Compra de casa: O que devo saber sobre a escritura?

Buying a house: What should I know about the deed?

Are you in the process of buying a house and the deed is approaching? Understand what this moment represents, what you have to pay, and which documents you need to take with you so that everything goes smoothly on the contract signing.

08 Nov 20234 min

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Buying a house using a housing loan can be costly and, after paying all the necessary charges with the loan and the deed, it is normal for the wallet to shrink. If you need extra financing to help with renovations or repay the loan in the early stages, rely on the assistance of credit intermediaries from Poupança no Minuto. To anticipate what is coming, learn how a deed works next.

What does writing represent in the buying and selling of a house?  

A public deed of a property represents a legal act related to the realization of the purchase/sale of a house.

At this moment is when the final contract of the deal between the buyer and the seller of the property is signed. Both parties must be present. But note that this legal document must be signed in the presence of a notary or legal representative.

The deed can be executed in a Notary Office, in a Land Registry Office or at a Casa Pronta counter (a State service for matters related to the buying and selling of real estate).

What is paid in the deed?

In real estate transactions it is necessary to pay some fees, such as the amount for the Casa Pronta service or notaries (which may vary).  

The cost of making a public deed at a Casa Pronta counter also depends on whether the property is being acquired through own capital or bank financing. In other words, if you do not use credit, you can pay from 375 euros for the deed in this service, and if you use housing credit, the amount is 700 euros.

Then, it is in the deed that we pay the taxes related to the purchase of a property: the Municipal Tax on Onerous Property Transactions (IMT) and the Stamp Duty (IS).

The IMT value, charged by the State, varies according to factors such as the location, type, and purpose of the property, and the IS value corresponds to 0.8% of the property purchase price.

What documents are required for the deed?

In order to formalize a deed, some mandatory documents are required to be presented, concerning the parties involved in the process and the property.

About the participants, it is necessary to present: 

  • The seller, buyer, and, if applicable, guarantors' identification documents; 
  • Proof of tax settlement or a statement proving exemption from IMT.

And about the property, it is necessary to present: 

  • Land register certificate, with or without description, and proof of legitimacy of the seller;  
  • Property tax ledger of property;
  • If it is an urban building, a habitability/occupation license (or proof of exemption);  
  • Technical specifications of the housing; 
  • Declaration of no debt of condo;  
  • Announcement of preference rights on the property/participants/transaction and amount.  

And once the deed is completed and the related costs paid, the house is yours... you can now move into your new property! But be aware that the expenses may not end here. Having a turnkey property may involve additional costs.

Pay attention to future costs, such as the amount to pay for condominium (if applicable), as well as the Municipal Property Tax (IMI) that must be paid annually. However, this tax also entitles specific cases to exemption.

Therefore, you should always check in advance which costs apply to your case or not.  

And if you are not satisfied with the property, you may also need to do renovations ... so, if you need extra financing , seek help to have the best possible credit conditions.

Contact the credit intermediaries of Poupança no Minuto so you don't have to worry about more bureaucracies, and continue the dream of having your perfect property!  

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