Everyone has heard of a public deed of purchase and sale, but what few people know is that the content of this document varies according to the negotiation between the buyer and the seller. The deed is a mandatory document for the registration of the property before the Registry Office, which makes official the intention of both parties regarding the negotiated property. Check out the different types of deeds that can be made in the Notary Office.
Public deed of purchase and sale of property in cash
As the name implies, this deed is the officialization of a cash negotiation, that is, the payment for the property is made at the time of deed. An agreement between the parties is also possible, establishing the payment of a down payment beforehand and the balance at the time of the deed. If full payment is made in less than 30 days, it is considered a cash sale.
Public deed of purchase and sale in installments with adject fiduciary sale agreement to the individual
Here the name is already frightening. The adject fiduciary sale pact is an agreement made between the parties in which the rights to the property remain with the seller until the debt is paid by the buyer – which in this case, is an individual. In this chosen way the seller can transfer the property to the buyer without fear.
This can be done by the seller directly with the buyer: they sign a contract in which it is stated that the rights to the property belong to the seller until the buyer pays for everything. And it can be done by the bank too, in the case of a loan. By the way, this is the most common case: you, the buyer, go to the bank wanting to finance a property. The signed contract states that the right to the financed property rests with the bank until you pay all your debt to it. In other words, if you don’t pay the mortgage, the property remains with the bank.
Out of curiosity and to make life easier for those who are not in the field, fiduciary alienation can also be called lien on guarantee, since the property itself is given as a guarantee of discharge.
Public deed of purchase and sale and assignment of acquisitive rights
This document is made when the buyer wants to transfer the rights he has over a property to another person before even registering in his name. It’s a way to buy time. As an example, let’s take a building under construction. The buyer of one of the apartments must normally make a purchase and sale deed, but if he wishes to transfer the rights to another person before the property is ready, he can include in this deed the assignment of rights, that is, at the same time as becomes the owner of that property, he transfers the rights to a third party.
Instead of making a deed, waiting for the keys to be handed over, and registering the property in your name and then doing it all over again for the other person, you make a single document. However, you must pay two different taxes: the transfer of property, the famous ITBI, and the transfer of rights.
Public deed of purchase and sale in installments with termination clause
In this type of contract, the sale will be in installments and the seller only accepts to transfer the property to the buyer with the inclusion of a condition clause. This condition determines that the amount be paid in installments and linked to the payment of promissory notes. Each installment paid represents a promissory note redeemed by the buyer.
The buyer may transfer the property to his name, but when paying off all the installments, he will be required to present to the real estate registry all the promissory notes redeemed to make the property registration official in his name. Without the presentation of the promissory notes, the notary office does not accept to complete the purchase and sale process.
If the buyer does not make the payments, the seller can collect the amounts owed or cancel the deal – if the buyer cannot pay off the overdue debt. In other words, the effective transfer of the property to the buyer’s name is carried out only when payment is totaled.
Public deed of purchase and sale promise
This deed is used when the seller wants to give immediate possession to the buyer. However, the definitive deed only occurs when the debt is paid off. In this case, the property remains in the seller’s name until full payment, but this promise is a guarantee for the buyer: if the seller dies and the price is paid, the heirs are obliged to transfer the property without including it in the inventory
Definitive public deed of purchase and sale (linked to the promissory deed)
It is the definitive public deed that makes the purchase agreement official. Once the price is paid in the promissory deed of purchase and sale, the seller is obliged to transfer the property to the buyer’s name through this deed. The tax has already been paid in the promissory deed.
Public deed of purchase and sale with mortgage agreement
Here, the mortgage replaces chattel mortgage. The difference is that the mortgage requires the lender to go to court to put the property up for sale and receive your credit. In fiduciary sale, this is not necessary: the creditor consolidates ownership of the property in its name and takes it to an extrajudicial auction. In the past, the mortgage was the most used form of bank financing guarantee, but it is currently in disuse due to the delay in the sale of the guaranteed property.
Public Deed of purchase and sale cancellation
Unlike the others, this document undoes a purchase and sale deed when the parties wish to undo a deal that has already been carried out and has not yet been registered in the real estate registry.
There are cases in which the parties make the deed and, shortly thereafter, give up the deal by mutual agreement. In this case, the deed has to be undone by another that cancels it. But this only works if the deed that made the deal official has not yet been registered.
Public deed of assignment of purchase and sale promise with the creditor’s consent
This deed is used in the purchase and sale of property on the plant or under construction, and the buyer wishes to transfer the rights to that property. Here, it is mandatory for the creditor to agree to the transfer. Once everyone is in agreement, this will be the deed used for the buyer to assume the rights (and duties) of the seller.
Public deed of purchase and sale of an ideal fraction
This deed is used when the seller owns only a portion of the property and wants to sell that portion to third parties.
In this case, the seller must, first and obligatorily, offer his share to the owner of the other fraction of the property. If the latter is not interested in acquiring the portion that does not belong to him, the sale can be made with the realization of this deed that highlights the negotiation refers only to a fraction.
The term ideal fraction is used because it is the sale of a part that cannot be defined.
Public deed of purchase and sale with encumbrance subrogation
This deed indicates that the negotiated property is not fully paid – the seller is still paying in installments. The buyer acquires the property aware of the debts and assumes the payment of installments that are due.
Public deed of purchase and sale of property with payment in kind
The buyer buys a property from the seller and pays part of this property with another property owned by him that will be transferred to the seller.
Public deed of purchase and sale with domain reservation
It’s very similar to a deed of promise to buy and sell: the negotiated property is handed over to the buyer and the domain is in the seller’s name as a guarantee of payment. Domain reservation is the security clause.
Public deed of rectification and ratification
This deed is only performed when one of the parties, buyer or seller, has made an error in the public deed of purchase and sale. This document is then needed to correct the error.