The house has been there for twenty years. It has bedrooms, a kitchen, a garage and even an outbuilding at the back. But, for the land registry, the property is just a plot. The day the family needs to sell, finance or go through probate, the problem appears: the bank will not finance, the buyer grows suspicious and the value plummets. The house exists, but it does not exist on paper.

Here you will learn what deed registration is and the step-by-step process for regularizing a building, along with plot subdivision and merging and other documents that City Hall and the land registry ask for.

What deed registration is

Every property has a title record at the land registry. It is like its birth certificate: it holds the area, the dimensions, the owners over time and everything that has happened to it.

When someone builds, extends or demolishes, this must be noted on the title record. That note is called deed registration (averbação). Without it, the title record goes on describing the old property, and the building, for legal purposes, does not exist.

And why does this matter? Because an irregular property is harder to sell, cannot serve as collateral for financing, complicates probate and division of assets, and loses market value. What is more, nobody can be sure what they are buying.

The good news is that, in most cases, it can be regularized. The path runs through four places: the design, City Hall, the Federal Revenue Service and the land registry.

Step 1: the regularization design

It all starts with measuring what already exists. The engineer goes to the property and carries out a complete survey of the building: each room, each wall, the built area of each floor, the position on the plot and the distances from the boundaries.

With this survey, they produce the design for deed registration, also called the regularization or "as-built" design. It shows the building exactly as it is, and not as it should have been.

At this stage, the design is also compared with the city's legislation. If the building respects the parameters, great. If it exceeds any of them, for example, a setback smaller than required or a built area above what is allowed, the path may involve adjustments, compensation or falling under municipal regularization laws, where they exist. Each City Hall has its own rules, and this is where local experience makes a difference.

The design comes with the ART, which identifies the engineer responsible for the survey and for the information submitted.

Step 2: City Hall and the occupancy certificate

With the design ready, the process goes to City Hall. The approval department analyses the design, checks it against the municipal register and the legislation, and may issue requirements, which the technical manager answers.

Once the design is approved, City Hall carries out an inspection and issues the occupancy certificate (habite-se), which in some municipalities has another name, such as construction completion certificate. It is the document attesting that the building is finished and fit for use, in accordance with the approved design.

At this stage it is also common to update the property register, which affects the IPTU property tax, and to pay the municipal fees for the process. Buildings put up without a permit may be subject to surcharges under local legislation.

An important note: for new builds, the correct path is the reverse. First the design is approved and the building permit obtained; then the construction happens; and, at the end, comes the occupancy certificate. Regularization is the path for those who built before going through the process.

Step 3: Federal Revenue Service and CND

The third stop surprises many people: the Federal Revenue Service. Every construction work generates, as a rule, social security contributions on the labour used. So, for deed registration, the land registry demands the building's tax clearance certificate, the CND.

The path is this: the work is entered in the CNO, the National Construction Registry. Then the details of the work, such as area, type of construction and period, are declared for assessment, which calculates whether any contribution is owed. Once what is due has been paid, or it has been shown that nothing is due, the Revenue Service issues the certificate.

The amounts depend on the area, the standard, the type of labour and the payments made during construction. So invoices and receipts kept throughout the build can make quite a difference.

Step 4: the land registry

With the occupancy certificate and the CND in hand, the application for deed registration is submitted to the land registry, with the request, the approved design or plan and any other documents the registry requires. The registry checks everything and records the building on the title record. From then on, the house finally exists on paper too, and the property can be sold, financed or divided safely.

Area schedules and specification reports

In some cases, the land registry and City Hall ask for additional technical documents, and the two most common are these.

The first are the area schedules of ABNT NBR 12721. They are required when a property is to be divided into independent units, such as apartments, commercial rooms or houses in a condominium. The schedules calculate the private area of each unit, the common area, the ideal fraction of the land and the cost of construction, which form the basis for the real estate development filing and the establishment of the condominium.

The second is the specification report. It describes the property, or the construction, in writing: the dimensions, the adjoining owners, the area and, for construction work, the materials and finishes. It is the document that turns a drawing into text that can be registered, contracted and checked.

It appears at various moments. At the land registry, the report describes each plot or unit in order to open or update title records. In a building contract or when buying off-plan, it is the guarantee of what was promised: the type of flooring, windows, sanitary ware and wall coverings. If the property is delivered with an inferior finish, the report shows the difference. That is why a vague report, with expressions such as "first-class finish" or "similar", offers little protection. A good report is specific.

Plot subdivision and merging

Another frequent question: can you divide one plot into two? Or join two plots into one? You can, and the technical names are subdivision and merging.

  • Subdivision (desmembramento): a plot is divided into smaller plots, making use of the streets that already exist.
  • Merging (remembramento): two or more neighbouring plots are unified into one, which is common when someone wants to build something larger.

In both cases, the process is approved by City Hall, which verifies that the new plots respect the minimum area and minimum frontage required by municipal legislation, as well as the general rules on urban land subdivision in Federal Law 6.766/1979. The engineer carries out the topographic survey, the plan of the current and proposed situation and the specification reports for each plot. With approval, the land registry closes the old title records and opens new ones.

For rural properties, division follows other rules, with georeferencing and INCRA certification, the subject of episode 10.

Developments: EIV and traffic impact

Finally, a case for larger developments. Supermarkets, condominiums, schools, logistics warehouses and other developments that change the dynamics of a neighbourhood may need a neighbourhood impact study, the EIV, provided for in the City Statute (Federal Law 10.257), and a traffic impact report. They analyse effects such as increased traffic, parking, noise and infrastructure, and propose measures to reduce these impacts. Which developments need these studies depends on each municipality's legislation.

Common mistakes

  • Leaving deed registration until you need to sell.
  • Throwing away the invoices from the build.
  • Extending the house without a permit, thinking you will regularize later.
  • Dividing a plot by word of mouth, without approval, which does not generate a new title record.

Frequently asked questions

What is deed registration of a building?

It is the note, on the property's title record at the land registry, that there is a building (or an extension, or a demolition) on the plot.

Which documents are needed to register a building on the deed?

As a rule: an approved design or building plan with an ART, the occupancy certificate (or equivalent) from City Hall, the building's CND issued by the Federal Revenue Service and a request to the land registry. The registry may ask for additional documents.

What is a CND for a building?

It is the tax clearance certificate for the social security contributions on the work, issued by the Federal Revenue Service after registration in the CNO and assessment of the work.

Can a house built without a permit be regularized?

In most cases, yes, through a regularization design, in accordance with municipal legislation, which may provide for adjustments, compensation and surcharges on fees.

What is the difference between plot subdivision and merging?

Subdivision divides a plot into smaller plots; merging joins neighbouring plots into one. Both need City Hall approval and recording at the land registry.

When are NBR 12721 schedules required?

When the property is to be divided into independent units (real estate development and establishment of a condominium).

Does my development need an EIV?

It depends on municipal legislation, which defines the types and sizes of development subject to the study.

How long does deed registration take?

It depends on each City Hall, the land registry and the documentation, which is why the initial analysis is so important.