BRAZIL Law and Practice Contributed by: Alberto Malta, Davi Ory, Ana Vogado and Maria Eduarda Amaral, Malta Advogados
1. General 1.1 Main Sources of Law The main legal instruments governing real estate in Brazil include: • the Federal Constitution, which ensures the social right to property; • Statute No 10,406/2002 (the Civil Code), covering possession, property, real rights and contracts; • Statute No 6,015/1973 (the Public Records Law), regulating property registration; and • Statute No 5,172/1966 (the National Tax Code), addressing applicable taxes. Although federal statutes are predominant, state-level rules (eg, transfer taxes) and munici - pal regulations (eg, zoning, land use and build - ing codes) play key roles. Additional regulations stem from administrative acts issued by agen - cies such as the National Council of Justice (CNJ), Instituto Nacional de Colonização e Refor - ma Agrária (INCRA), Banco Central do Brasil (BACEN), National Monetary Council (CMN) and Receita Federal do Brasil (RFB). Judicial prec - edents from the Federal Supreme Court (STF) and the Superior Court of Justice (STJ), espe - cially under general repercussion and repetitive appeals, further shape the legal landscape. As the applicable legislation is scattered across various sources, the relevant regulations for each sector may differ, although overlaps do exist. At a federal level, the following regulations stand out: • project development and construction: Stat - ute No 4,591/1964 (on Real Estate Develop - ments), Statute No 10,931/2004 (on Civil Construction and Segregated Assets), Statute No 6,766/1979 (on Urban Land Subdivision)
and Statute No 14,620/2023 (on the Minha Casa, Minha Vida Programme); • acquisition financing and project finance: Statute No 8,668/1993 (on Real Estate Invest - ment Funds), Statute No 9,514/1997 (on the Real Estate Financial System), Statute No 14,430/2022 (Legal Framework for Securiti - sation) and Statute No 14,711/2023 (Legal Framework for Legal Warranties); and • housing law, urban law, registration law and land legislation: Statute No 10,257/2001 (City Statute), Statute No 13,465/2017 (on Urban and Rural Land Regularisation), Statute No 12,651/2012 (Forest Code) and Statute No 4,504/1964 (Land Statute). 1.2 Main Market Trends and Deals In 2024, Brazil’s real estate market grew signifi - cantly. New developments increased by 18.6% and sales increased by 20.9%. These increas - es were driven by Benefícios do Trabalhador or FGTS-subsidised housing credit and the expanded Minha Casa, Minha Vida programme for families earning up to BRL12,000. BACEN’s interest rate hike cycle prompted a shift in housing credit structures, with greater use of real estate-backed securities (real estate credit bills or LCIs, real estate receivables cer - tificates or CRIs and covered bonds or LIGs) improving market liquidity. The corporate real estate segment saw a recov - ery, with high-end office spaces in demand and record net absorption, supported by a return to in-person work and a strong labour market. In logistics, e-commerce driven demand has intensified the use of built-to-suit and sale and leaseback models, increasing the value of peri- urban areas.
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