On November 13, 2024, Decree 1017/2024 (the “Decree”), which establishes new provisions to foster real estate projects promoting development from the initial stages, was enacted.
Among the changes introduced by the rule are established:
Divisible mortgages:
Which are designed to finance developments intended for:
– Horizontal property.
– Real estate complexes.
– Individual lots in projects with subdivision.
There are a series of requirements which must be met in order to use this type of financing:
– The property must be free of encumbrances or, if they exist, they must be accepted by the creditor.
– A detailed technical subdivision project describing each unit or lot is required.
– The parties must agree on how they will divide the debt and mortgage collateral among the units.
– The divisibility of the mortgage must be expressly registered in the Property Registries.
Mortgages on surface rights
Where the owner of a property may grant a surface right to develop a project. Also, the holder of this right may establish a mortgage on the same in favor of third parties, facilitating financing.
This decree became effective on November 13, 2024.
