The real estate transfer is the possibility to port the financing of a property from one buyer to another. That is, when a payment contract has been made between you and a bank financial institution, but it is no longer in your interest for any personal reason, it can be passed on to another person who wants to pay it off and keep the property.
With the growing increase in the demand for real estate, whether for investment, as rent or resale, or for own use, the value of this property has increased and, with that, prices as well. To fulfill this desire to acquire a property, many resort to financing it.
Do you want to better understand how real estate transfer works and how it can help you? Continue with this article!
What is real estate transfer?
The real estate transfer is the resale of your home , apartment or property financing that you were purchasing for a new buyer. This allows the debt to change ownership, with the prior approval of the financial institution in which it was assumed.
Since most financing lasts a long time, such as 20 years, it is common for owners to move and need to transfer the property before this term ends and they are, in fact, owners. Thus, there are two possibilities, either the buyer makes the settlement of the property with the bank, or makes the real estate transfer. Since discharge is usually high and requires the remainder of the total payment, it is common for most people to opt for real estate transfers.
When can it be done?
The transfer can be done when you are dissatisfied with the current payment, for some reason your income has decreased and this financing no longer fits in the new budget, interest rates in other banks are lower or with more attractive installments, which work better in your financial reality.
The criteria are that the clauses of your financing contract allow for the transfer of real estate and that the interested party agrees with the previously fixed contract. It is very important that everyone is aware and in agreement with the pre-set conditions. A very relevant point is that the property still needs to be financing, that is, it is not paid off. Otherwise, what needs to be done is the process of buying and selling property, which requires registration of the public deed, etc.
Which parties are involved?
In addition to those looking for this facilitation – the party that initially assumed the financing and needs to pay for it – it is also necessary that the other party – that is going to buy this financing – agree with the purchase. In addition, it must also be in accordance with the other clauses of the financing contract made with the bank.
The bank where the financing was made must also agree to this resale . In addition, it must have been permitted by the contract that the funder signed. The parties must also agree with each other on how the previous installments will be paid.
What are the necessary steps?
The steps of this detailed transaction are important so that nothing is overlooked along the way.
The first step is to find out if the contract of the property from which you intend to make the real estate transfer authorizes this transaction. Most banks allow this transfer to be made, after all, they know the market conditions and know that it is worth much more to allow the transfer than to lose a customer – who, in case of financing, would be stuck to the property until the debt is paid off.
Buyer of the property and agreement of the parties
Finding a buyer is the second step in real estate transfer. To find people who have the profile to suit what you expect, advertising a property with its conditions of use and sale is a good way to find a qualified audience.
Once the interested party agrees with the purchase and passes the bank analysis , the former owners of the property need to agree with them on the payment of the previous installments, already paid to the bank.
This payment can be made in cash or even in an agreement with a movable or immovable asset, in short, as the parties prefer. This negotiation also needs to be very clear and with pre-established terms in common agreement so that they do not generate future problems.
Credit and property analysis
After the parties make their pre-contract, it is necessary that the bank receives all documents from the new owner of the property and does the credit analysis . In addition to being interested, the new buyer must also pass the bank’s financial credit assessment.
After all, he will be the new debtor to that institution. This financial check is similar or identical to that made with the first buyer, who will now make the real estate transfer.
Now, it is recommended that the parties carry out the analysis of the property with an expert appointed by the bank. The intention is to avoid fraud and the current value of the property to be determined. With the correct price of the property agreed between the parties, it is necessary to make the declaration of this property financed to the bank. Thus, the rates and other amounts incurred are duly clear in the new financing.
Finalization of documents
With all of the above completed, it is time to complete the signing of the new contract. It must be done with both parties present at the registry and does not change the owner of the property, which is the bank, until the financing is paid off.
Finally, when the former financier delivers his contract to the bank and discharges the obligation, the fees and taxes due are collected. Then, the new registration is registered.
Benefits of real estate onlending
The benefits of making a real estate transfer are numerous. In addition to allowing a change with more tranquility, the value can be combined with the other party, including being used to help in this process. Furthermore, not being permanently linked to a property against the will and being able to follow life and dreams is a freedom that real estate transfer can bring.
The transfer of real estate, when agreed in the contract and by mutual agreement between the parties, can be very beneficial for your plans for a new house in lahore smart city, or for any change that was not planned. However, it is important that you have expert help to avoid errors and delays in the process.
Trisul monitors all stages of real estate transfer. Our advisory is responsible from the presentation of the proposal on which bank to choose to follow the contract until the final stages of registration, offering more agility and security.