How does real estate development work?
Posted: Tue Feb 18, 2025 5:36 am
The stages of real estate incorporation can be summarized in four points:
the developer: responsible for assessing the economic viability of the work , integrating the partnership between the land owner and the construction company
the construction company: in charge of construction
the owner of the land: the owner who provides the space for buildings
the buyers: those who, through a contract and advance ecuador mobile database payment, finance the construction of the units
In practice, development companies obtain the land, often offer some units as a means of payment to the land owners, integrate the construction companies, start the projects and sell the remaining buildings to raise the money to advance the project.
A construction company can act as a developer, but in the development project there are four distinct functions, as we saw previously.
>>> Read also: Tax evasion and avoidance: everything you need to know about tax planning
What is an earmarked asset?
Law No. 10,931/2004 introduced some changes to Law No. 4,591/64. Articles 31-A to 31-F regulate the so-called earmarked assets, which is the separation between the developer's assets and the project's assets.
By separating these two elements, the new project will have its own management and resources exclusively allocated to construction, which prevents the developer from using this asset to pay off debts, should it enter bankruptcy proceedings during the incorporation process.
According to art. 756 of the Civil Code , alienation and mortgage are subject to the power to dispose of the property, and, when the process is registered by the memorial, the developer can no longer dispose of the units sold.
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How does the process of establishing the affected heritage work?
To constitute the affected assets in the real estate incorporation process, it is necessary to register the term signed by the parties (developer and holders of real rights of acquisition over the land) in the Real Estate Registry or in the form of a declaration attached to the incorporation memorial, which is also registered.
To prepare both documents, it is enough to simply indicate that the incorporation process is contained in the allocation institute, as established in Law No. 4,591/64.
In addition to this term, other documents are part of the real estate incorporation process to be drawn up at the notary's office as an obligation of the developer.
the developer: responsible for assessing the economic viability of the work , integrating the partnership between the land owner and the construction company
the construction company: in charge of construction
the owner of the land: the owner who provides the space for buildings
the buyers: those who, through a contract and advance ecuador mobile database payment, finance the construction of the units
In practice, development companies obtain the land, often offer some units as a means of payment to the land owners, integrate the construction companies, start the projects and sell the remaining buildings to raise the money to advance the project.
A construction company can act as a developer, but in the development project there are four distinct functions, as we saw previously.
>>> Read also: Tax evasion and avoidance: everything you need to know about tax planning
What is an earmarked asset?
Law No. 10,931/2004 introduced some changes to Law No. 4,591/64. Articles 31-A to 31-F regulate the so-called earmarked assets, which is the separation between the developer's assets and the project's assets.
By separating these two elements, the new project will have its own management and resources exclusively allocated to construction, which prevents the developer from using this asset to pay off debts, should it enter bankruptcy proceedings during the incorporation process.
According to art. 756 of the Civil Code , alienation and mortgage are subject to the power to dispose of the property, and, when the process is registered by the memorial, the developer can no longer dispose of the units sold.
What is your biggest professional and/or student need at the moment?*
What is your greatest professional and/or academic need at the moment? *
I agree to receive communications.
By providing my data, I agree to the Privacy Policy .
Receive content first hand
should_not_change
We promise not to use your contact information to send any type of SPAM.
How does the process of establishing the affected heritage work?
To constitute the affected assets in the real estate incorporation process, it is necessary to register the term signed by the parties (developer and holders of real rights of acquisition over the land) in the Real Estate Registry or in the form of a declaration attached to the incorporation memorial, which is also registered.
To prepare both documents, it is enough to simply indicate that the incorporation process is contained in the allocation institute, as established in Law No. 4,591/64.
In addition to this term, other documents are part of the real estate incorporation process to be drawn up at the notary's office as an obligation of the developer.