Have you ever heard of property registration fees? Check in this post everything about this extra value when buying a property in capital smart city islamabad .
Real estate transactions represent high costs that go far beyond the value of the property itself. This is because, in Brazil, there are a series of laws to regulate a process of selling real estate. They involve everything from inventory purchase and sale contracts to deeds and property registration fees. This is because, when a person buys a property relying only on the purchase and sale contract, he has possession of the residence, but is not the owner.
Thus, in order to be considered a property owner, the property must be registered with a notary. This process, like many others, involves the payment of an amount, known as a property registration fee. Therefore, it is very important that when buying a property, the buyer takes into account the costs that go beyond the value of the house. In São Paulo, for example, the purchase of a property of R $ 700,000.00 can mean indirect costs of up to R $ 19,000.00, or 2.77% of the value of the property.
Among all the costs, the property registration fee may be the one that generates more doubts for buyers. So, check out what this value is, how it is calculated and how to make your payment.
What is the property registration fee?
When buying a property, in addition to the purchase and sale contract, it is necessary to provide the deed and registration of the property. For that second, it is necessary that after the deed is drawn up, it must be registered in a notary’s office. In this way, your deed will have legal value and will assure you as the owner of the residence. However, this process involves the payment of the so-called property registration fee.
This amount is tabulated and each state has a different form of collection. To access the tables, simply access the website of the Instituto de RegistroImobiliário do Brasil.
How to Calculate Property Registration Fee
Calculating the property registration fee is a relatively simple task. This value is tabulated and can be consulted on the IRIB website. However, an important point to note is that the charge varies from state to state and also according to the value of the property.
In addition, it is important to remember that these amounts are charged based on the property’s market value. This means that the registration fee will not necessarily be proportional to the amount that will be paid for the property. This is because the venal value is the price estimated by the government, calculated based on data from the Property Registry Certificate.
How to register property?
Property registration can only be carried out after payment of the Property Transfer Tax (ITBI). This is a municipal tax paid on the acquisition of the property. After that, it is necessary to obtain the deed and go to a Real Estate Registry, pay the property registration fee and authenticate the document. In addition, some documents need to be submitted in this process.
- Copies of RG and CPF;
- Marriage certificate (if any)
- Proof of address and profession
- Negative certificates from the labor courts and the IRS
- Certified copies of RG and CPF;
- Marriage certificate (if any);
- Proof of address and profession.
The difference between deed and property registration
There are still many doubts about the difference between the deed and the property registration. However, we are talking about very different documents. Firstly, the deed has the function of negotiation. It contains all relevant information such as which property is part of the transaction, who are the parties involved, the price of the property, the form of payment, the date of handing over the keys, among other topics.
Thus, the deed has a record of all the details agreed between seller and buyer. Thus, it creates a skillful title for the real estate registry to formalize the negotiation obligations.
In contrast, the property registry is the document that contains the property’s history. This is achieved by registering the property. In addition, it effectively transfers the buyer’s responsibilities, making him responsible for the house or apartment before the law. That is why it is so important that before paying the property registration fee, the buyer must make sure that there are no debts for the property, such as condominium fees, for example, after the transfer of the property he will be responsible for its discharge.
The property registration fee for those who purchase the first property
The dream of home ownership is the dream of many people and the values that go beyond the price of the property itself can scare those looking for the first property. However, the good news is that for those who are purchasing their first property you can get some discounted rates.
Guaranteed by Law No. 6,941 / 81, it determines that the buyer has the right to obtain 50% of the costs related to regularization at the registry office. However, there are requirements for this discount to be obtained, such as the purchase being completed by the Housing Finance System (SFH).
Thus, in order to obtain a reduction in the registration and deed fee, it is necessary to declare that you are acquiring your first property through SFH. Most of the time, this can be achieved through a certificate provided by the bank. Thus, it is enough to present it in a registry office and discounts on the first property are granted on the spot. Some states in the country require other supporting documents and it is important to verify this with the financial institution. It is worth mentioning that this documentation must be provided before paying any fees.
Costs that go beyond the value of the property
Purchasing a property requires a lot of investment on the part of the buyer. Thus, it is always important to remember the costs of this enterprise that go beyond the property value. Thus, it is always important to have these values when choosing your property and not using all your reserves in the value of the property.
Also, remember that in addition to the property registration fee, you also need to spend on notarization, issuing a property certificate in addition to the change itself and new furniture if necessary. Another important point is that if you opt for financing by Caixa, a deposit of 5% of the documentation amount is required. With that in mind, look for properties whose entry price does not match all of your savings. For this, you can use the Casa MineiraImóveis portal and with our filters define the value and characteristics of what you are looking for.