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TBO Glossary

Segregated estate (patrimônio de afetação)

Definition

The segregated estate (patrimônio de afetação) is the legal regime separating a project's land, works and revenue from the developer's general assets. Created by Law 10,931/2004 after bankruptcies left buildings unfinished, it ensures buyer funds stay tied to that specific project. In return, it grants access to RET, a 4% revenue-based tax regime.

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