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What to look out for before signing the property purchase and sale agreement

 

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The negotiation of a property causes a lot of emotions for both parties involved. Therefore, it is essential to be well prepared to sign the property purchase and sale contract. After all, this is the document that guarantees the security of this transaction.

On the other hand, the property purchase and sale contract also raises many doubts. Therefore, as our commitment is to help you throughout the real estate process, we have prepared this article with the main points of attention you should have before agreeing and signing. Check out!

After all, what is a property purchase and sale contract?

The real estate purchase and sale contract is the legal document that provides security for the transaction between seller and buyer who are negotiating a house, apartment, land or any other type of property.

Therefore, several clauses make up the property purchase and sale agreement, such as:

  • Property description: type, size, location, etc.;
  • Negotiation value: for how much the property is being sold;
  • Payment method: detailed specification of the payment method agreed between both parties, in addition to the number of installments, financial institution, etc.;
  • Deadlines: to ensure that the agreement is completed on time;
  • Penalties: specification of possible penalties in case of breach of contract;
  • Termination of the contract: in case either party withdraws from the negotiation.

9 points of attention before signing a property purchase and sale contract

Whether to buy or sell, see below everything that needs to be clearly stated in the contract for you to sign it:

  1. Make sure your details are correct.

Your information must appear correctly in the contract. Therefore, make sure your name, nationality, document number, marital status and address are correct and up to date.

  1. Read the contract very carefully

It is essential to carefully read all clauses and pages of the property purchase and sale agreement. In this way, enlisting the help of a lawyer can make all the difference. Thus, no information will pass unnoticed, nor will it be distorted.

The document must contain all the specifications of the property negotiated and the agreement between the parties involved. Therefore, a professional can ensure that the purchase and sale contract is correct, clear and fair.

  1. Read the descriptive memorial

The descriptive memorial is a document that gathers all the technical information of the negotiated property, mainly provided for properties in the plant. In this way, it gives buyers more security, because it describes the property that will be built and presents all the details of the building and apartment, such as finishing details, floors, doors, windows, painting, among others.

In addition, it is also very useful when making renovations , to know what can and cannot be changed, for example. Therefore, it is important that the buyer receives and checks this document at the time of negotiation.

  1. Carefully analyze the correction and interest rates

When it comes to the purchase of a property on the plant, it is also essential to check the interest on installments and the correction rate . Thus, it is possible to identify abusive charges, in addition to being able to accurately project the flow of payments for a loan. And you’ll be able to organize your personal finances so you don’t get in trouble.

  1. Check all property documentation

All property sold must be registered with the City Hall with the name of the new owners, and it also needs the authorization of all inspection bodies in this process.

Therefore, before signing the property purchase and sale agreement, it is also important to check that this documentation is correct.

There are several documents required for the purchase and sale of property, such as Updated Registration, Deed, Inhabit, Certificate of Real Encumbrance, Registration of the construction with the Real Estate Registry, Registration of repossessions and disposals, TCA (Registration and Appraisal Fee) , Floor plan, ART (Technical Responsibility Note) of the engineer responsible for the work, purchase and sale contract, among others.

  1. Confirm the settlement of condominium bills

If you are buying an apartment that has had another owner before, confirm that all condominium fees have been paid. It is even worth including a clause in the contract stating that no charge prior to your possession will be your responsibility.

  1. Make a thorough inspection of the property

Another extremely important point before signing the purchase and sale agreement is to inspect the negotiated property. This is the way to ensure that the property is equal to what was described in the purchase and sale agreement, and its attachments, such as the descriptive memorial. And so that you are not dissatisfied with the investment .

The inspection must be done with great attention to the smallest details, whether inside the apartment or in the common areas of the condominium, if applicable. So, you guarantee that the conditions are in accordance with the delivery.

To know what to analyze and not miss anything, check out our article on what to evaluate in the structure of a property , which will definitely help you a lot!

  1. Check other fees and expenses

In addition to the value of the property itself, there are also other fees and expenses that may vary according to the municipal laws of each city, such as brokerage fees, deeds, property tax , among others. Some are the seller’s responsibility, while others are the buyer’s responsibility.

