When making the purchase of a property, many believe that the contract and the deed are sufficient steps to carry out the property transfer. However, despite being part of the process, these documents alone do not guarantee the transfer. Registration is required. Understand more.
Many, when planning to buy a property in park view city think that the contract and the deed are sufficient to attest to the property transfer. However, in practice, the contract is the agreement that obliges both parties to honor their commitments, and the deed is what makes the transfer official. And the transfer of the property only happens, in fact, when the deed is registered in the real estate registry office.
How to transfer property?
For the purchase and sale of a property to be completed, it is necessary to go through the documentation process that leads to the transfer of ownership from one owner to another. The transfer of property is made through the public deed and, soon after, through its registration.
The deed of the property is the document that contains the process of transferring a property from one owner to another. This document needs to be drawn up in the notary’s office, signed by the parties and registered with the real estate registry office. It has legal value and determines who are the new owners of the property, proving the will of one or more people before a notary, responsible for the drawing up.
How to do the deed of the property?
To do the deed of the property you need a series of documents, such as:
- IPTU (Urban Land Tax);
- Updated property registration;
- Negative certificates of liens and shares;
- Certificate of registration in the Municipality, venal value and negative certificate of municipal debts of the property.
In the case of condominiums:
- Declaration signed by the liquidator and authenticated, stating that there are no outstanding debts. There must also be the minutes of the liquidator’s election.
- ITR (Rural Territorial Tax);
- CCIR (Rural Property Certificate or Certificate);
- Updated property registration;
- Negative certificates of liens and shares.
Seller documents (individual)
- Certified copy of the RG and CPF of all owners;
- Updated marriage certificate;
- Registered prenuptial agreement or of the Public Deed of prenuptial agreement;
- Profession of all owners and spouses;
- Optional, but ideal: Negative certificates with the IRS and labor courts.
If the purchase is made directly with a construction company or real estate company, the documents are:
- Consolidated Social Contract;
- RG and CPF of the managing partners;
- Registration with the CNPJ;
- Simplified Certificate of the Commercial Registry;
- Addresses and professions of the managing partners;
- Negative certificate of federal taxes;
- Negative certificate of social security contributions (INSS).
- Certified copy of the ID and CPF of the buyer and spouse;
- Registered prenuptial agreement;
- Profession and address of buyer and spouse.
Note: Although the spouse’s qualification is stated in the deed, he does not need to sign the deed. Only spouses of salespeople need to sign.
In addition to the documents mentioned above, there are others that are also needed. However, some of these are provided by the real estate registry office itself, such as the negative certificate of labor debts and other certificates.
To be sure, you should consult your city’s registry office. They will inform you which documents are required to draw up the deed of the property.
After making the deed, it is necessary to register it for the transfer of the property to occur. The deed must be registered with the real estate registry where the property is located. The registration of the deed changes the history of the property saying who its new owner is. After the registration is completed, if a new certificate is requested, the name of the new owner of the property will already appear on it.
What is the amount paid to make the deed?
The values vary according to the value range of the property, in addition to the venal value (determined by the city hall) or real value (real value of the negotiation). Each real estate registry has its table with the prices determined.
Altogether, bringing together the deed, its registration and the Tax on the transfer of real estate (ITBI), the total cost of transferring property is around 5% of the property’s value.
Tax on the transfer of real estate (ITBI)
ITBI is an important factor when it comes to property transfer. This tax is the first fee to be paid for the transfer of property. This is a percentage of the property’s market value, destined for the municipality. ITBI needs to be paid in a single installment. In case of delay, interest and fine may be generated.
If the property has not been purchased, but received by inheritance or donation, the new owner will pay the Transmission Tax “Causa Mortis” and Donation (ITCMD).
When to do the deed?
The ideal is to do the deed and register it with the real estate registry immediately, since it is a document that proves your ownership of the property. Even with the purchase and sale contract, it is only the deed that will guarantee that the property belongs to you.
What to do before buying a property?
Before purchasing a house, it is necessary to check if there is something wrong inside the house, such as infiltrations and other structural works. Also, check if the condominium and the property tax are up to date.
Then, it’s time to check how the documentation is doing, especially the real estate certificate from the Property Registry.
The mandatory documents of the property are: certificate of real liens from the Property Registry; certificate from the City Hall (IPTU and lease payment); certificates from the Public Finance Courts (property); declaration of discharge from the condominium and certificate from the Fire Department. The sellers’ mandatory documents include certificates from civil distributors; certificate from the Public Finance Courts (vendors); Federal Justice Certificate; interdiction and guardianship certificates and labor lawsuits certificate.
If everything is correct, you can already formalize the purchase, settling the Tax on Real Estate Transfer (ITBI), which is paid by the buyer, and marking the signing of the deed.
It is important to note that the deed, by itself, contains only an annotation of the purchase and sale commitment. The property will only be definitively transferred to the name of the new owner after the deed is registered with the General Property Registry (RGI).
According to the terms of paragraph 1 of article 1245 of the Civil Code, the transfer of property only happens after the registration of the deed of the property. Therefore, it is not only the deed that guarantees the transfer of the property, but its registration. If the deed is not registered, the seller remains the former owner of the property sold. If you are looking for the ideal property, it is also interesting to stay on top of matters involving the transfer of real estate. And, if you want to find your property more simply, we can help you!