The public deed, without a doubt, is one of the main documents that must be obtained when purchasing a property. In fact, signing such a deed can be considered one of the great steps that anyone can take in life. After all, who has never dreamed of having their own house or apartment and never having to spend money on rent again?
Generally, those looking for a property to purchase are concerned with obtaining a letter of credit or financing, being able to find a house or apartment in a good location and, of course, a good value for money. However, in Brazil we also need to always be aware of the countless bureaucracies to be fulfilled when purchasing a property.
And one of the key documents that the owner of a property must provide is the public deed, as it is from there that the property will be registered. And for you who have doubts on this subject, Blue World city have explained the 5 main points that it is important to know. Check out!
1. After all, what is a property deed?
The public deed of purchase and sale of property consists of a document whose function is to formalize the agreement made between people interested in the purchase and sale of a property. In other words, it is nothing more than a document that aims to ensure greater legal certainty when the sale of a property occurs.
The professional responsible for preparing the property deed is the notary, who works in the Notary Public Notary’s Office of any Brazilian municipality. It is also good to know that the public deed is not made only in the case of property acquisition.
On the contrary, it is a document that is also required in several situations, such as recognition of paternity, divorces and consensual separations and even the recognition of stable unions.
Those who intend to request the deed must also be aware of the list of documents that must be presented. Among the main ones, we highlight the following:
- personal documents of all persons involved in the transaction, such as ID, CPF, proof of address and marital status;
- ownership certificate, which must be current;
- information about the IPTU, provided by the municipality where the property is located;
- proof of tax collection (ITBI / ITMCD);
- property tax certificates;
- if the transaction involves a Legal Entity, it is necessary to be sure about the specific documents that are necessary to present as well.
2. Should all property purchases be formalized by means of a deed?
It is not necessary for every purchase and sale of real estate to be formalized by a deed. An example is financed properties, where the deed is replaced by the contract made by the bank.
However, it is good to understand that, in general, the Brazilian legislation determines that all the purchase and sale of property with value above 30 minimum wages must be made through the elaboration of a deed.
However, as with many rules, there are some exceptions to note. This is the case of real estate financing and also of contracts made by the Union or the State related to rural public lands.
Although the declaration does not need to be made by a lawyer, in case of doubts related to documentation and bureaucracy, the ideal is always to look for a professional in this area. So it is possible to make sure that everything is being done according to the legislation.
3. Can I use this document to prove ownership of a property?
No. The deed of property is only for the purpose of proving the real estate transaction carried out between the parties. Thus, the buyer must take care of obtaining the deed in the registration register of the property as soon as he has the deed.
It is only after the deed is registered with the property registry that the buyer officially becomes the owner. Therefore, the document that serves to prove ownership of the property is the Property Registry.
In fact, it is very common for people to think that a property purchase and sale contract is enough to prove ownership of the property. However, the document valid for this purpose is the one issued by the Real Estate Registry Office, which must be provided after the preparation of the public deed.
4. What is the difference between public deed and property registration?
The public deed exists to formalize the purchase and sale of a property and make it public, so much so that any citizen has the right to consult the deed for the purchase and sale of a property at the Real Estate Registry Office.
The deed contains information about the terms agreed for the real estate transaction, such as the definition of what is being sold, the combined value, who are the parties involved, the date of purchase, the form of payment etc.
The property registry, in turn, contains the entire history of the property. Through it it is possible to consult who were the previous owners, the changes and improvements suffered by the property, among other information.
In practice, the deed is the instrument that makes public the intention to buy and sell a property of all parties involved in the business. And the document is made to ensure that all procedures are carried out in accordance with the law. Then, the registration is made, which means the transfer of final ownership of the property in question.
Recalling that in the case of financed properties, the registration will only be made after all installments of the credit have been paid off. When everything is paid, the bank itself will issue a document, which must be taken to the notary for the owner to obtain the registration.
5. How much does the property deed cost?
The value of the deed varies from state to state. According to the official table of the State of São Paulo , for a property with a sale value of R $ 514,000.00, for example, the price charged by the notary for the production of the public deed is R $ 3,630.52.
When writing the property, the owner must be prepared for another expense: the payment of the ITBI, which is made at the time of signing the deed. Its value is defined by the municipality and, in general, varies between 2% and 4%. In the city of São Paulo, ITBI is 2% of the value of the property.
As you can see, in addition to the property deed, there are several details that involve the acquisition of this very important asset. To make this process easier and safer for the buyer, it is a good idea to rely on the help of a professional specializing in the real estate market whenever necessary.