Text allows immediate transfer of structures to city halls after administrative process and extends defense period for owners
The Urban Development Committee of the Chamber of Deputies approved on Wednesday (May 7, 2026), a proposal that speeds up the transfer of ownership of abandoned properties to municipalities and the Federal District. Under the proposal, the local government becomes the owner of the property immediately after the end of the administrative process. The requires a 3-year wait for provisional possession before the definitive transfer.
The approved text is the version presented by the rapporteur, deputy Fernando Monteiroto the deputy’s Bill 3694/21, in addition to PLs 2808 of 2022 and 423 of 2024.
According to the rapporteur, the current delay prevents city halls from renovating the buildings or using them for the public interest. “The waiting time reduces political effort and investments, as the owner can claim possession at any time”said Monteiro.
NEW RULES AND RIGHTS
To guarantee the right of defense, the approved text increases the period for the property owner to contest the city hall’s decision from 30 to 90 days. Other points in the text include:
- sale of real estate: city halls will be able to sell properties 3 years after repossession, if there is no dispute in court;
- use of money: the sale value must be invested in popular housing or areas foreseen in the city’s Master Plan;
- abandonment criteria: A property that has no one looking after it and whose owners have not paid taxes, such as IPTU, for at least 5 years is considered abandoned.
NEXT STEPS
The proposal is being processed in conclusive character and will still be analyzed by the Constitution, Justice and Citizenship Commission. To become law, the text must be approved by the Chamber and the Senate.
This text was originally published by Agência Câmara, on May 4, 2026. The content is free for republication, citing the source, it was adapted to the standard of Poder360.
