Property regularization

Building put up without a permit in Itaim Bibi stood stalled for three years until it was regularized

City Hall requested the demolition in 2023. The court rejected the demolition but suspended sales, and work resumed only in July 2026, after new permits.

  • The 20-story building was constructed without a Construction Permit (Alvará de Execução), according to City Hall.
  • Demolition was denied, but sales, advertising and occupancy were suspended.
  • Work resumed only in July 2026, after new permits.

By MTC Serviços editorial team2 min read

Tall residential building in the finishing phase, with a construction fence on the sidewalk of a tree-lined street
Illustrative image. Not the building mentioned in the article.

A high-end residential building in Itaim Bibi, in São Paulo's West Zone, sat idle for about three years because it was built without a license from City Hall. In June 2023, the city's Attorney General's Office (Procuradoria-Geral do Município) filed a public civil action (ação civil pública) seeking demolition of the 20-story building.

What City Hall pointed out

According to City Hall, the builder erected the building without the Construction Permit (Alvará de Execução), did not present the quantity of Additional Construction Potential Certificates (Cepacs) required in the Faria Lima Urban Operation, and built above the zone's basic floor-area ratio. The action also sought compensation for collective moral damage, to be paid to the Urban Development Fund (Fundurb). The Public Prosecutor's Office also asked the courts for demolition.

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Demolition denied, sales suspended

In August 2023, the 10th Public Treasury Court denied demolition in a preliminary decision, considering the measure impossible to reverse. The judge granted City Hall's other requests: suspending sales, advertising and apartment reservations and keeping the building vacant, with a fine of R$ 50,000 per day for noncompliance.

Regularization

The situation only changed in July 2026. After obtaining from City Hall the Approval Permit and the renovation Construction Permit, the builder was authorized by the court to resume work. Sales remained prohibited until the renovations were completed and the Certificate of Completion was issued.

On July 31, according to the press, the São Paulo State Court of Justice lifted the sales restriction, considering it disproportionate to wait for the final certificate on a practically finished building. The release came after the builder proved payment owed to the city for the missing Cepacs.

What this changes for you

  • Building or expanding without a Construction Permit can lead to a stop-work order (embargo) and a lawsuit, including a demolition request.
  • Even with the work finished, missing documents can prevent the sale, advertising and occupancy of the property.
  • For properties built up to July 2014, the SP Amnesty accepts regularization applications until November 30, 2026.

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