Costs of buying office space, three properties

EXAMPLE ONLY , EACH DEAL ” CASE BY CASE”

Let us remember that we are buying THREE PROPERTIES, for notary’s consideration.
We are considering a deal closed for a total of R$ 1.800.000,00
1 – PAYING the PROPERTY TRANSFER TAX (ITBI) (2%)
 
We should start processing the Property Tax by when due diligence ends.  This takes around 15 days to do.
ITBI is calculated NOW (City Appraisal for this example is currently  R$  2.745.893,00 for the three properties together) 2% =  R$ 54.917,86  (this value is good for the day before the deal, it can be adjusted accordingly to the day the city received payment (they could, hypothetically, change that value, for more or less, but its NOT COMMON).
The expenses to process the ITBI (expeditors fees, etc) are still  at R$ 3.150,00.
 
2 – OBTAINING THE CERTIFICATES FOR THE THREE PROPERTIES
 
As part of the Due Dilligence procedure, we must obtain all the legally required certificates because we could not buy a property  without knowing if it was fit to be purchased. However, some certificates are valid for 1 month only (often there is need to obtain them twice for the same transaction)   These certificates that will need to be obtained will cost exactly R$ 7.188,00,including the expeditor’s fees and government costs.  It is possible that during the Due Dilligence period we need to obtain them more than once (because we have to check monthly if things are still OK before we buy, something common in long negotiations, as you know.
 
3 – DRAFT THE PUBLIC DEEDS OF PURCHASE AND SALE
 
That will be done by LAWYER, starting when we receive buyer OK.  No costs are involved, as they are covered by lawyer fees.  
 
Other costs that we can expect and need to be paid:
 
4 – DEEDS NOTARY – TO BE PAID TO THE 24th NOTARY FOR THE DEED OF PURCHASE AND SALE OF THE PROPERTIES  BEING SOLD   (” Cartório de Notas” )
The properties being sold are 3, and the value is now a variable considering the number of properties and city appraisal for such properties.
ESTIMATED AT R$ 23.258,00
(Attention:  This is connected to the City Appraisal Value – cited on item “1”)
5 – REAL ESTATE NOTARY – TO BE PAID TO THE 7th PROPERTY NOTARY  TO REGISTER THE ABOVE CITED DEEDS IN THE REAL ESTATE NOTARY (” Ofício de Registro de Imóveis”)  value is  a variable considering the number of properties and city appraisal for such properties.
ESTIMATED AT R$ 27.758,90
(Attention:  This is connected to the City Appraisal Value – cited on item “1”)
6 – LEGAL FEES – SC OFFICE
Our negotiated fee is 1%, flat rate for properties valued at over 1 million reais. That is, R$ 18.000,00.
 
7 -brokers ‘S SUCCESS FEES 
 fees are 0,85% = R$ 15.300,00
So, we will need to pay:
1 – R$ 54.917,86 – ITBI TAX – PROPERTY TRANSFER
2 – R$ 3.150,00 – EXPEDITORS FEES, ABOVE
3 – R$ 7.188,00 –  CERTIFICATES
4 – R$ 23.258,00 – TO BE PAID TO NOTARY for the 3 deeds of purchase.
5 – R$ 27.758,90 – TO BE PAID TO REAL ESTATE NOTARY for registring the 3 deeds.
6 – R$ 18.000,00 – LEGAL FEES
7 – R$ 15.300,00  – GIDI’s SUCCESS FEES
TOTAL: R$ 149.571,86

 

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