What you should note in the real estate purchase and sale agreement

What you should note in the real estate purchase and sale agreement

Did you know that, for most people, the biggest accomplishment of their lives is the acquisition of a property? And no less. In addition to involving the savings of many years, the realization of the dream of homeownership involves a lot of research and high emotional burden.

Like everything in Brazil, buying a property involves a lot of bureaucracy, and the purchase and sale contract is just the first step for you to finally have a property in your name and be able to call it yours.

Continue reading this article and find out more about this important document!

The purchase and sale contract

Basically, the property purchase and sale contract is a preliminary, non-mandatory document, which formalizes the interest in the real estate transaction, establishing the obligations of each of the parties involved. Its main objective is to provide greater legal certainty on the terms agreed.

Through this contract – which can be drawn up in a notary office – the following are established:

  • the final value of the deal;
  • the conditions;
  • deadlines and forms of payment.

This document establishes the seller’s obligation to deliver the vacant property to the buyer, upon payment of a previously agreed amount.

To avoid future problems, it is recommended that the purchase and sale contract be produced by a lawyer. Be aware of the standardized models that some real estate agents have: in some cases, they do not address all existing needs.

The main documents in the real estate transaction

It is known the great bureaucracy when transferring the property of a property. In addition to the purchase and sale contract, there is also the public deed and property registration. All of these documents have different characteristics.

Due to the fact that this documentation is part of the real estate transaction, most Brazilians end up having doubts about the importance of each document. As already explained, the purchase and sale contract is a document that formalizes the real estate negotiation, formalizing the agreed terms.

The public deed, on the other hand, is an official document, mandatorily drawn up in a notary public, which validates the terms agreed between the parties involved in the negotiation. Through it, the negotiation becomes official, giving the buyer the right of possession. However, there is still no effective transfer of ownership of the asset.

The definitive transfer of ownership of the property occurs after the registration of Property is registered at the registry office.

Although it is possible to realize the importance of property registration, many people end up not making this document due to the expenses involved, which are in the order of 0.3% of the property’s value.

Therefore, they end up having only the purchase and sale contract. However, this is a big mistake, since without the registration of real estate there is no official transfer of ownership.

There is a consensus among experts in the field, who recommend that the buyer authenticate all documents in a notary public. In this way, he has legal certainty and avoids future headaches in the regularization of the acquired asset.

Main clauses of the purchase and sale contract

As already mentioned, it is recommended that in every real estate transaction there is a specific purchase and sale agreement that meets the particularities of each negotiation. Therefore, it is always a good idea to avoid using ready-made contract templates.

For you to know if your purchase and sale contract was well done, the main clauses that he must address are:

Stakeholder data

The first fundamental point in the property purchase and sale contract is the personal data of the buyer and seller. Cannot miss:

  • the full name;
  • the marital status;
  • nationality;
  • the profession;
  • the  document   identification (ID and CPF);
  • the full address of the residence.

Property description

As well as the buyer and seller data, a complete and detailed description of the property must be included. The recommendation of experts is that the contract has the same discrimination as the property registration contained in the Registry Office.

Value

Another essential clause in the property purchase and sale agreement is the combined amount, including the form and terms of payment. It is essential to indicate in the document whether to use cashier’s check, bank transfer or if the amount will be paid in cash.

Fines for delay

In order for the buyer to be protected in case of delays or problems in the delivery of the keys, it is necessary to include in the contract a clause for delay situations and, depending on the situation, until the purchase is revoked.

Buyer and seller must also negotiate, for example, who will be responsible for an eventual eviction from the residence.

Payment Dates

Another essential piece of information is the dates on which payments will be made. If it is in installments, the expiration date of each installment must be stated in the contract.

Vacancy

If the property is in use, it is necessary to include a clause that determines the deadline for eviction by the owner or tenants.

Other considerations

Is the property new or used?

The purchase and sale contract for new or used properties must contain information on the existence of financing. For the sale of units in the plant, the buyer must request a description of the property with all the information related to the finish used in the construction.

For used and occupied residences, it is necessary to include a clause that determines the deadline for the owner or tenants to leave the place.

What if there is a difference in the footage?

A difference in the size of the property can generate a claim in court, even if the error is less than 5% of the area of ​​the residence. Therefore, the contract must indicate which form will be used to correct any differences in relation to the property’s footage.

The main requirements of a property purchase and sale agreement are:

  • be well thought out;
  • have clear clauses;
  • leave no scope for different interpretations.

One way to ensure that there are no problems is to rely on the help of trusted professionals who work with this type of marketing.

In addition to the purchase and sale contract, it is necessary for the person who wishes to purchase a property to be attentive to other points of the transaction. If you want to realize your dream of homeownership through real estate financing, you need to know all the costs involved.

If you dream of purchasing your own home, be sure to read about the Total Effective Cost of a loan!