Whether for a property acquired through a real estate financing or through a spot negotiation, a purchase and sale contract is essential for the buyer, seller and even for the broker who intermediated this commercial transaction.
This document serves to generate more security, trust, transparency and credibility among all parties involved in the business.
A self-employed broker or a professional connected to a real estate agency must have knowledge of all the essential items in a property purchase and sale contract.
This expertise will give your client more peace of mind at the time of closing the deal, and may even lead to a quicker decision on the part of the buyer.
Do you want to understand what items cannot be missing from a private property purchase and sale contract? We at Sky Marketing have brought you this post to understand more.
What is a purchase and sale contract?
A purchase and sale contract are the document that sets out the commitments between the parties involved in a sale and purchase of property.
Under the simple purchase and sale agreement, a party undertakes to transfer ownership of one property to another upon payment, usually in cash, determined by mutual agreement.
The safest thing is that the preparation of this document is carried out by a lawyer, so that all items determined by law are present. But this does not exempt the broker from having knowledge of the essential items, precisely to ensure the guarantee of ownership of the good by the buyer and receipt of the amounts stipulated by the seller.
It is also through the purchase and sale contract that the broker will have the declared business values, so that the calculations for the payment of the commission for the transaction can be carried out. Which is why taj residencia housing project make sure to have all the proper documents beforehand.
Therefore, pay attention to all items, because although there is a model for the purchase and sale of land or built property, which provides data such as personal documentation, property description, values, property delivery and payment terms, and even debts; the document must be prepared based on the particularities of each negotiation.
But one aspect in the elaboration of the document is fundamental: all clauses must be very clear and objective.
How to make a purchase and sale contract?
When closing the deal, you need to know that in a purchase and sale contract template there are items that cannot be excluded.
In addition, there are also certain differences between the used property purchase and sale contract model and for the purchase of units in the plant.
Used purchase and sale contract
- Personal data of owners and buyers (RG, CPF, marital status, existence of prenuptial agreement);
- Property description (useful area, common area, parking spaces, location, and other information contained in the Registry), with reference to its registration or Transcript number with the Real Estate Registry Office, as well as the Registration number Municipal;
- Date of the deed;
- Price or total value of the traded good;
- Method and place of payment;
- Index and frequency of readjustment, if applicable;
- Down payment, due dates of the following installments, fines, conditions for effecting payment installments;
- Existence of financing;
- Deadline for delivery, by the seller, of a fully itemized list of documentation;
- Deadline for delivery of the property, empty of things and people, or special understandings between the parties;
- Provision for the delivery of keys and imposition of possession (provisional or definitive);
- Conditions foreseen for possible termination;
- Any reservations of knowledge and agreement of the parties plant unit
- Deadline for the start and delivery of the work (including late payment fine);
- Total value of the property and payment or financing terms;
- Data of the developer and qualification of its representatives;
- Index and periodicity of readjustment, ways of correcting the balance and installments;
- Payment place;
- Signal value (input);
- Values to be paid upon delivery of keys;
- Possible cases of termination, with the conditions for returning the amounts in case of default;
- Grace period (period in which the developer can give up the project);
- Penalties for late payment of installments;
- Location and characteristics of the property transacted;
- Total footage (private area + common area + garage area) when ready;
- Descriptive memorial with all finishing information relevant to the property, when it is ready;
- Number of parking spaces.
How to make a purchase and sale agreement: property documents
In this purchase and sale document, it is also necessary to pay attention to the documentation that is required for the purchase and sale contract for land or property already built that is being negotiated:
- Certified copy of the definitive deed in the name of the sellers, registered at the Real Estate Registry Office;
- Twenty-year negative certificate of real liens. This document shows the property’s history over the last 20 years;
- Tax clearance certificate, which is issued by the city hall
- -Debt clearance certificate for condominium debts;
- Certified copy of the IPTU of the year. The document is issued by the city;
- Registration of the construction with the Real Estate Registry Office;
- Property plan approved by the city;
- Registration of repossession actions and disposals. The document is issued by the Real Estate Registry Office.
Property in inventory
If the property is in inventories, it should be noted that more items will be included in the purchase and sale document:
- Authorization for sale by the Public Ministry if the property is owned by a minor person;
- Twenty-year negative certificate of real liens;
- Certified copy of the original owner’s death certificate;
- Certified copy of the formal sharing.
Promise to buy and sell
Although it is not a mandatory document, when a property is being negotiated, there is also the possibility of carrying out a preliminary purchase and sale agreement or a purchase and sale commitment, just like in Capital Smart City.
This document prior to the actual purchase and sale agreement for property in installments or with cash amounts is provided for in articles 462 to 466 and of the Civil Code.
Many sellers or buyers may demand the document to have guarantees that what is being offered is actually going to be delivered, be it the property or the payment.
In fact, this feature is one more guarantee: for the buyer, who cannot be absolutely sure when an owner, when advertising a property, is actually in possession of what is being promised; and for the seller, in relation to payment methods.
In this declaration of purchase and sale, all clauses of interests of both parties must be well observed as well. Therefore, it is also essential to receive legal advice before searching the internet for a purchase and sale contract model or a purchase and sale promise.
But if you want to have a purchase and sale contract model of this type, check the key items:
- Payment method (down payment, installments, cash, check, deposit, transfers, etc.);
- Deadline for payment;
- Deadline for delivery of the property;
- Prohibition of repentance under penalty of sanctions
How much does a purchase and sale contract at the notary’s office cost?
The bureaucracy involved in real estate transactions goes far beyond the property values themselves.
The certificates alone can cost an average of Rs. 1,800, according to the tables of the notary offices of each municipality.
But there is also a tax that is essential for the buyer to know that it exists: it is the ITBI (Real Estate Transmission Tax).
Despite being one more value that the buyer must bear, the ITBI is important because it guarantees all the necessary records with the competent authorities.
Generally, this tax is 3% on the value of the property declared to the city in the deed. It can be either the market value or the actual value made in the negotiation of the property purchase and sale contract.
But if the property is financed by the Housing Finance System (SFH), this value may be only 0.5% of the amount actually financed.
Did you realize that just knowing how to make a property purchase and sale agreement from a single model may not be enough? It is necessary to know many other particularities that involve this elaboration, in addition to being very careful and attentive when signing the document.