In the North of the state, in Mirabela, merchant Elias Soares da Fonseca is still eagerly awaiting the documentation of his establishment in the so-called “terra do santo”, an area that has São Sebastião as its “owner”, since farmers donated a plot of land. for the saint in the late 19th century.
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The situation of the nursing technician and the trader is related to a historical problem that affects millions of Brazilians - massively, the low-income population -, severely affecting the economy and which is being alleviated by a recently enacted law: the lack of legalization of urban real estate. According to data from the Ministry of Regional Development (which incorporated the former Ministry of Cities), around 50% of properties in Brazil have some type of irregularity. There are 60 million urban households, 30 million of which are irregular – that is: their occupants have never been to a registry office to provide the deed. In Minas, a survey shows that 3 million properties are illegal, according to Colégio Registral Imobiliário de Minas Gerais (Cori-MG).
Subdivision by default of the law - deed
The “informality” of real estate does not distinguish social classes: it ranges from slums to luxury condominiums. The causes of the irregular situation are also diverse, ranging from invasions to subdivisions that were created in default of the law - or that were not approved and not registered - also going through the illegal sale of properties and for other reasons, such as the "donation to the santo”, which takes place in other Brazilian municipalities, in addition to Mirabela. In addition to accentuating the disorderly growth and precarious infrastructure of cities, it causes enormous economic losses for the country by opening the way for tax evasion, causing the Union, states and municipalities to stop collecting billions in taxes such as the Property and Land Tax Urban (IPTU), Tax on the Transmission of Real Estate (ITBI) and Income Tax (IR).deed
Losses from real estate irregularityare highlighted by lawyer Renato Góes, president of the Land Regularization Commission of the Brazilian Bar Association (OAB) of São Paulo. He is one of the authors of Federal Law 13,465/17, the so-called "Reurb" (Urban Land Regulation) and which also covers the issue of social interest ("Reurb-S"), aimed at the low-income population and which has the objective to legalize the situation of millions of urban landowners “without deeds”. A project was started in Minas to legalize these properties, based on Reurb-S, which benefits residents of Belo Horizonte and several other cities in Minas Gerais. The initiative is from Cori-MG, which offers technical support to city halls, training civil servants on the procedures provided for in the new legislation for the regularization of properties for low-income people.
The lawyer claims that the high percentage of illegal properties is a problem that has dragged on since the discovery of Brazil. “It should be noted that land tenure irregularity is a complex problem that arose on April 22, 1500 and has been getting worse every day,” he says. “The problem started in 1500, as the legislation applied by Portugal was not able to regulate the use of Brazilian land due to its dimension and peculiarity. For three centuries, Brazil insisted on the sesmarias system, created in Portugal in 1375 for another land ownership reality very different from the Brazilian one”.
MULTIPLE CAUSES
Among the various causes of the irregular situation, Góes points out “the mistaken and old maxim that the right to property is absolute, unrestricted and unlimited, the excess of rules and conflict of competences between federative entities, the absence of specific public policy, confusion land regularization with housing policy; absence or inefficiency of land use control, unrestrained population growth and absence of urban planning”, in addition to the economic crisis and real estate speculation.
The director of the Department of Land Regularization of Cori -MG, José Celso Ribeiro Vilela de Oliveira, points out that one of the reasons for the lack of land documentation is that “the massive urbanization process faced in our country in the last decades of the 20th century took place without organization or control”. He recalls that, “when dividing a plot of land, the developer has duties to the municipality and the community”, and must transfer a percentage of public areas so that the city can install services such as health posts, schools and green areas.
“The onus is on the developer to pay for the infrastructure works and this entire subdivision plan must be previously approved by the municipality. Afterwards, the documentation must be presented to the real estate registry, as a condition to legally sell the lots, as there is a need to protect consumers from this public offer. However, as a rule, none of this was being observed and the municipalities, with few exceptions, did not satisfactorily exercise their supervisory role. On the other hand, several public areas, in municipalities, in the state or in the Union were subject to irregular occupation”, reports the director of Cori-MG.
As for the fact that the problem of urban land tenure irregularity affects poor areas more, José Celso Oliveira explains: “Real estate is an economic asset. As such, the areas with the best location and vocation for urban use are more valued. Therefore, the sale value of lots in these areas is sufficient for the developer to bear the high cost of regularly parceling out a piece of land. The opposite occurs in less valued areas, to which the high cost of infrastructure works is usually added, as, in most cases, the topography is also unfavorable”. deed
Economic advantages of land regularization - deed
Lawyer Renato Góes highlights that urban land regularization, facilitated by the Reurb Law, of which he was one of the authors, has advantages with good results for the economy. "Land regularization generates advantages in several fields (legal, urban, environmental and social) and the improvement of these fields generates economic gain for people residing in the regularized nucleus, for people living in the city, for public authorities (municipalities, states and the Union )”, says Góes.
"The first economic advantage is the real estate valuation of those who now have a property title, which allows not only to provide legal certainty to the occupant, but also to the eventual acquirer, in addition to allowing and facilitating the use of the financial system, thus valuing the properties. irregular. A regularized landholding property will be equipped with infrastructure and will generate several gains, impacting the local economy”, he adds.
The director of Cori, José Celso Oliveira, also highlights the advantages of regularization. “Reurb allows for the valorization of properties, enabling more public investments for the areas, even with federal and international resources. In addition, owners can obtain financing to improve their homes or to open projects at lower interest rates”, he emphasizes. He points out that municipalities are also benefited. “Public administrations start to collect taxes, such as IPTU and ITBI, enabling the municipality to develop with quality and improve the provision of services to the population. In several cases, Reurb is accompanied by the improvement of public equipment and urban infrastructure, which are now offered to the population”, he observes.
According to Cori-MG, several municipalities have already started the regularization of properties by Reurb-S, encompassing informal urban centers predominantly occupied by low-income populations. Among the municipalities that develop the action are Belo Horizonte (jatobá, São Lucas, Itaipu, Urucuia and Jardim Leblon, among others), Brumadinho and Vespasiano (metropolitan region), Inhapim (East), Nova Porteirinha and Janaúba (North), Novo Cruzeiro and Catuji (Vale do Jequitinhonha) and Virginópolis (Vale do Rio Doce). According to data from Cori-MG, the number of properties regularized in the state through the project rose from 3,761 in 2017 to 5,245 in 2018. In 2019, 4,498 land and constructions were “legalized” in Minas.
The agency's director emphasizes that the regularization of urban centers requires collective action, involving the government and the community. “The watchwords for regularization going forward in a municipality are coordination of efforts and scale. Municipalities are the main actors responsible for carrying them out, but the population must organize themselves to request the demand. And it's no use trying to regularize individual or few houses. The larger the hiring scale, the lower the individual cost,” assures José Celso.
INSERTION IN THE ECONOMY - deed
Professor Pedro Seixas, coordinator of the MBA in real estate development and construction business management at Fundação Getulio Vargas, points out that the 50% rate of real estate is a problem that needs to be addressed. “But it is necessary to understand how this percentage of irregular properties is distributed among social classes and in which regions it is located. We have the issue of slums and irregular constructions, but informality is not exclusive to the cheapest and most precarious properties”, informs Seixas.
He points out that the lack of title to land and buildings “creates a barrier” for owners, as they cannot provide equity as collateral for loans. The specialist emphasizes the importance of regularization for the inclusion of people in the economy. “The formalization of real estate will bring economic advantages to a population that is on the margins of the financial system. After regularization, we will have the economic insertion of many families”, he says.
Source: Tajarat.com.pk
