São Paulo Building Regularization Law enters into force

2020 begins with a new Municipal Law in São Paulo that provides for different procedures for building regularization of different built areas.

Illegal buildings completed by September 31, 2014, may be legalized through one of the procedures established by Municipal Law 17.202/19 (“Law”) provided that such buildings meet certain basic safety, use and accessibility criteria and do not fall into one of the categorized situations that would impede its regularization, such as, being located at public or non-buildable areas, forming part of Operation Urbana or Operation Urbana Consorciada, or not being in compliance with conventional urban planning restrictions for allotments.

The regularization of buildings with up to 1,500m2 can be subjected to a simplified declaratory procedure while a specific procedure was enacted for buildings with built area over 1,500m2, whether commercial or industrial.

There is a provision with respect to financial compensation to the Municipality for the regularization of buildings that exceeds the built-up area limit and another regarding the remission of previous property tax credits, resulting from the regularization.

To take advantage of the current Law, any ongoing regularization request must be withdrawn by the interested party. The São Paulo City Hall has set up a website for consultation and to obtain specific information regarding the status of each relevant property.

It is important to note that the interested parties will have 90 (ninety) days from January 1, 2020 to submit their regularization requests.

Demarest’s Real Estate team is available for any further information or clarification on this subject.