Therefore, it is very important to know them so that you pay only what is your obligation under the law, and to make sure that each party will fulfill its responsibility.

  1. have no doubts

Even knowing a lot or reading about the subject, and even if it is not the first time you buy or sell a property, this is a bureaucratic process that can generate many doubts until it is concluded. Therefore, the most important thing first of all is to clarify everything!

If you need to know more about the property itself, talk to the real estate agent, construction company, or the owner you are negotiating with. But if you have questions about contract issues, don’t hesitate to contact a lawyer.

Finally, it is worth mentioning that although the real estate purchase and sale agreement is fundamental, according to the law, ownership of the property can only be transferred after its registration at the Real Estate Registry Office. In the case of financing, the contract is issued by the bank itself.

 

Understand how a Real Estate Consortium works – know your options for acquiring real estate!

Fulfilling the dream of owning your own property can be easier than you think. Today, the market offers different types of options and terms to acquire a property. This is especially true for financial planning.

Although financing is still the most popular form of payment, it is not the only one. We prepared this post precisely to talk about another option that is growing more and more in Brazil: the real estate consortium.

Now, do you know how a real estate trust works? Follow the post to find out:

-? What is a Real Estate Consortium -? Relevant data that proves that the real estate consortium is growing in the country -? The facilities it provides to help you acquire the property of your dreams

What is a Consortium and what is it for?

The consortium is a purchase modality. Basically, it is based on the union of people, whether natural or legal, with the purpose of creating savings for the acquisition of goods. The formation of these groups is carried out by a consortium administrator, always authorized and supervised by the Central Bank of Brazil.

The modality emerged in the beginning of the 1960s. With the growth of the automobile industry in Brazil, there was a lack of credit for the final consumer. Bank employees then formed a group to raise money for car purchases. This resulted in the formation of the first consortium!

In this system, the value of the asset is diluted over a period, and all members of the group contribute over this period. The contribution can be monthly, or as stipulated in the consortium contract. The administrator, then, by drawing or bidding, gives the value of the credit or the contracted asset, until all are met.

In the real estate consortium it’s the same thing. A group is formed and the value of the asset is diluted over a period. During this time, all members contribute and when the value of the item is reached, it is drawn to one of the members of the group. This happens until everyone in the group is drawn or has their own property.

Number of adhesions to the real estate consortium in Brazil grows in the 1st half of 2021

The real estate consortium is on the rise in the country. This is because this type of investment works as an alternative to traditional real estate financing. More than 37 thousand participants were awarded properties in the 1st half of 2019.

According to data from the Brazilian Association of Consortium Administrators (Abac), the demand for quotas in the real estate segment grew by more than 20% at the beginning of 2019. This indicates the possibility of real estate consortia reaching one million active participants in the country.

Between January and June of this year, there were more than 124,25 thousand adhesions. The average ticket of the real estate consortium, in June, registered the second highest index of the entire system of consortia, with a value of R$ 149.28 thousand reais.

The amounts made available in credits to the consortium members total R$ 3.77 billion reais. All this money was potentially injected into the housing market. In other words, there is a frequent growth in membership of real estate consortia, a high number of people being contemplated and an exorbitant amount of money being placed on the market, which shows a heating in the sector.

How can the real estate consortium help in the realization of the dream of a property or land of its own?

The purpose of the consortium, as well as the financing, is to obtain resources to acquire a good. The consortium methods, however, have some differences in relation to other types of credit acquisition.

# Time

The main difference from a loan, for example, is the time. Buyers who join a consortium will have to wait to have their own property. There is no forecast date when the resource will be available for purchase of the property.

In financing, the client borrows funds from the bank and then pays them back with interest. It is an individual and direct method, which brings enormous risks due to the high interest rate.

In the consortium, the group makes monthly contributions, determining the number of letters of credit that will be made available per month. This makes the dream of home ownership possible for each member, but only one at a time, because there is no money available for everyone at the same time.

The advantage is precisely the feasibility and diversity of payment terms and the flexibility in the use of credit. This gives the consortium participants a real possibility to obtain credit and even purchasing power in cash, without the costs of bank interest.

# Planned budget

In the financing, the installments can exceed the value of the family income, in the real estate consortium this can be adjusted. The quotas are usually values ​​that fit the budget. Which, in turn, makes the consortium a valid long-term planning option.

