Condominium Law and REURB: Impacts on Fee Collection, Bylaws, and Management

Urban Land Regularization (REURB) not only converts possession into formal ownership but also directly impacts condominium law. Irregular buildings, subdivisions, and condominiums face major difficulties in collecting fees, registering bylaws, and exercising effective management.

With the issuance of the Urban Land Regularization Certificate (CRF) and the opening of individualized property registrations, these limitations disappear, allowing condominiums to fully exercise their rights.

1. Irregular Condominiums: Current Problems

1.1 Absence of individualized property registrations

·         Without registration, there is no formal owner;

·         Fee collection is weak, often based only on private contracts or internal meeting minutes.

1.2 Insecurity of condominium bylaws

·         Bylaws not recorded at the Land Registry lack erga omnes effectiveness;

·         Assembly decisions may be challenged in court.

1.3 Weak management

·         Property managers (síndicos) and administrators operate without formal backing;

·         The condominium’s tax and labor obligations are compromised.

Practical example: In an unregularized building, delinquent residents refuse to pay fees, alleging the condominium has no legal existence.

2. The Role of REURB in Condominium Law

2.1 Opening of individualized registrations

·         Each unit receives its own property registration;

·         Owners become formally responsible for condominium obligations.

2.2 Registration of condominium bylaws

·         After REURB, the bylaws can be registered with the Land Registry;

·         They gain erga omnes effectiveness, binding all unit owners.

2.3 Strengthening of fee collection

·         Fees become propter rem obligations (attached to the property), under Article 1.345 of the Civil Code;

·         Delinquency can be judicially collected through lawsuits or enforcement actions, with the possibility of foreclosure on the unit itself.

3. Practical Effects of Regularization

3.1 Administrative management

·         Property managers gain legal backing to administer the condominium;

·         The condominium can safely contract services and open a tax ID (CNPJ).

3.2 Financial management

·         Judicial collection against delinquent residents becomes fully viable;

·         Possibility of accessing condominium credit (loans for collective works).

3.3 Collective asset appreciation

·         Regularization increases the market value of units;

·         The condominium gains institutional strength, including in negotiations with banks and insurers.

4. Challenges and Considerations

Despite the progress, some points require attention:

·         Cost sharing of REURB: residents must be aware of joint responsibility;

·         Updating bylaws: many bylaws will need adjustments after regularization;

·         Transparent management: assemblies must document decisions to prevent litigation.

Conclusion

REURB is also an instrument for strengthening condominium law.

By opening individualized registrations, enabling the recording of bylaws, and allowing judicial collection of

fees, it transforms an irregular grouping into a fully functional and legally recognized condominium.

More than a formality, REURB is an essential step for condominiums and associations to achieve solid management, effective fee collection, and collective asset appreciation.