Resolution CMN No. 5,197, dated December 19, 2024, promulgated by the Central Bank of Brazil, has brought significant impacts in the realm of real estate law by incorporating and regulating the so-called Guarantees Framework. This regulation introduces the possibility of using the same property as security in multiple financings through the concept of "credit share." This model allows a property to be fractioned in terms of its guarantee value to be used in various credit operations.
The Guarantees Framework has also created opportunities for old credit operations that did not keep up with real estate appreciation. Now, the regulation provides clear and quantitative rules that enable the use of this accumulated value in new credit operations, making the system more efficient and equitable.
Positive aspects of the regulation:
- Increased efficiency in the use of properties as guarantees: With the "credit share" concept, the same property can be used for multiple operations, expanding financing capacity without the need for new assets as guarantees. This promotes greater flexibility and access to credit and capitalization operations for property owners.
- Stimulus for sustainable development: The clarity in quantifying remaining guarantees allows the borrower to better plan the use of their assets in future operations. This encourages the expansion of real estate and construction activities, fostering economic growth in a structured and sustainable manner.
- Legal security: The standardization and regulation of the Guarantees Framework reduce the risks of conflicts between creditors and other stakeholders, increasing market confidence and strengthening the legal basis for real estate operations.
- Appreciation of properties: Greater access to real estate credit boosts the market value of properties. This happens because cheaper credit increases purchasing power, resulting in greater dynamism in the used property market and encouraging new developments.
Conditions for contracting new credit operations secured by the extension of fiduciary alienation or mortgage must have:
- Terms equal to or shorter than the remaining term of the original credit operation at the date of contracting the new operation;
- The sum of the nominal value of the new operation and the outstanding balances of already guaranteed operations must be less than or equal to the guaranteed value stated in the original guarantee title;
- It is permitted to agree on conditions of remuneration, monetary update, and amortization different from those agreed upon in the original credit operation;
- In new credit operations guaranteed by the fiduciary alienation of subsequent property, it is permitted to agree on term and conditions of remuneration, monetary update, and amortization different from those agreed upon in the original credit operation.
Overall, Resolution CMN No. 5,197, which will come into force on July 1, 2025, represents a significant advancement in the real estate sector, promoting financial inclusion, more efficient use of guarantees, and strengthening legal security. However, it is essential to monitor its impacts to ensure that competitiveness, accessibility, and efficient management of guarantees are maintained in the long term.