In addition to being flexible, it allows the use of resources for different purposes. The letter of credit can allow the purchase of real estate, land, or even renovations. Also, it can be used to pay off real estate financing.

However, keep in mind that the money should be spent on what was planned. That is, it is no use paying the monthly fees and reverts the value to something that was not in the plans.

# Fees and Interest

Another important point to consider are the rates and interest placed on the modalities of obtaining resources. The consortium emerges as a great way to save.

The interest is lower than the financing, and the installments – as mentioned in the previous item – are planned to fit the family budget. The real estate consortium, therefore, is designed to have a lower financial cost.

Clients pay the management fee in the real estate consortium during the entire contract period. In financing, fees are paid annually.

In a hypothetical situation, the percentage of 12% to 22% that would be paid in a consortium, will have to be paid in 60 months. However, in a loan, approximately 9.5% of the average rate should be paid in just one year.

So, always be on the lookout and look for a real estate company that has a good portfolio. Besides, of course, seeking information about the administrators from the Central Bank.

 

Property Sale – Follow the step by step to sell your property

Morumbi modernity, green areas and good shopping are worth the choice

Property Sale – Follow the step by step to sell your property

Selling property has become a practical and relatively quick process in modern times. However, it is important to be careful with the details surrounding this type of transaction.

It is a process that, despite being smooth, requires dedication and patience. Time availability is another important factor. After all, something fundamental in the sale of properties is visits for the setting of the buyer.

Want to know what else is important to sell your property? Follow our quick walkthrough of everything you need to check out!

Documentation – Prepare all paperwork before going to a real estate agency

The first step in selling your property is, without a doubt, to check all the paperwork. The snags involving this type of issue can yield you, in addition to a headache, an unnecessary waste of time.

Among the main documents to be validated by the property owner are:

# RG and CPF of the seller and his spouse (if married)
# Marriage certificate (if married)
# Birth certificate (if single)
# Certificate of achievement issued by the Federal Court and the Labor Court
# Negative certificate of the interdiction and guardianship
certificate # Civil Distributor Certificate – Forum

This documentation is to ensure that the person who is selling does not have legal problems or embargoes. From the property, it is possible to list:

# Property or Registration Certificate
# Real Estate Transfer Tax (ITBI)
# Municipal Debt Clearance
# Declaration of condominium discharge (in the case of apartments)

Once this is done, it is now possible to choose a reliable real estate agency and place the property on the market for new negotiations.

Real Estate – Why it is important to have the help of a qualified professional

Searching for a real estate agent can make your property entering the real estate market easier and more practical. Although direct sales are less bureaucratic, with the real estate agency, it will be possible to have professional assistance.

The risks to the property owner are reduced, and the chance of forgetting something important is less. Also, several brokers within the real estate will already have in their portfolio of contacts, who may be interested in your property.

Leaving the property in the hands of someone you trust can make it much easier to visit the property. This type of specialist can, in addition to setting the shoppers around, explain the positive aspects of the neighborhood and the region.

Another point is online advertising. Fundamental to a good sale, it is the buyer’s meeting point and first contact with your property. Good photos, excellent lighting and preparation for the presentation of the property are essential for the sale.

Property Preparation – How to win over buyers at a first glance

It was talked about from trustworthy people a little while ago. Your property, in this case, must also pass on confidence to its buyer. Cleaning it, for example, is a good starting point when it comes to preparing the property.

The organization, care and care for the environment will make the property more attractive. In visits, it will bring another perspective to people who are checking the property. In the ad images, it will bring another potential to buyers’ expectations.

So, always do extra cleaning, don’t let anything stay out of place for too long. Prepare the rooms so that they are clean and well lit. Small details can have a very large psychological effect.

Broken tiles, unprotected outlets, crooked light fixtures and light fixtures, and broken furniture can give an impression of neglect. In addition to putting the idea of ​​the property needing a renovation. This is the word that causes the most shivers to those who are going to buy it, along with the expenses it brings. So, take care of these details and sell your property much faster.

