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.