The real estate market is broad and involves different options for negotiation, such as real estate exchange: a payment alternative that can bring advantages to both traders. This issue is especially relevant in difficult times to sell real estate, such as widespread economic crises – like the one that Brazil faced in mid-2015 and the one generated by the coronavirus pandemic.
This reading is essential for anyone who owns a property or intends to purchase one, because, in the following topics, we explain what exactly this exchange is, how it helps in the purchase of a property, when it is worth doing it and much more. Good reading!
What is real estate exchange and how does it work?
In general, the exchange is a type of business in which two parties exchange one or more goods simultaneously, which may be items of equivalent market value or with a tornado (additional payment). In the case of real estate exchange, the objects of the exchange will be commercial buildings, houses and apartments in the plant, under construction or ready, land or units intended for real estate development.
Imagine that an individual wants to buy an apartment, however, he will pay another part with land instead of using money, and the exchange is formalized by a contract. However, be aware that it is not enough that the properties have similar characteristics, it is necessary that they have equivalent values.
How does the real estate exchange help with the purchase of a new property?
The exchange is an advantageous alternative for those who intend to acquire a property in the short term, since the process is less bureaucratic, faster and easier than buying and selling. It is also ideal for those who already have a property and want to acquire another type of property, but do not have the capital necessary to do so.
For example, an owner who already has a property and wants to sell it in order to acquire another one can take advantage of the real estate exchange, instead of selling the property and then buying another one. There will be a divergence of values if he wishes to acquire a more valuable property, and, in that case, it is enough that he makes the payment of the difference.
When is it worthwhile to use this exchange?
To know when it pays to make the exchange, it is necessary to know the main benefits provided by this negotiation and see if it is advantageous for you at this moment.
The main advantage related to the economic concerns taxation. As the properties have equivalent values, there is no increase in the equity of the parties and, consequently, the Income Tax (IR) should not be applied. However, there is the application of this tax on the tornado, if any.
Speed and comfort
As the entire process is done in a single transaction, the time that the parties must wait to complete the negotiation is minimized. Another aspect that brings more speed to the negotiation is the fact that it is only necessary to identify a person interested in the exchange, instead of finding a buyer and a seller, which reduces the time taken in the search for people interested in the property.
There are exchange systems in which several individuals and legal entities are part of and offer exchange of properties between them. However, these systems have strict security rules, such as the requirement that the negotiation is transparent and that the property is properly paid, which brings greater protection to the parties.
In addition to the specific systems for exchanges, there are events that are created with the purpose of promoting this type of negotiation. They usually have a wide variety of land, properties completed or under construction, which means that anyone interested in swapping will not find it difficult to find a property that meets their needs.
How to exchange real estate in practice?
Although it is considered a faster and easier process, it is crucial to know the real estate exchange procedure in practice to guarantee the benefits listed and ensure more security.
Analyze the status of assets
The first step is to do a thorough research on the situation of the property, including a careful analysis of its documentation and certificates, so it is possible to know if there are any pending issues with tax, tax or other problems. We also recommend inspecting the property (even if it is a piece of land), in order to find out if its characteristics are in accordance with the contractor.
Know the types of exchange
There are only two types of exchanges: with or without makes (with fair value), and it is important to know exactly which is being negotiated in the contract. The fair value modality is more rare, as it is more difficult to find two properties with the same price – but it is possible that one of the parties will waive the payment to enjoy the IR exemption.
Both parties must prepare the documentation in advance to avoid postponing the contract. Among the main documents of the exchange agents are:
- identification documents (RG and CPF);
- proof of profession;
- birth certificate or marital status;
- proof of address;
- in the case of legal entities, it is important to present the articles of association and amendments, a simplified certificate issued by the Board of Trade with less than 30 days and documents from the managing partners.
As for the real estate documents, we list:
- certificate of registration and shares (or liens) of the property issued within 30 days by the Property Registry;
- proof of IPTU discharge;
- discharge of other fees, if any;
- ITR or IBAMA certificate, if the property is rural.
Observe the contract
All details of the contract must be studied to identify and correct clauses between the lines, ambiguities and others that may generate future barriers. The document must also contain complete data of the parties, address, delivery date and value of the properties, as well as the existence or not of a return, whether the goods will be returned to the original owners and when it will occur, among other information.
Seek professional assistance
Even if there is trust between the parties, it is essential that the entire process is done with the support of a trained professional – such as the real estate agent – to ensure that everything is in accordance with the law, clarify any doubts and avoid future problems.
There are still other precautions that must be taken when making the real estate exchange, such as understanding the reasons why the other party wants to make the exchange, knowing the fair price of the properties and checking their legal situations. But with the support of good professionals, it will be possible to have these issues more easily resolved.
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