Real State Lawyers | Purchase and Sale Properties
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Real Estate Lawyers - Purchase and Sale Properties
What is a Real Estate Lawyers | Purchase and Sale Agreement?
According to Article 874 of the Civil Code, the purchase and sale contract is the transfer of a property, thing or right, for a price.
In terms of ownership of real estate, which can be both rural and urban, although in this case we will only make considerations about the latter, the transfer normally involves a previous stage of negotiation of the terms of this transfer, namely in terms of the definition of the parts and the ownership and the establishment of a price and respective payment terms, as well as the deadline for the execution of the deed.
Should I go to real estate agencies?
It is important to realize that real estate agencies are responsible for bringing together the buyer’s desires and availabilities and what is on offer on the market to satisfy these desires, negotiating the price and other conditions of the transfer, representing, in some cases, the interests of the seller, and in other cases the interests of the buyer.
Why should I hire a lawyer?
This preliminary phase is normally documented by the signing of a promissory contract for the purchase and sale of the property – drawn up by a Lawyer – with the fixing of a sign, a figure provided for in Article 442 of the Civil Code which works as a persuasion mechanism to the compliance, as anyone who fails to comply risks, in principle, losing the signal or returning it in double, if no other type of sanctions is agreed.
What is the value of the down payment for the Property Purchase?
Negotiation for setting the value of the down payment is free, and it can even be an immediate advance payment, but normally it is between 10% and 15%, so that, if any eventuality happens to one of the parties, the loss is more contained.
Why is it important to use a Real State Lawyers?
However, prudence advises checking whether the property has any mortgage or debt, often tax liens or other pledges that the seller has contracted. The information that often circulates about the financial health of certain construction companies is also relevant, so as not to be surprised by an insolvency in which any signs and advances that you have made end up plunging into a list of many other creditors.
Regarding condominiums, it is advisable to contact the respective condominium administrations, to find out about any existing debts of the selling owner, since, although they are not their responsibility, they may be involved in legal proceedings to defend themselves against their non-enforceability.
By the way, in this contact, it is worth asking if there are plans for repair or conservation works of a short-term scope, such as replacing roofs, painting the building, replacing elevators, because when you acquire the property, you will be responsible for all the amounts that will be expended to implement them.
How much time elapses between the Promise Agreement and the Purchase and Sale Agreement?
Between the date of signature of the promissory contract and the conclusion of the definitive purchase and sale contract, there is a time that serves, on the one hand, for the seller to gather all the necessary documentation for the sale, if he does not already have it, and, on the other hand, serves for the purchaser to gather the necessary funds for the acquisition, either through its own funds or through the use of bank loans, with the inherent negotiations in terms of property valuation, fixing of amortization and interest periods, as well as guarantees to provide, normally mortgages on real estate.
With the public deed, the transfer of ownership from the seller to the buyer takes place.
The agreed price, deducted from the down payment, is paid, normally before the deed, in terms that, when the lawyer or notary attests to this fact, and proceeds to read it, all the financial aspects are already settled.
If there is the intervention of a financial entity for the loan, a representative of the bank with powers for the respective contract will be present, normally a lawyer.
Once authenticated copies of the act of transfer have been issued, there is then a very relevant aspect which is to give it competent publicity, which is done by registering at the Land Registry Office of the place where the property is located.
What is the Commission charged by the Real Estate Agency?
In the context of the transfer of the property, the issue of the price is important, which, being freely negotiated, is the result of the combination of the interests of the seller in selling it and the buyer in acquiring it, but one cannot fail to take into account that the transfer involves a set of expenses that go beyond the price to be paid, from the outset, when the transaction is mediated by a real estate agency, which charges a percentage of the respective price, usually from 3% to 5%.
On the other hand, it is necessary to consider the fiscal and administrative expenses that encumber the transactions.
Thus, the Stamp Duty, which is the buyer’s responsibility, which, according to the respective General Table, amounts to 1.1% and is 0.8%.
The Municipal Tax on Onerous Property Transfers (IMT) is calculated from the value of the deed, but if this value is lower than the taxable asset value, then the latter value will be considered for the purposes of applying the respective rates.
For urban buildings or autonomous fractions intended for own and permanent housing, and as long as the value does not exceed €92,407, it is possible to apply for and benefit from an exemption. For other cases, the fees are progressive according to the value of the transfer, and may, at the limit, for transfers exceeding one million euros, reach 7.5%.
For the purposes of the deed only, the expenses vary according to the value, but, when the price of a certificate is added too much, they are normally between 200 and 350 euros.
At the Land Registry Office, registration is 225 euros plus VAT. In the case of recourse to the loan, there are two records, the purchase and sale and the mortgage, where the entire maturity of the loan is described in terms of terms, interest rates, penalties, etc.
The Casa Pronta service, made available by the State in some locations, lowers transaction costs, in terms of notary and registration, and is a solution to take into account in fulfilling everything necessary for a transfer of property.
It necessary to use a Real State Lawyers?
Not being essential, however, it is advisable that the transactions are accompanied by a lawyer, who normally assists the buyer, but whose support can also be provided to the seller.
The seller cannot just think of the price as the realization of a net profit, as there are often hidden taxes, as in the case of the taxation of capital gains, which constitute real bitterness in the mouth, eliminating a substantial part of the advantages that thought to have in the transaction.
With regard to the buyer, the presence of the lawyer is justified for the confirmation of the qualification and sufficiency of powers of the seller to sell the property, verification of possible encumbrances that fall on the same and limit the right to property, in case of easements and other types of authorizations that have been given, authorizations and licenses that the property must have, writing of the promissory contract, verification of the fees and the law applicable in the transaction.
What are the attorney’s fees?
Lawyers’ fees vary, but normally never exceed 2% of the transaction value.
If you want to entrust the lawyer with his intervention in the purchase, you can issue a power of attorney with special powers for the specific transaction, which, in strict compliance with its guidelines, will sign the promissory contract and, provided the necessary funds for the payment of the transaction, may later sign the respective deed.
Can the Lawyer authenticate the Purchase and Sale Agreements?
Lawyers are currently empowered to draw up an authentication term for purchase and sale contracts, and they are responsible for an explanation to the grantors of its content and of the particular document attached to that term, which, however, will only be valid after the respective electronic deposit. , mandatorily carried out in Property Online, as well as the warning of the mandatory land registration, of the aforementioned private document, to be promoted by themselves. Also, in these cases, it is advisable to previously inquire about the costs with the respective professionals in order to prevent any surprises.s
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Wills; Heir's Qualification; Disinheritance; Donations; Judicial and extrajudicial asset distribution; Wills annulment and revocation; Recognition of Succession Capacity and Entitlement to Heirs’ Rights; Right to inhabit the family residence and the right to household Belongings.