Law exempts the presentation of negative certificates in the purchase of the property

A change in legislation released buyer and seller from presenting negative certificates in the process of buying and selling the property, reducing costs and time to close the deal. The objective is that the property registration certificate informs any question that puts the transaction at risk.

Under the new rule, ratified in Law 14,382, the buyer is no longer liable for debts that are not registered in the property registration, protecting his good faith.

It is up to the creditor to take the initiative to inform the existence of a debt or legal action in the registration of the property.

The change reduces the need to issue more than a dozen certificates, which can generate savings of up to R$ 700 per CPF surveyed.

In the long term, it is expected to reduce the number of lawsuits by creditors collecting old debts from new owners.

For now, real estate law experts recommend caution when dispensing documents. The fear is that judges will continue to request the certificates.

“There is a lot of uncertainty about how it will be in practice, so we lawyers continue to demand all clearance certificates”, says Leandro Sender, partner at Sender Advogados Associados.

If the buyer decides to give up taking the negative certificates, the advice is to research if there is a Certificate of Real Encumbrances with any irregularity involving the property, such as labor action and attachment of assets.

“This law came into force in the middle of this year, and this provision has been in effect since December last year. For real estate purposes, it is very recent. There is no way to know how the jurisprudence will deal with this matter”, says Pedro Serpa, from S2GDC Lawyers.

Abrainc (Brazilian Association of Real Estate Developers), which participated in the discussion of the law, says that it has noticed positive changes since its enactment and that the law benefits citizens with cost reductions.

Documents required when purchasing the property

• Copies of RG and CPF
• Income tax declaration
• proof of income
• Proof of marital status
• Extract from FGTS (Service Time Guarantee Fund)
• Proof of payment of IPTU, ITBI or ITCMD (in case of donation)
• Property registration
• Floor plan of the property
• Updated certificate of real liens

• Declaration of non-existence of condominium debts

• Debt balance statement, if the property is financed by another financial agent

Check possible property debts

The future buyer can consult the updated registration and the Real Encumbrance Certificate of the property of interest at the Property Registry Office.

Under the new legislation, notaries must provide services digitally and must be connected to provide certificates from anywhere in the country.

By the registration it is possible to find out the entire history of the property since the construction. The certificate informs financial pending issues related to the property.

Property tax debts (Imposto Predial e Territorial Urbano) must be verified with the city hall where the property is located. In the case of condominium debts, it is necessary to seek the condominium administrator.