COSTS OF BUYING SMALL APARTMENT ZONA SUL, SEP 2014
We are considering below a deal closed for R$ 950.000,00.
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 tax at 2% of SALE PRICE, because CITY appraisal was low, at R$ 465.290,33) = R$ 19.000,00 (this value is good for today, 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) will be R$ 2.150,00.
2 – OBTAINING THE CERTIFICATES FOR THE PROPERTY
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 be obtained will cost exactly R$ 4.770,00 each time we obtain them including the expeditor’s fees and government costs (because there are TWO SELLERS and one of them used to live in Barra do Piraí). It is possible that during the Due Dilligence period we need to obtain them more than once (because we have to check 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 CLIENT OK. No costs are involved, as they are covered by LAWYERS 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 property being sold is only ONE.
ESTIMATED AT R$ 6.900,00
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”)
ESTIMATED AT R$ 5.400,00
6 – LEGAL FEES – SC OFFICE
Our negotiated fee would be 1%. PROMOTIONAL FEE ! 🙂
So, we will need to pay, as costs to purchase:
1 – R$ 19.000,00 – ITBI TAX – PROPERTY TRANSFER
2 – R$ 2.150,00 – EXPEDITORS FEES, ABOVE
3 – R$ 4.770,00 – CERTIFICATES
4 – R$ 6.900,00 – TO BE PAID TO NOTARY for the deed of purchase.
5 – R$ 5.400,00 – TO BE PAID TO REAL ESTATE NOTARY for registring the deed.
6 – R$ 9.500,00 – LEGAL FEES
TOTAL: R$ 47.720,00