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TBO Glossary

Distrato (off-plan contract termination)

Definition

A distrato is the termination of an off-plan purchase contract before delivery, with partial refund of the amounts paid. Brazil's Law 13,786/2018 set the rules: the developer may retain up to 50% of payments in projects under the segregated estate regime, and up to 25% otherwise. Waves of cancellations erode VGV already sold.

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