When signing the property purchase agreement, you must be very careful, after all, buying a property is a big step to be taken.
The real estate purchase contract is a document that formalizes the rights of the seller and the buyer. For these rights to be guaranteed, it is necessary to follow a series of formalities for their full validity. For this reason, it is very important to pay attention to all the details.
Many questions can arise during the process, and care is essential when buying a property, many of which the buyer is not even aware of. Here we explain what you need to know before doing this task.
Necessary care before buying a property
Analyze the property situation
Through the property purchase contract, all the terms that involve the transaction are specified, such as: values, identification of the good being negotiated and the chosen payment method, for example. After all, the document attests to the transaction of the amount to be paid for the property.
First, it is very important to analyze the situation of the property being marketed, as only regularized properties can be bought and sold. Therefore, investigate if the payment of taxes is up to date and if everything is in order with the deed of the property.
Analyze the owner’s financial situation
Another point as important as the first is to analyze the financial situation of the owner of the property with whom you intend to do business, as if he has any debt, for example, the sale of the property may be considered irregular and he may be withheld for payment of this debt, even after you have made the purchase.
Therefore, investigate if the owner of the property has any legal pending. In addition, it is important to know if the person with whom you are negotiating has a company in their own name, because if that company has any debt, the property can be used to pay off the amount owed.
Attention to property inspection
Do not forget to require a complete inspection of the property, including the common areas (if any), as the purchase contract is classified as ad corpus , which means “as is”, ie, if you find leaks, for example, after making the purchase, the previous owner is under no legal obligation to remedy the problem.
Yes, there are many issues you need to be concerned about, at least when buying from an individual. Fortunately, if you are buying a new property, either on- plan or ready-to-live , directly from a construction company, the process is much simpler, as it eliminates the need for all that investigation.
Read the descriptive memorial
But remember: if you are buying a new property, it is very important to read the descriptive memorandum carefully to ensure that the declaration contains all the characteristics of the property described by the builder or developer that will deliver it.
Thus, the descriptive memorial is like a draft of what the house will be. If the company responsible for the building does not deliver the property, the descriptive memorial can be used to file a lawsuit for breach of contract.
Clarify all doubts
If you purchase a property located within a condominium, houses or apartments, it is essential to check the condominium fees. Because, when you become the owner of the property, you become responsible for all your pending issues and outstanding debts, even if you did not originate them.
So, to make sure there are no tuition fees or late taxes, as well as outstanding fines, talk to the trustee or administrator in charge and clarify your doubts.
Writing a property purchase contract
The contract aims to stipulate the amount agreed between the parties in the negotiation, as well as the agreed conditions and, finally, the payment methods.
According to the Civil Code, which is a legal apparatus responsible for governing such contracts, both parties must consent to the negotiation and the good in question must be lawful.
The contract is a very important legal instrument, after all, it determines the duties and rights of the seller and the buyer, guaranteeing the completion of the negotiation, as well as the consent of both parties in a commercial relationship.
In addition, the contract also records the intention of two parties who have reached a common agreement. In the case of a property purchase contract, the agreement is the exchange of ownership of a property for a sum of money.
For this reason, it is essential that all the necessary information is present in the document, to guarantee its legality and proof of what was agreed in negotiation.
Attention to the details!
The contract for the purchase of a property can be drawn up by yourself, but as it is a very complex document, it is recommended that a lawyer specialized in the area is responsible for carrying out this task, as the contract must contain numerous clauses, which cover all possible scenarios during and after purchase.
The contract must contain information such as: personal data of the parties involved in the transaction, location of the property, area of the property, amount to be paid, conflict resolution, attachments and payment method (whether it will be financed or in cash). Further on you will find a model of a property purchase contract.
Pay attention to who is assigned the payment of extra fees and expenses involved in the purchase of a property, such as the payment of ITBI, a municipal tax that varies according to the city, but usually corresponds to around 3% of the property’s value.
If you are buying an apartment, check if there is a clause containing the statement from the landlord or administrator claiming that the condominium fees are up to date, because if the former owner has the condominium late, after the purchase, who should bear these spending is you.
If you buy a new property, directly with the construction company, the document will already be written, which is easy. However, if you are buying a property in the plant, pay attention to the clause that informs when the property will be delivered and what forms of compensation the company will grant you in case of delays in the work. Another important point in this situation is to pay attention to the rate of correction of interest on installments.
Carrying out the purchase
Property Purchase Receipt
It is common, after the purchase of goods, to receive a receipt, however, the transaction of purchase of a property is not a simple operation that can be summarized in a purchase receipt, that is, this is not a common practice in the market.
However, if you have purchased a property through a loan, it is common to require a receipt for the property after payment of all installments.
The deed of the property
After the purchase of the property has been completed, you must go to a Notary Public, with the property purchase agreement in hand, to issue the deed of the property at the registry.
In the case of financing, the property is only considered effectively purchased after all installments have been paid off. Only after that, the deed of the property can be issued, until then the property is in the name of the financial institution responsible for the financing.
The property deed guarantees greater legal certainty in relation to the property that has just been acquired by the buyer. To request the deed, it is necessary that the people involved in the transaction present the following documents:
- Identity Card – RG;
- Proof of residence;
- Proof of marital status;
- Proof of tax payment (ITBI/ITMCD);
- Certificate of ownership (current);
- Information about the property’s property tax;
- Property tax certificates.
This is a very important step, which not everyone completes. After issuing the deed, some go home and think everything is fine, but it isn’t. The simple signing of the document is not capable of legally affecting the deal.
Therefore, after issuing the deed at the Notary Public’s Office, it is necessary to go to the Real Estate Registry to, with the deed in hand, register the property in your name and generate a new registration number.
Otherwise, the property will remain in the name of the previous owner, and, in case of death, the property will go to inventory, since, according to Brazilian law, the property is only transferred after registration at the Real Estate Registry Office.
There, if you follow all these tips you will be ready to conquer the new property!
Property Purchase Agreement Template
We, at Live, together with K Machado Advogados, provide a model of the property purchase agreement to facilitate the entire process and speed up the acquisition of your new property.