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!