Clipping of news on Brazilian Culture, Law and Citizenship
24/08/2012
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Fees and taxes always make buying a property much more expensive than it looks
SÃO PAULO - It's not just the high prices that frighten those who dream of buying a house or apartment. The dream of own property also involves more paperwork than it seems. Are fees, taxes, and expenses of transfer deed and registration of the property that appears when you close the deal.
According to a lawyer specializing in real estate law Carla Lobato, considering the whole state of São Paulo, tables cost of notary's offices of Notes (notary responsible for drafting the scriptures) and the Registries of Real Estate Registry (registry office responsible for recording the transaction purchase) are progressive and vary according to the total value of the property.
According to Carla, and these expenses will also expenses costs ITBI (Tax Transfer of Real intervivos) paid directly to City Hall, which revolve around 2%, depending on the municipality.
For those wishing to use the FGTS (Guarantee Fund for Time of Service) to buy the property, you must also pay the cost of additional bank up to R$ 1,900.
Overheads
At the request of Portal InfoMoney, the expert calculated some of these hidden costs, taking into account a property valued at R$ 200,000 in the city of São Paulo. See what the costs are to be paid upon the issuance of the deed:
Brokerage: 6% of the transaction amount or R$ 12,000. The cost is usually paid by the seller, but will likely be built on the value of the transaction;
ITBI: 2% or R$ 4000;
Notary Notes: R$ 2500;
Registry of Property: R$ 1,580.
The total cost therefore exceeds R$ 20,000 - or more than 10% of the property value. According to the lawyer, to perform the calculation of these costs, we must take into consideration the higher of the price of sale and the market value of the property. "Homes with parking space - registration and property tax apart - require a separate record for it," he explains.
Other cases
The expert explains that in the case of properties financed by SFH (Housing Finance System), the calculation changes slightly because the bank itself issues a contract of sale with real estate financing. This contract is valid for deed, which reduces spending on waiver of this document.
According to Carla, this document is a collateral property that requires a record of this warranty. This record will be calculated on the amount of funding.
"Regarding the Registry Offices of Real Estate, the fees payable for the acts related to the first property acquisition will be reduced by 50%. These costs are calculated only on the portion funded effectively, and recording the part paid in cash will be the buyer's responsibility, "he adds.
As for ITBI (Tax on transfer of immovable property), the value also decreased to 0.50% of the amount financed, limited to R$ 42,800 and 2% on the remaining amount.
Considering a person who acquired the property for R$ 200,000 and made a grant of R$ 150 000, the calculations are:
Brokerage: 6% on the value of the transaction;
ITBI: R$ 3,358.00
Notary Notes: zero
Registry of Property: R$ 1,712.88 (considering the costs of registration with liens).
More costs
According to Carla, the mortgage is that the buyer must pay for the service broker and rates on the valuation of the property and the legal documents that make up the funding process, which can range from R$ 1000 to R$ 2000 depending on the financial institution and the value of the property.
When consumers choose to buy a property, you must also take into account maintenance or in case of apartments or condominium charged monthly, whose costs may vary depending on region, age of building, repair and common areas. "Remember that the apportionment of these costs always depend on the number of units within the condominium. Another important factor to be considered is the level of default, "advises attorney.
Another tribute involving a property is the property tax, which considering the city of São Paulo, the tax is 1% on the assessed value which may be discounted or accrued depending on factors determined by the Municipality.
Another relevant factor that weighs in the pocket of the buyer are the costs related to contractual interest and insurance Death and Permanent Disability and Physical Damage Property. The latter are required in the hiring of funding, beyond the restatement incident.
Seller also pays
Costs incident to the purchase of the property also affect the seller, because when a property is sold at a profit, ie, when the value of the sale is greater than the purchase price, there is a tax payment called "Capital Gain" that corresponds to 15% calculated on this difference.
This tax must be collected through DARF (Document Storage Internal Revenue Service), but may have tax exemption in the following cases:
If the property sold has a value less than R$ 440 000, is the sole property of the taxpayer and provided that the seller has not done in the last five years, other disposition of property.
Gain on disposal of calculated properties acquired until 1969.
As of 16/06/2005, the gain realized by an individual resident in Brazil in the sale of residential properties, provided that the seller, within 180 days following the conclusion of the contract, apply the money from the sale of another property acquisition home located in the Country
If the seller does not fit in any of these cases, the payment of this tax should be done until the last day of the month following the sale of the property. The buyer of the unit should also provide details on transfer of property in their annual income tax in the year following the operation. The specific rules governing tax sales property can be found in the manual which is available on the IRS website Brasileira.
Source: Infomoney
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This article was translated by an automatic translation system, and was therefore not reviewed by people.