Atlas · Governance
Maximum decadence period for the seller to reclaim a property under right of repurchase is 3 years
AnswerThe maximum decadence period for the seller to exercise the right of repurchase is 3 years, counted from the date of the contract.
Reviewed on 2026-10-02 · next review 2027-04-02
Data
| Who | Period | Condition | Source | Data of record |
|---|---|---|---|---|
| Property seller | 3 years | Reclaiming the property by returning the price and reimbursing authorized expenses | Law No. 10.406/2002 (Civil Code), art. 505 | 10/01/2002 |
Data consulted on 02/10/2026.
Basis
- Law No. 10.406/2002 (Civil Code, Planalto) (Planalto, in Portuguese): Article 505 establishes that the seller of a property may reserve the right to reclaim it within a maximum decadence period of 3 years, by returning the received price and reimbursing the buyer’s expenses.
How it applies
The right of repurchase is exercised by the seller by fully returning the price paid by the buyer, plus authorized or necessary expenses for the property. The 3-year period is decadential, meaning it does not require prior notification from the buyer and starts automatically upon signing the sales contract with a repurchase clause.
Limits
- The 3-year period is non-extendable and does not allow suspension or interruption by the parties' actions (art. 505).
- The repurchase right is only valid if expressly agreed in the property sales contract.
- The right does not extend to third-party buyers in good faith, unless the original seller exercises the repurchase within the legal period.
- The text does not address cases of express waiver of the repurchase right or subsequent contractual changes.
- Subsequent legislative changes must be verified directly at the source (Planalto).