Calculate and disseminate – Choose the right channels and stay within real estate market standards

Once the preparations are finished, it’s time to put your property on the air! The first thing is to define with the real estate agency, or by yourself, which are the best channels for this sale. Check quality sites and build a killer ad.

The best channels are the portals of the real estate companies, private brokers or even the main free sale websites. A real estate loop (loop website), for example, is one of the best at putting your property on the air.

Also, be aware of the price of your property. Valuing too much and asking for prices above the real value tends to “backfire”. The number must be well fixed and must remain faithful to the real value of the property.

If it is too high, it will drive away potential buyers who will not even look at your property. That’s right with all the previous preparation. If the ad has a low value, it can be synonymous with extra expenses that come with the property. So stay true to the price.

That kind of honesty is appreciated by many buyers and, in the end, it will be to everyone’s advantage. Some tips for calculating the price of your property are:

# Search for similar properties and in the same region
# Assess the value of the square meter with a professional
# Compare the size of your property with that of another in the same region
# Analyze the conservation of the property and leisure areas and extra features
# Account for renovations made recently and the number of bedrooms

 

Property Deed – Understand how the process works and be always up to date with your records!

Have you ever thought how important it is to be up to date with your documents? Many people are in the habit of giving importance to some documents and neglecting others. Not least, this can be synonymous with a headache when the subject is immobile.

There are some very important documents when it comes to buying property. This post was born specifically out of the need to talk about them. After all, not all consumers know about these documents and what they are for.

With this post, you can check:

-? What is the Property Deed -? Important Details about Property Registration -? The importance of being up to date with documents

What is the Property Deed?

The deed of a property is the document that validates the agreement between the parties. As an official public document, it is drawn up at the notary’s office. Also, it serves as the first step to be taken after signing the contract.

This purchase and sale contract, in turn, is an agreement that obliges the parties to honor the established commitments. The difference is that, while the contract only establishes a commitment, the deed makes it valid and makes the transfer of the property official.

Giving a practical example: In the case of a cash purchase, it is necessary to produce a deed, whereas in the case of financing, the contract issued by the banks replaces the deed. However, this document must exist and be used to make the transaction official.

Did you understand the importance of the property deed and how it is necessary to be up to date with it? Let’s go ahead!

Obligation – Find out what the obligations are regarding the deed

The property deed is a mandatory document. That is, it is a necessity and must be signed when buying and selling a property. As previously stated, the deed is the document to be provided after signing the purchase and sale contract.

It is mandatory that this document be made so that the purchase and sale process can be continued. Also, this document is drawn up in the notary’s office. This is because the holders and representatives in the notary’s office are legally endowed with public faith for registration. (According to Law No. 8.935/94 in its art. 3)

Now, have you put the deed taxes and fees into your account to purchase your new property? Well, the financial part of this document is neglected in some cases. Therefore, always keep in mind that there will be other expenses in addition to the property’s value.

What is the value of documents and how to prepare for them?

At least two amounts are charged at the notary office for issuing the deed of a property. They are: the fees of the office itself and the cost of ITBI. The latter is the acronym for Tax on Real Estate Transfers (ITBI).

This is a city tax and must be paid upon transfer of ownership. The value of the registry office is charged according to a progressive table, which varies according to the real value of the property. The ITBI can be up to 2% of the value of the property stated in the deed.

This means an expense proportional to the market value or the real value of the property. Therefore, to prepare yourself well, calculate the percentage on the value of your property and then add it up with the notary fees of the other necessary documents. Thus, you won’t have to go through suffocation when solving the bureaucratic part of the purchase.

Giving a practical example, let’s suppose that a consumer – encouraged by the heating up of the real estate market – decides to buy a land worth R$150,000. The calculation will be 2% on top of 150 thousand, added to the notary’s fees on the property’s value.

This would give roughly R$3,000 reais in ITBI and approximately R$2,100 with the notary office, which would bring the total cost closer to more than R$5,000 reais. Although it’s not a lot of money compared to R$150,000, it can catch consumers off guard at the time of purchase.

Property Registration – Be the ultimate owner of the property of your dreams

After the property deed process, it is necessary to send it to the real estate registry office. All so that the transfer – made by the deed of the property – is registered in the property’s registration.

Of course, each property has its own district, that is, its own place to register. So make sure you go to the registry where your property belongs. This is checked through the location of your new property.

