In short
The patrimônio de afetação (ring-fenced estate) keeps the land and building of a development apart from the developer’s other assets, so that they answer only for the debts of that development. It is optional (“at the discretion of the developer”, Lei 4.591/1964, art. 31-A) and exists once an entry is made on the land’s matrícula (art. 31-B). If the developer goes bankrupt, the ring-fenced assets stay out of the bankruptcy estate and the buyers decide whether to finish or liquidate (art. 31-F). It does not guarantee delivery or price, and it changes the penalty and refund timing when a buyer cancels (art. 67-A).
What the regime does
Under article 31-A, the land, the buildings, and the other assets and rights linked to the development form a separate estate whose purpose is carrying out the development and delivering the units to the buyers. Its main features:
- The estate does not mix with the developer’s general assets or with other ring-fenced developments; it answers only for debts and obligations tied to its own development (paragraph 1).
- The developer is liable for damage it causes to the estate (paragraph 2).
- Its assets may be used as security only for a loan whose proceeds go entirely to building the development and delivering the units (paragraph 3, wording of Lei 14.620/2023).
- If receivables from the sale of units are assigned, the proceeds join the estate (paragraph 4).
How it is created and how to check it
Article 31-B says the estate is considered formed by the averbação (annotation) at the Registro de Imóveis of a document signed by the developer, and by the holders of rights to acquire the land if there are any. Existing real rights taken as security for the land price or the obligation to build do not prevent the entry. The buyer can check whether the entry exists by reading the matrícula of the land and the registration of the incorporation: see matrícula (property record). The summary box of the contract (art. 35-A) must give the memorial registration number and the matrícula (see buying off-plan in Brazil).
What the developer must do
Article 31-D lists the developer’s duties, including:
- Managing and preserving the estate, including through court action.
- Keeping each development’s assets apart.
- Raising and using the funds as the law provides, keeping resources needed to complete the work.
- Giving the buyers’ representatives commission, at least every three months, a statement of the state of the work, signed by qualified professionals, and quarterly accounts.
- Keeping the estate’s funds in a dedicated deposit account.
- Giving access to the work and the books to the person appointed to supervise.
- Keeping full accounts, even if the tax law does not require them.
Under article 31-C, the representatives’ commission and the lender financing the construction may appoint, at their own cost, a person to supervise the estate. This appointment does not transfer to them liability for the quality or the delivery date.
If the developer fails
Article 31-F provides that the bankruptcy or civil insolvency of the developer does not reach the ring-fenced estates: the land, the buildings and the other assets do not form part of the bankruptcy estate. In the sixty days after the declaration, the buyers’ condominium, called by the commission (or, failing that, by one sixth of the holders of ideal fractions, or by the judge), holds a general meeting. It ratifies or elects the commission and decides, by a two-thirds vote on first call or an absolute majority on second call, to set up the construction condominium and decide whether to continue the work or liquidate the estate. The same applies if the work is stopped (art. 43, item VI). The commission receives an irrevocable mandate to sign the final contracts with buyers.
When it ends
Under article 31-E, the estate ends when:
- The construction is recorded, the titles are registered in the buyers’ names, and the developer’s obligations to the construction lender end.
- The incorporation is cancelled by the developer, after returning to the buyers the sums paid (art. 36).
- The buyers’ meeting decides to liquidate under article 31-F.
Effect on cancellation and refund
When a buyer cancels, article 67-A, paragraph 5, allows the penalty to reach 50% of the amount paid (instead of 25%) and sets the refund at no later than 30 days after the habite-se (completion certificate). Without the regime, the balance is paid in one instalment after 180 days (paragraph 6). The details are in cancelling an off-plan purchase. A buyer therefore weighs better protection against insolvency against a higher penalty and a later refund.
What the regime does not do
The sources read do not say that the regime guarantees completion, quality or on-time delivery, or that it makes the buyer’s money safe from loss. Its effect is to separate the development’s assets from the developer’s other debts. The regime depends on the developer opting in and on the entry on the matrícula, which is why the check above matters.
What it costs
The law read does not set any fee payable by the buyer for the regime. The registry fee scale for annotations is a state matter; for the registry fees a buyer pays on the purchase itself see notary and registry fees.
Which professional to consult
A lawyer registered with the OAB can read the matrícula and the contract, and an engineer or architect can read the quarterly work statements (see architect and engineer). The reader checks professional registrations on official registers.
Frequently asked questions
Is patrimônio de afetação mandatory?
No. It is at the developer’s discretion (art. 31-A), though the contract and matrícula show whether it was adopted.
Does it guarantee my apartment will be finished?
No. It protects the development’s assets from the developer’s other creditors, and lets buyers decide how to proceed if the developer fails.
How do I know the development has it?
Check for the annotation (averbação) on the land’s matrícula at the registry.
Does it change my rights if I cancel?
Yes: the penalty can be up to 50% instead of 25%, and the refund is due 30 days after the habite-se.
Who supervises the money?
The buyers’ representatives commission receives quarterly statements, and it and the lender can appoint a supervisor.
More guides on new builds and condominiums
Sources
- Lei 4.591/1964, arts. 31-A to 31-F, 50 and 67-A (consolidated text, Câmara dos Deputados) (consulted 15 October 2026)
- Lei 13.786/2018 (original publication, Câmara dos Deputados) (consulted 15 October 2026)