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Property contract registration: why is it so important for your negotiation? 

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If you’re about to buy your new property, you probably already know that you have to go through important steps that formalize and give legitimacy to the transaction, right? 

At this point, registering the property contract is essential to ensure legal certainty for the process and reduce risks both for you, who are buying, and for those who sell it. 

Do you want to know what are the other reasons why registration is so important and how to make your bureaucratic process? Take a look at this article and find out more! 

What is it and what is the importance of registering a property contract? 

First of all, it’s necessary to understand that the registration of the property contract is not a title or document in itself, but the action of registering the purchase and sale contract of the property in a notary. 

When you buy a new property, house or apartment, you must formalize the transaction at a notary as a way to ensure that the content of the document becomes undisputed. 

In other words, the registration of the property contract ensures that the information described in the document is protected by law. This ensures compliance with rights and duties throughout the process of buying and selling the property. 

Thus, the document must be prepared in a way that includes the necessary clauses with all the rights and duties of both parties involved, and its registration makes the property serve as legal evidence in the event of any disagreement. 

How to register a contract for the purchase and sale of real estate in a notary? 

It’s very important to remember that the registration of the property contract has no legal value as a transfer of property to the buyer’s name. In fact, the new ownership of the property will only be considered transferred when the Public Deed is taken to the responsible Real Estate Registry to update the registration. 

To register the property contract, it is necessary to pay bank fees and taxes, such as the Property Transfer Tax. 

Then, it’s necessary to take the contract to the Real Estate Registry Office regarding the location of the property and, over there, a new fee must be paid referring to the annotation of the information on the registration of the property. 

If this is your first residential property – in cash or financed through the Housing Financial System – Brazilian Law nº 6.015/73 guarantees a discount when paying the fee. 

With the fees paid, it is essential to have the signature notarized to validate the registration of this title registered at the notary. 

Once registration is complete, in the case of real estate financing, it’s necessary to send the registered contract and the updated property registration number to the bank so that the institution can release the money to the seller. Thus, the process will be completed! 

This is a process that can take up to 30 days, but in the state of São Paulo, it takes approximately 15 consecutive days. 

What are the documents required to register the contract at the notary? 

Besides the property contract itself, it’s necessary to provide a series of other important documents to carry out the entire procedure. For this, separate the roles of the property, the buyer and the seller! 

Below, we’ve prepared a list of each of these documents to make your journey easier! 

Individual Sellers: 

  • Official ID and Social Security Number, including husbands’ and wives’; 
  • Marriage Certificate (if previously married); 
  • Registered antenuptial agreement, if any; 
  • Address and profession information. 

For Legal Entity Sellers: 

  • Articles of association or articles of incorporation, last amendment and alteration in which there is a change in the board of directors; 
  • Joint Certificate of Debts with the Federal Revenue Service; 
  • National Registry of Legal Entities number. 
  • ID, Social Security Number, profession and residence of the director, partner or attorney-in-fact; 
  • Board of Trade certificate; 
  • Negative Certificate of Debts with the National Institute of Social Security. 

For buyers: 

  • original ID and Social Security Number (including husbands/wives); 
  • Marriage Certificate, if you were already married; 
  • Registered antenuptial agreement, if any; 
  • Address and profession information. 

What is the value to register the property contract? 

The registration value of the real estate contract can change according to the state. They are established by law from year to year, according to the price range of the property. 

Normally, the registration of the property contract corresponds to approximately between 1% and 5% of the sale value of the property, in addition to fees and taxes that must be paid before registration. 

Have all the information you need when buying a new property! 

Did you just see how the process of buying a new property can present different bureaucratic procedures? Therefore, it’s important to inform yourself about all of them to ensure a safe and worry-free purchase! 

Here at “De Portas Abertas” you will find all the information you need to have everything at your fingertips! Keep reading and find out about real estate market trends and news.