Property deed: clarify all doubts

Buying a house follows a process consisting of a few steps that must be strictly followed, in order to ensure that you do not rush and everything follows the law. First, you have to choose the house, decide if it is the one, apply for the loan, assess the associated costs and, finally, after all these steps are gone, do the property deed.

It is precisely on this last moment, the writing, that we are going to focus, showing you everything you need to know.

After reading this article, you will no longer be taken by surprise and all your doubts will be clarified!

PROPERTY DEED: WHAT IS IT?

Before anything else, let's realize what exactly a real estate deed is. And, for the sake of clarity, we can summarize it as follows: the deed is the legal act that legitimizes and legalizes the purchase and sale contract for a given property.

For the deed to be signed, both parties interested in the business must be present, seller and buyer, and the signature of a notary or a legal representative is also required.

Types of property deed:

When it comes to the deed of a property, there are some different types, depending on the objective of completing the business. Take note.

Purchase and sale deed
This is the most common type of deed and the one that makes the purchase (and respective sale) of a particular property official.

Purchase and sale deed with the intervention of financial institutions
Very similar to the deed mentioned above, in this case a third figure appears, which is the bank that will grant the loan, which figure must be present in the act of deed and in the document prepared.

Donation deed
In the case of the donation deed, the process is exactly the same, with the difference that there are no associated values, that is, the seller becomes a donor and the transfer of the property is carried out without any associated cost to the buyer.

Barter deed
Finally, in this case, the deed is performed to sign the exchange of real estate between two parties. This exchange may or may not require some added value for one of the parties, if one of the properties does not have an equivalent value.


STEPS TO FOLLOW TO MAKE A PROPERTY DEED

The deed of property corresponds to the final stage of signing the contract. It is usually preceded by a promissory purchase and sale agreement, where a down payment is paid as a way to guarantee the willingness to buy the house.

In that same document, a period is stipulated (usually between 30 and 90 days), after which it is necessary to mark and carry out the deed, otherwise the buyer will lose the value of the deposit.

From the moment of the deed, the buyer becomes the legal owner of the property. Find out what are the various steps that make up this phase.


Payment of Municipal Tax on Property Transfers (IMT)

If you are not exempt from this tax, get information on how to pay it from the official finance website or a tax office near you. Proof of IMT settlement must be presented in the act of deed.

Acquisition and Mortgage Records

The purchase and sale deeds and loan with mortgage are entered into at a Notary Office or at a Land Registry Office. Acquisition and mortgage records are required when reading the deed.

Deed of purchase and sale and mortgage

The moment of writing encompasses two moments. The first corresponds to the execution of the purchase and sale agreement, through which the buyer becomes the owner of the property, and the loan agreement with mortgage in which everything related to housing credit is defined (the value, the interest rate, repayment terms, repayments, etc).

After the conclusion of this last contract, the bank releases the amount necessary to pay the property to the former owner.

DOCUMENTATION REQUIRED FOR PROPERTY DEED

And then what paperwork is needed to sign a deed smoothly? We help with the list:

Civil identification documents and tax identification of stakeholders;
Content certificate of all inscriptions and descriptions in force;
Urban Land Register or application for registration of the property in the matrix (IMI Model I), issued by the Tax and Customs Authority;
License for use (in the case of properties built after August 1951);
Technical Data Sheet (if the license for use was issued after 30.03.2004);
Infrastructure Certificate (if you have a Subdivision Permit registered since 1992, without providing a guarantee and in the case of 1st transmission);
Energy Certificate and Indoor Air Quality in Buildings;
Proof of payment of IMT;
Proof of payment of Stamp Duty;
Statements of Exercise of Preemptive Rights (if any);
Toponymic Certificate (if any);
Statement of the outstanding amounts of the loan for the purposes of its settlement (if any);
Promissory contract for the purchase and sale of the property;
Declaration of liquidation of IMI (Municipal Property Tax).

HOW MUCH DOES A PROPERTY DEED COST?

Like everything else, the deed entails costs that can be significant. This depends on several factors such as the value of the property, whether it is the first or second home, among other aspects that affect the price of the deed.

The issue is not just the costs with the deed itself, that is, with the document, but rather with taxes, not to mention the expenses associated with mortgage loans.

Associated with a deed are always some costs, which have to do with the transaction itself and also with public taxes and the value of the credit (if any):

Stamp duty on transaction: 0.8%
Stamp duty on credit (above 5 thousand euros): 0.6%
Registration of the deed, to be done at lawyers, one-stop shop at the Registry Office or at Casa Pronta service desks, or at a private or public or private notary;
Payment of IMT = Deed Value or Tax Equity Value x Rate to be applied – Installment to be deducted according to data: Taxable income | Fee | Portion to be slaughtered
Up to €92,407.00   | 0% | 0€
More than €92,407.00 up to €126,403.00 | 2% | €1,848.14
More than €126,403.00 to €172,348.00 | 5% | 5,640.23€
More than €172,348.00 to €287.213.00 | 7% | 9,087.22€
More than €287,213.00 up to €574,323.00 | 8% | €11,959.26
More than €574,323.00 | 6% | 0€

Now that you know how important it is to do the property deed, try to gather the necessary documents and set aside money to pay all the associated expenses.

Don't forget that only the deed of property makes you, legally, the owner of the house of your dreams, so, as soon as possible, celebrate this document, which is essential for the official act of purchasing your house.

Source: e-konomista.pt