Deed of sale: what it is, value and more 

The purchase and sale deed is one of the main documents when negotiating a property.

For this reason, many people think that this is the only document required for transfer.

But is this true? What is a deed of sale? How does it work? 

To help you better understand the subject, this material will explain everything about the document in detail.

That said, to learn what it is, how it works, and the rules for writing, be sure to follow the content! 

What is a purchase and sale deed?

When we talk about purchasing and selling real estate, the first document that comes to mind is the deed. 

This is because this is the main document governing the negotiation.

Briefly explained, the purchase and sale deed is the document responsible for recording the entire process of transferring ownership of a property.

This means that all information relating to the sale is recorded there.

Therefore, it is the deed that determines that a change in ownership of the property has taken place.

It is worth mentioning that this is a public document, which is produced by the Notary's Office.

The purpose of producing the deed of sale is to provide proof of the transaction to the new owner.

This means that the deed serves as proof of the transaction and is intended to validate the purchase, showing all the details of the event.

Some information contained in the deed is: 

• Property ownership history; 
• Market value of the property;
• Value negotiated between the parties;
• Date of purchase and sale; 
• General identification of the property;
• Among other information.

It is worth mentioning that the property registration process is quite complex and requires scheduling and availability to collect the necessary documents.

Speaking of documents, the list is quite extensive, both on the part of the buyer and the seller.

This is because this document serves as legal validation of the sale, therefore, all information about the traders and the transaction itself must be present. 

And another important point is that the deed is not only valid for buying and selling.

This is because any type of property transfer must be registered, including donations. 

Deed vs. property registration 

And, we come to the topic that generates the most doubts when it comes to the purchase and sale deed.

Many people confuse or think that the deed is the same thing as the property registration.

However, we must emphasize that this is not true, as they are both distinct documents.

The property registration is like the general registration of the property, or as many people call it: the birth certificate.

This means that the registration is intended to identify the property, which includes both physical and geographical aspects and changes in ownership.

The deed, as we have seen, is only intended to record the transfer that was made to the property, serving as proof.

Therefore, we can consider that the deed serves to prove the information present in the registration regarding the change of ownership. 

Therefore, the deed is only valid when it is in accordance with the registration.

And, if the registration does not contain the transfer information present in the deed, it is considered out of date.

Therefore, keeping both documents up to date is essential to ensure that the property is properly registered and in compliance with the country's legislation.

How much does it cost to issue a purchase and sale deed?

As we have seen, the purchase and sale deed is an essential document for negotiating a property.

This is because it is through it that all information relating to the sale and transfer of property is recorded. 

Therefore, it is important to be aware of values, as it is not enough to simply pay for the property.

Documentation is also very important, and you need to prepare financially so you are not caught off guard.

The value of issuing the deed is not a fixed fee, as it depends on the value of the property.

What commonly happens is that the deed costs around 2 to 5% of the property value.

This percentage varies according to the municipality and is calculated based on the sale value of the property.

This means that the deed price is not determined based on the basic market valuation of the property.

Therefore, if the sales value is higher or lower than the average market value, the agreed price will prevail.

Therefore, when negotiating a property, keep in mind that the deed will cost you a percentage more than the agreed amount. 

See how to issue a deed 

In the previous topics, we were able to understand what a deed is, how it differs from registration, and the fees for issuing it.

Therefore, we only needed to describe how the request and issuance process works.

The first thing you need to know is that you will need to go to a notary's office in your city.

You must first consult the list of documents required to produce the deed.

As we have seen, the list is quite extensive, and it is important to take everything in order to ensure quick issuance.

With the documents in hand, you must participate in the interview for issuance, where you must present the necessary information and documents.

After presentation, you must pay the fee for bookkeeping.

After payment, you will complete the deed request process, so you just need to wait the requested period for withdrawal. 

It is worth mentioning that the process can be a little long, as it is a complex document.

But the good news is that at least everything can be resolved in one place.

Furthermore, if you bring everything requested, the process can be much simpler and faster. 

I received the deed: am I the owner? 

And finally, it is important to demystify information that circulates widely in the real estate market.

This information concerns the fact that the deed is sufficient to guarantee ownership.

It is important to say that this is not true, because, as we said, the deed must be in accordance with the registration.

Therefore, simply receiving the deed does not guarantee ownership, and it is even a method widely used by scammers to deceive buyers.

If the buyer does not have the updated property registration, the deed is useless.

As we have seen, the deed is only valid if it is in accordance with the registration, as this serves as proof of the transfer of ownership.

So, keep an eye out and make sure your deed matches the registration!