purchase and sale 22 Jun, 2021

8 Key points to note before signing the purchase and sale contract

In general, the purchase and sale contract is the document by which the seller undertakes to transfer the domain of a certain asset to the buyer, in the price, term and other adjusted conditions. For the safety of both, the advice of a real estate agent consists of making the signature after analyzing and verifying the feasibility of the sale and the health of the property.  The elaboration of the balanced contract between the parties is also the responsibility of the real estate company, however, here are some tips on what you need to pay attention to before signing it:

1. Check your data and other details that are outlined in the clauses – remove any doubts that exist

Name, nationality, marital status, identification (n. Identity, CPF or CGC), and the address of the sellers and buyers must appear clearly. In addition to them, the location data, dimensions, special characteristics, property registration number and which registry office is registered, must also be meticulously compared.

2. Declaration of discharge of condominium quotas

Check, if necessary, for the existence of a clause citing the Declaration of the Receiver or Administrator, stating that the property is up to date with the payment of the condominium fees, when signing the deed or financing agreement of the property. If the tenure is on different dates, it must also be carried out in the same. If the declaration is given by the liquidator, it must be accompanied by the Minutes of the Assembly that elected him.

The property must be delivered to the buyer without restrictions of any kind, personal and/or legal (mortgage, pledge, among others).

3. Demand an inspection of the property – and this includes items pertaining to common areas (if any)

The purchase and sale contract is made on an ad corpus basis, that is, “just like this”, (check our real estate dictionary) so it is extremely important that at the time of signing, the buyer has already carried out the survey to ensure that the terms in the description attached to the contract referring to parking spaces, private and common areas, are in accordance with the reality of the property.

4. Be aware when it comes to installments of real estate acquired in the plant. It is important to check the correction and interest rates of the same

Talk to the professional who is assisting you and get the maximum explanations about the method used. If the property on the floor plan is your option, be prepared, as there are always corrections to the outstanding balance.

Property Purchase and Sale Agreement

5. Responsibility for payment of fees and additional expenses

In Minas Gerais, it is up to the owner to pay the brokerage expenses, and the buyer to pay the ITBI (transfer tax), deed, registration and other fees.

It is worth mentioning that the ITBI rate in Belo Horizonte – 3% of the value of the asset, is calculated according to the city hall’s assessment. The deed and registration vary according to the price range of the property.

6. Payment details and deposit account

It is important to pay attention to the clause that limits the date for depositing the deposit and other amounts after the signing of the Deed of Purchase and Sale and definitive possession of the property, as well as the account details to be made the deposit (Branch, Current Account, Bank and Check Number).

For financed properties, it is also necessary to have a clause that defines the deadline for the signing of the financing contract before the financial agent.

7. Final Deed and Property Registration

As stated in the article on Deed and Property Registration, the purchase and sale contract is the first formality of the process, however, only the deed and subsequent registration grant the buyer definitive possession of the property.

Therefore, to ensure both are involved, it is necessary to include the date for signing it , as well as the mandatory registration.

Recalling that in the case of financing, the contract issued by the banks replaces the deed.

8. Possession, Eviction and Fines

It is essential to state the date of vacancy of the property – people and objects – from the signing of the contract.

When we talk about contracts it means obligations, so if they are not fulfilled, it is common to determine some fines. In general, they are included in the event of termination, or in the event of a delay in delivery of the asset in situations where payment is made prior to possession.

Finally, it is important to emphasize that each negotiation has its particularities, being necessary the detailed analysis of each clause verifying the information and obligations of all involved. Therefore, if there is still any doubt or suspicion, do not sign, always seek to clarify with the real estate professional the nuances of each negotiation.

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