DEED PROCESS, PHASES, COSTS, EXPLANATION -EXAMPLE
AN EXAMPLE OF PROCESS
1 – PAYING the PROPERTY TRANSFER TAX (ITBI) (2%)
We should start processing the Property Tax right after Due Dilligence is finished, This takes around 10 days to do.
ITBI is calculated NOW at 2% of R$ XXXX= R$ XXXX ( value is good for today, it can be adjusted accordingly to the day the city receives payment (they could, hypothetically, change that value, but its NOT COMMON NOR USUAL).
The expenses to process the ITBI (expeditors fees, etc) are at R$ 2.750,00.
2 – OBTAINING THE CERTIFICATES
We need to obtain the certificates necessary to purchase the property, as part of the Due Dilligence procedure, because we cannot buy a property without knowing if it is fit to be purchased. However, some certificates are valid for 1 month only, so there may be a need of obtaining them more than once (once during due dilligence, a second time to do the public deed). By law we are required to obtain those over again, because the deed must be accompanied by such newly obtained certificates with not more than 1 months-old. These certificates that will need to be obtained will cost , each time, R$ 9.987,71. (if we need to obtain twice, we will pay double that amount, and so on).
3 – DRAFT THE PUBLIC DEEDS OF PROMISE TO PURCHASE AND SALE (its a PROMISE TO PURCHASE AND SALE DEED, not a DEFINITIVE DEED, in case of installment payments
That will be done by the lawyer, starting after DD. No costs are involved, as they are covered by fees for lawyer, for due dilligence.
Other costs that need to be paid:
4 – DEEDS NOTARY – TO BE PAID TO THE 24th NOTARY PER PROPERTY BEING SOLD (there are X properties) – R$ 3.450,00/property
(property can be a floor in a building)
5 – REAL ESTATE NOTARY – TO BE PAID TO THE 7th PROPERTY NOTARY PER PROPERTY BEING BOUGHT – R$ 2.250,00
6 – ATTENTION! –> in case of installment deal, When we FINISH PAYING ALL THE INSTALLMENTS (ONLY THEN!) we will need to sign the DEFINITIVE DEEDS and register those DEFINITIVE DEEDS. Then, we will have costs number “4” and ” 5″once again.