After registration, the registration of the property, all the data of the new owner will be attached. In fact, this registration number is very important. In it are registered all the history, description and data of the owner. So, always keep it well kept.

If you do not follow all the steps of deed and registration, you may be living in a property that is not yours. At least not officially. So, always pay attention to documents and check everything before relaxing in your new property!

 

Prices for new and used property are almost the same

The resumption of the real estate market is evident. Recent survey data assumes that industry sales are growing steadily. Another novelty is the equivalence of prices between the two most popular types of property categories. New and used.

Several factors influenced this conclusion, based on a FipeZap survey. Do you want to know more about the two types of properties and how the market presents optimal conditions for investments?

In this text you will learn:

-? The behaviors of both in recent years -? Price equivalence data -? How do market strategies influence the price

-? The ideal time for investments

Different Behaviors – The crisis of years ago reflects on the price of real estate today

Buying or selling real estate has become simpler over the years. According to perspectives from the Department of Economy and Statistics at Segovia – SP, between June 2018 and June 2019, there was a 176% increase in the total number of new homes sold.

This data alone illustrates the expectation for the rest of 2019. This recovery is a victory for the real estate sector, which, since 2008, has suffered from the price of houses and apartments. All thanks to the famous economic crisis that spread to various sectors of the national economy.

However, the behavior of the market has changed. If in 2008 the situation was chaotic, in 2014 the value per square meter of real estate began to take on a different pattern.

While the square meter of new properties became cheaper and cheaper, the square meter of used properties became a little more expensive. The result was that the price difference, which used to exist between these two categories of properties, has practically disappeared.

Market Data – How Prices Become Equivalent

All this behavior can be illustrated in data. According to a survey carried out by Group Zap itself – owner of the Zap and Viva Real estate advertising sites – the behavior of the properties was the opposite.

Between 2014 and 2019, the average value per square meter of used properties rose by approximately 12.2%. While the average square meter value of new properties – those sold directly by construction companies – remained down 20.2%.

To give you an idea, the average difference between the square meter of a new property and a used one, in 2014, was 33%. This equates to a price of 11,838 reais for the square meter of new property and 7,922 reais for the used one.

As early as 2019, this difference in the average price per square meter dropped to 6%. In other words, new property had its price per square meter reduced to 9,451 reais, while the square meter of used property rose to 8,888 reais.

All this, of course, taking into account the average prices charged in the first half of each year. This record, although exclusive to São Paulo, does not fail to reflect a trend for other urban centers.

Market Logistics – Sales inventory and different strategies

Market logistics and external factors are one of the decisive patterns for this change to take place in the real estate sector. This logic can be understood as targeting.

In the case of new projects, construction companies work with hundreds of properties. All are new, units designed to offer different types of patterns and concepts. A real estate market for the end customer to make their purchases.

Also, the sale frequency of construction companies is different compared to that of used property owners. Several sales take place at the same time, which brings these builders closer to economic trends.

In other words, if the demand for real estate falls, the number of real estate runs aground. If there are more apartments or houses than what they sell, prices fall. Already in used ones, usually the person’s stock is just the property he owns.

Therefore, the owner of a house simply does not lower the price because it is difficult to sell. Often the ad stays on for two or three years until the person who buys it appears. In many cases, the property owner still withdraws the product from the market.

The price difference between the two, precisely because of these market details, practically disappeared from 2014 to 2019. Today, whoever buys a used apartment or house may end up paying more than a new property. Even with similar characteristics, such as footage, location, rooms or parking spaces.

Time to invest! – Proper time to complete your plans

This is definitely a good time for investments. Of course, these investments should be based on your needs. Regardless of whether you purchase a used or new property.

The trend is for new properties to remain at lower prices for a while. Even with prices falling relatively quickly, it doesn’t mean they will now appreciate.

The same is true for used properties. The tendency is for them to be acquired for possible resale, which can represent a good deal. Second-hand prices are expected to recover faster due to “out of stock”.

The bottom line is: Home prices are low and there are plenty of options on the market, both new and used, at equivalent prices. Therefore, this is the perfect time to get back to investing in the sector or to resume the postponed plans for acquiring your dream property.