Real estate consortium plans: how they work before you buy

A real estate consortium is a way to plan for a purchase, construction project or renovation without taking out a traditional mortgage. Instead of mortgage interest, members pay installments with an administration fee and wait to be selected by a draw or bid.

How it works

A group contributes monthly to a shared fund. At each interval, members may be selected and receive a credit letter under the contract terms. Before joining, review the term, fees, adjustments, reserve fund, bid process and rules for using the credit.

When might it make sense?

A consortium may suit someone who is not in a hurry to move and wants to plan a future purchase. Waiting for selection may be a problem if you need a home immediately. Align the timeline with your goal.

Before signing

• Confirm the administrator is authorized.
• Read the contract, fees and adjustment rules.
• Understand drawings and bids.
• Do not assume you will be selected immediately.
• Compare it with financing and a cash purchase.

For official information, see the Central Bank of Brazil’s consortium guidance. Then compare homes on Planlar that fit your plan.

Cover photo: Roberto Tietzmann via Wikimedia Commons — CC BY-SA 2.5. Image adapted to a horizontal format.