Purchasing a property in lahore smart city is a process that requires care. Generally, we tend to focus on finding the ideal place, with good conditions to meet our needs and expectations. However, there is another essential factor that does not always receive attention: property registration and all the bureaucracy involved in this process.
In order to have your property properly, it is necessary to make sure that all documents and legal steps are in order – including the registration of the property acquired. Otherwise, there is a risk of facing several problems.
But do you have all the necessary information about land registration? In this post, you will understand in detail what this process is and how it works.
Read on and learn more about the subject!
What is property registration?
When it comes to the bureaucracy surrounding real estate, it is essential to differentiate some central documents. There is often confusion between the property registration, the deed, and the purchase and sale agreement.
They are all indispensable and, in a way, depend on each other. The property registration refers to the formalization of the new ownership of the property with the Real Estate Registry Office. It is only with this document that the assets are legally in your name.
To carry out the registration, it is necessary to take the deed to the registry and start the process. The documents delivered will be analyzed, and the period is usually up to one month for the property registration to be modified and ownership effectively transferred.
Therefore, it is important to highlight that the purchase and sale contract, or even the deed, is not sufficient for Brazilian legislation. They are part of the purchase process but do not affect the transfer.
Know the differences between these documents and the registry.
Purchase and Sale Agreement
The purchase and sale contract is the first document that formalizes the business carried out. In it, the rights and duties of both the seller and the buyer of the good are registered. The contract proves the negotiation but does not ensure ownership.
The public deed is the next step to the purchase and sale contract. The previous document must be taken to the notary’s office to be made official by the notary. Then, there is the payment of the Tax on the Transfer of Real Estate (ITBI).
The bookkeeping process makes the contract move from being private to being understood as a public, official transaction. Thus, she is the proof of the deal being done.
Therefore, many people believe that this is the last step. However, it is only the registration that guarantees, in fact, ownership of the property.
50% discount for first property registration
Few people know this information, but when purchasing the first property, the buyer can only pay half of the deed registration fee at the Real Estate Registry Office, as he has the right to guarantee a 50% discount.
According to the Public Registry Law (Law No. 6015/1973), through article 290, the discount is valid only for those who purchased the property financed by the Housing Finance System (SFH), with resources from the savings account and the guarantee fund.
And if it is within the rules of Minha Casa, Minha Vida (MCMV), the buyer’s discount can vary from 80% to 90% of the registration fee charged by the registry, as provided for by Law No. 11,977 /2009, through of the sole paragraph of article 43.
- 80% discount: if the monthly family income exceeds six or even 10 minimum wages
- 90% discount: if the monthly family income is greater than three and equal to or less than six minimum wages
In addition, if the monthly family income is below three minimum wages, the bank financing contract is made by the notary’s office free of charge.
However, it is important to remember that the discount does not apply to the Real Estate Transfer Tax (ITBI), cannot be obtained as a refund, and must be requested prior to registration. And, if the circumstance of the purchase of the property is by fiduciary sale, the buyer is not entitled to the discount.
To prove that this is the first acquisition, the buyer must fill out a declaration signed with the notary’s office. He can apply for a clearance certificate from the real estate registry where he resides. However, some registries require the acquirer to make a declaration that it is the first purchase by the SFH.
It is also possible to provide proof of first acquisition through Caixa Econômica Federal. For this, it is enough to request the supply of a certificate that this is the first property acquired by the SFH.
It is very important to prove this information correctly, after all, the buyer is civilly and criminally liable for the veracity of the information provided.
When should property registration be done?
As you have seen, the registration of the property needs to be carried out to make the transfer of ownership of the property official and put it in your name. In general, it must be done within 30 days of signing the purchase and sale agreement.
In the case of financed purchase, the registration of the name of the new owner on the registration only takes place at the time of payment of the final balance. However, the information regarding the transaction is recorded in the deed.
Thus, after the settlement, the owner must complete the process of transferring and registering the property on his property.
It is essential to pay attention to the registration, as possible disputes or infringements are the responsibility of the legal owner of the property. Therefore, both those who buy and those who sell a property must be careful to regularize all documents and avoid problems.
How to register a property?
Registering a property can be seen as the last step in purchasing and transferring the property to your name. Therefore, there are several steps that need to be completed for the entire process to be done correctly.
Check out what they are below:
Care in buying the property
Before we talk about how to register the property, it is important to remember relevant care in the purchase process. It is up to the buyer to make sure that there are no liens and pending issues related to the property.
Knowing the property’s history and especially checking the settlement of IPTU and other frequent obligations can save you a lot of headaches in the future. After all, it avoids the risk of acquiring a good that has fiscal problems.
Documents for registration
After checking all the relevant aspects and deciding to purchase the property, the next step will be to sign the purchase and sale agreement. So, it is the step of registering the contract at the Notary Public’s Office and making the public deed.
After the steps mentioned, you will be able to take all the documents to the respective registry office to register the property in your name. In the end, you will have full and legal ownership of the property.
Some of the documents requested by the registries to carry out the deed and subsequent registration of the property are generally:
- Civil and criminal certificates from municipal or state bodies;
- Labor court certificate;
- Property registration;
- Property lien certificate;
- Certificate of Marketable Value;
- Copy of the IPTU guide;
- Denial of IPTU debts.
An important piece of information that should be given when it comes to buying a property is the cost to carry out the entire purchase and transfer process. Some of the central expenses are fees charged by the registry.
In addition, you need to pay municipal or state fees, such as ITBI. Values vary according to each location, but there is a general estimate that bureaucratic costs may correspond, on average, to 5% of the property’s value.
As an example, the registration of a property with a price established between R$ 276,100.01 and R$ 552,200.00, in the city of São Paulo, in 2020, would cost around R$ 2,389.34.
A property in a higher price range — worth between R$ 828,300.01 and R$ 1,104,400.00 — would have a cost of R$ 3,221.35 for registration in 2020.
The values for other cities in the country can be searched on this site.
Now you know what property registration is and how it works. So be sure to pay attention to it and other legal aspects when buying or selling a good!