.
Cost to do it: Delay compensation of 1 percent a month of the amount paid.
Example: Buyer has paid R$300,000 and delivery is 4 months past the grace period: R$12,000 due on delivery. / About US$2,249.Lei nº 4.591 of 1964, art. 43-A added by Lei nº 13.786 of 27 December 2018; art. 43 I as worded by Lei nº 14.382 of 2022, Art. 43 I a; art. 43-A caput and §§ 1 to 3, 2018-12-27 official text · verified 2026-10-27

7. Buyer cancellation. If a contract with the developer is undone by agreement or by the buyer's default, the buyer recovers what was paid, corrected, less the full brokerage commission and a penalty of up to 25 percent of the amount paid; the buyer also bears property taxes, condominium fees and 0.5 percent of the contract value per month for any period of use. In a segregated estate project the refund is due within 30 days after the occupancy permit (habite-se) and the penalty may be up to 50 percent; otherwise the balance is paid in one installment 180 days after the cancellation, or within 30 days if the unit is resold first.
Cost to do it: Up to 25 percent of the amount paid (50 percent with segregated estate), plus brokerage.
Example: Buyer paid R$300,000 and cancels a non segregated project: developer may keep up to R$75,000 plus the brokerage; the rest is paid 180 days later. / About US$14,059 retained.Lei nº 4.591 of 1964, art. 67-A added by Lei nº 13.786 of 27 December 2018, Art. 67-A caput I and II, §§ 2, 5, 6 and 7, 2018-12-27 official text · verified 2026-10-27

Worked example

Off plan flat. A buyer agrees R$900,000 (about US$168,710) for a unit in a project under a segregated estate and pays R$300,000 (about US$56,237) during works. If delivery slips 4 months beyond the 180 day grace period, the buyer may keep the contract and receive R$12,000 (art. 43-A § 2). If the buyer instead defaults and the contract is cancelled, the developer may keep up to 50 percent of the R$300,000 plus brokerage, refunding the rest within 30 days after the habite-se (art. 67-A § 5).

Step by step

1. Check the matrícula for the registered incorporation memorial (art. 32) and any segregated estate annotation (art. 31-A).
2. Read the delivery date and grace clause (art. 43-A) and the cancellation clause (art. 67-A).
3. For existing buildings, read the convention and internal rules, including use and short stay clauses, and the latest budget.
4. Ask the manager (síndico) for a statement of fees owed by the seller before closing.

Common traps

Paying before the memorial is registered. Sales before registration breach art. 32.
Assuming the grace period is automatic. It applies only if expressly and prominently agreed (art. 43-A).
Underestimating cancellation costs. Brokerage plus up to 25 or 50 percent can be kept (art. 67-A).

Sources

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