Real estate development: know what it is and how it works!

Real estate development

Many people consider the real estate market to be the best segment to make investments. Real estate development can be one of those options when investing your money. This type of negotiation allows you to plan a real estate project and develop all the steps to carry it out in the best way.

The real estate development offers several advantages to the consumer, among them, the security when acquiring a new property and the certainty that the project is being executed according to the current legislation. Therefore, for those who want to buy a property in the future, it is interesting to know the possibilities of real estate development.

Are you interested in the subject? In this post, we will talk a little more about what it is and how this type of investment works. Follow us!

What is real estate development?

The operation known as real estate development is regulated by Law No. 4,591 / 64, and provides for the construction of one or more buildings with autonomous units that can still be sold at the plant, that is, under construction. The incorporation of a property in a land also happens when a company carries out a work within the land that belongs to someone else.

This type of procedure is quite complex and bureaucratic, due to issues related to the activities of the developer, in addition to the long list of documents that must be presented at the Registry of Real Estate. As the real estate development takes time to formalize, it is necessary to be attentive and properly separate all this documentation, avoiding further extending this period.

Real estate development x Construction Company

In the real estate development process, there are three main characters: the land owner, the construction company and the developer. The latter works together with the other two and sells the units. In addition, the developer has the role of researching to assess the economic viability of a project and entering into a partnership with the construction companies. For this reason, it is common for developers to hire builders to carry out their works.

In these cases, the purpose for which the property is under construction does not matter, and both residential and commercial units can be marketed. The person responsible for the legal delivery of the properties is the real estate developer. It is he who delivers the finished work using rules, deadlines and previously agreed values.

The construction company, on the other hand, is responsible for the civil construction of the projects, from the hiring of labor to the execution of activities. It is she who is in charge of preparing the projects, buying the necessary materials and delivering, on the scheduled date, the completed project. The construction company is responsible for the work, but is not legally responsible for the project as a whole.

Therefore, while the developer is working on the commercialization of properties, making projects feasible, studying and analyzing the land, in addition to verifying some physical aspects of the project. The construction company, on the other hand, is responsible for the entire development of the work.

How does the taxation of a real estate development work?

One of the main objectives of real estate development is to provide security for all parties involved in the process, especially when it comes to the characteristics of the properties, technical conditions of the project and the suitability of the developer. In general, developers identify and negotiate land, offering autonomous units as payment and selling the others.

Therefore, the incorporation of real estate by law is an activity carried out with the purpose of promoting construction, in order to partially or totally dispose of the autonomous units of buildings, or group of enterprises. Thus, the developers negotiate the land with the owners and place the autonomous units as payment for the use of the space.

Achieve more real estate sales through “referrals”


What documentation is required in this process?

The real estate development process is long and full of bureaucracy. At the time of carrying out this procedure, several documents are necessary and must be presented at the Real Estate Registry Office to formalize the transaction, they are:

  • certified copy of the Purchase Title of the property
  • natural person: personal identification documents of the landowner;
  • land deed or title deed;
  • negative certificates: Labor Courts, Federal Revenue and Electoral Courts;
  • negative certificate of municipal taxes;
  • negative certificate from the State Secretariat and State Justice;
  • CND – Debt Clearance Certificate;
  • negative certificate of protest of titles;
  • negative certificate of liens and shares of the real estate registry;
  • history of property titles
  • architectural design approved by the competent authorities;
  • tables detailing the specifics of the work;
  • building permit;
  • report with technical descriptions of the garage;
  • declaration on the 180-day grace period for the project;
  • detailing the ideal fractions of the land of each autonomous unit;
  • assessment of the overall cost of the work;
  • calculation of building areas;
  • certificate of financial standing;
  • assessment of the overall cost of the work.

The real estate development process may take a while to complete, as it involves submitting several documents to the Registry. Therefore, it is important to be attentive to all necessary documentation, avoiding delays and prolonging the completion of the procedure.

In addition, all the incorporator’s certificates must be taken in the city of residence, up to 90 days before entering the process. In cases where the landowner is not the developer, it is necessary that he grants powers to the developer to proceed with the transaction.

How to choose the best real estate development service?

Currently, there are several options for real estate development proposals on the market. Therefore, it is necessary to be attentive to analyze the possibilities and choose the one that best fits your conditions and demands. Do extensive research on the developer or construction company that will provide the service, looking on the internet for projects already carried out by the company and their results.

Knowing about the reputation and reliability of the developer is also essential, so find out how it relates to the people who acquire your projects. Another important point is to check the region where the project will be built. Assess the existence of essential businesses in the neighborhood, such as pharmacies and supermarkets, and talk to neighbors about safety and noise issues. These small precautions are able to avoid future disorders and a lot of headaches.

Therefore, through real estate development, it is possible to acquire properties still in the plant, valuing your investment even more. For this, stay attentive to all the details, separate the documentation in advance and count on trained professionals to guide and develop the process. Invest safely and enjoy all the benefits of buying a property this way.

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