A large number of Brazilians use real estate financing to realize their dream of owning a home . Young people with plans to build a family, for example, look for a good property but often do not have the necessary capital. Whoever uses this type of payment needs to know the rules on works in financed properties, and that is what we will explain in this post.

Knowing about the subject is important to not have the joy transformed into loss or even loss of housing. Next, we will show what is or is not allowed by law when it comes to making improvements to a property that is still being paid. Follow the next topics!

Why does the law prohibit some types of works on financed properties?

Despite the great euphoria in leaving the house with our “guy”, it is necessary to know the legal requirements before starting any internal or external modifications. The main reason for preventing specific types of works on a financed property is the so-called fiduciary alienation contract.

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This instrument was made official by federal law 9.514 / 97 , which determines the ownership of the property to the owner while the buyer is paying off the installments that make up the value of the property. When the debt is paid, the contract obliges the owner to deliver the house to the new owner by means of a transfer document drawn up in a notary's office.

In this scenario, the financed property remains in the possession of the bank until the debtor pays the last installment referring to the price of the asset. For this reason, the future owner cannot carry out certain works on a house that, for the time being, is not actually his.

What improvements are allowed and prohibited?

Of course, improvements are permitted in a financed property . After all, during a period of ten or fifteen years (average duration of financing), the house wears out and can present some defects arising from the use of the structure.

Before beginning any type of renovation, it is important to contact the institution holding the financing to confirm what can and cannot be done on the property. In the following, we will show what is generally permitted and prohibited in financing contracts.

Permitted interventions

Maintenance works are authorized to contribute to the good use of the property. For example:

• changing or repairing the roof structure;
• painting the walls;
• waterproofing the ceiling;
• modernization or correction of electrical, hydraulic and gas installations;
• installation of cabinets;
• replacement of floors, coverings, sinks and toilets.

Prohibited interventions

It is necessary to remember that the prohibited works can be allowed by means of an authorization request made to the banking institution that owns the property. Among this type of intervention, we can mention:

• demolition of walls;
• building new environments;
• removal of support pillars;
• replacement of frames (without being damaged by use);
• alteration of the external facade.

With the examples cited, it is clear that any modification that changes the original plan or the total built area of ​​the property is not authorized.

What needs to be analyzed before applying for authorization?

Something that needs to be taken into account before starting the authorization application process is the reason for the work.

In some cases, the prospective owner has no intention of selling the property. Others have in mind to value the property in order to pass it on for a higher value than the purchase price.

For the first group, the structural works will serve to meet the family's wishes, such as comfort or aesthetic details. On the other hand, the second group needs to think ahead, that is, whether the changes in the property will meet the needs of future residents.

In some situations, a change in design does not align with the predominant profile of people looking for housing in the region where the financed property is addressed. If there is no such compatibility, the asset will be devalued .

As an example, imagine that a future owner gets authorization to transform the footage occupied by one of the rooms into a living area with a gourmet space.

This is an excellent project, but does the standard of families living in the region require this type of environment? Or does their profile include people who need more rooms because of their school-aged children?

With a little research, it is possible to understand the real estate “appeal” of the region and, thus, carry out works that will add more value to the property.

How to get authorization to perform a work that is not allowed?

Even when the structural work is released by the banking institution, other authorizations are still required:

• that of the liquidator, under the rules of the condominium agreement, if applicable;
• and that of the municipality of the municipality in which the property is located.

Before contacting the institution that granted the financing (the city hall or the condominium manager), it is necessary to observe the rules imposed by the Brazilian Association of Technical Standards (ABNT).

This body regulates the procedures that must be followed before, during and after any type of improvement, regardless of the type of property (residential or commercial). One of the requirements of ABNT is presented in the Brazilian Standard (NBR) 16.280, which dictates the need for one of the following documents:

• Technical Responsibility Note (ART) signed by engineers registered by the Regional Council of Engineering and Agronomy (CREA);
• Technical Responsibility Registry (RRT) issued by architects who are part of the Architecture and Urbanism Council (CAU).

Along with this documentation, NBR 16.280 asks those interested in carrying out a work to attach a detailed schedule with:

• a description of the type of service to be performed;
• the estimated deadline for the completion of the reforms;
• a plan with the changes to be made;
• the names and identification documents of the service providers that will make the improvements.

Although it can be a bit of a hassle, following these official procedures is the best way to not lose money and property.

As you have seen, construction work on financed properties requires a well-studied process. However, even if you have to wait a little and need to pay off the financing, the new owner will have a property of his own . When that happens, it will be time to realize new projects and dreams.