The real estate market is a space where new and used properties are bought and sold. Some buy the property for housing, others, however, for investment, etc. One of the types of properties marketed is the so-called on-plan property.
Purchasing a property on the plant can provide several benefits. Did you know that this type of purchase can save up to 30% on the property’s value? So it is! But, you must be careful before buying a property in the plant. Thus, the chances of achievement only increase and the chances of disappointment decrease.
On the one hand, construction companies are expected to offer the best product to their customers. However, on the other hand, the acquirer needs to check the quality of what will be purchased. In other words, you have to be alert when purchasing.
Do you want to know the main points to be evaluated when buying properties in the plant?
So, read on!
What to evaluate when buying a property in the plant?
Well, the act of buying must be conscientious and smart. Therefore, before buying it is necessary to evaluate. What if the property in question is real estate? Greater caution is warranted. What if this property doesn’t exist yet, but is about to be built? Not even spoken, then. Caution must be redoubled!
You don’t want a dream to become a nightmare and profits to be lost, right?
So, there are some precautions when buying a property in the plan that are necessary. After all, the market is not uniform and, unfortunately, not all companies involved in the process are reputable. It is not uncommon to see news about people who have been harmed by buying property on the plant. For example, cases of delay in the delivery of the work, construction defects, incorporations without permits and registration, etc.
Therefore, anyone who is planning to buy property in the plant should be on the lookout. That is, you should include an evaluation checklist in your plans.
Therefore, we have separated some information for you. There are 6 precautions you must have before buying a property in the plan. Which are:
- Research the construction company;
- Make sure the construction company has legal support;
- Review the mockup to see if it meets your needs;
- Organize a folder with all the documentation;
- Pay attention to the INCC values
Want to know these points in more detail? So, read on!
1 – Research the construction company
That’s right! Research is one of the most important steps in the purchasing process. After all, you can’t make a purchase without researching the product. Or at least shouldn’t, right?
But what should I look for?
First, the buyer must verify the entire professional history of the construction company. It’s important to check things like: Does it have a representative name in the market? Did you comply with the delivery of works in the past? In addition to these questions, you can access the “Complain Here”. From this site, you will get a sense of what type of Construction Company you will be dealing with.
But, let’s imagine the following:
Suppose you are researching everything you need. You have already searched for various information on the internet, asked people you know, etc. But suddenly, doubts arise about the developer’s legal status. And now?
Calm! There are certain details that only people who have the technical knowledge can help. For this case, the help of a lawyer specializing in real estate law is recommended. An expert lawyer will give you the right advice. He will check if the construction company has processes from previous customers etc.
Next, we’ll cover other details that are also important for decision making.
2 – Make sure the construction company has legal support
First, a construction company’s team must be composed of professionals from different areas. But what areas are these? Well, engineers, lawyers, brokers and architects are the essential professionals in the formation of the team. Because, in the end, the work of each one of them will bring a complete result. Therefore, focusing on the quality of services provided.
So, the composition of the developer’s team is one of the important points to be analyzed.
After all, a construction company works to make people’s dreams come true. Therefore, she must prioritize each step. And everything must be legal.
Thus, one of the primary professionals is the lawyer specializing in the real estate market. Well, he is the one who will provide all the necessary support regarding the legality of the real estate operation.
A good construction company has a team of specialists from different areas so that the entire process, from the planning of the work, plant and documentation, is carried out in accordance with the law.
Well, a reputable construction company knows that it is working with the realization of dreams. And, that is exactly why it must prioritize each step within the legality. Thus, one of the primary professionals when buying a property on the plant is the real estate lawyer. Whether to provide legal advice to the developer or even the purchaser of the property in the plant.
It is he, therefore, who will provide all the support in the area of real estate law, analyzing the contract. In addition, it will also examine each step and commitment made between the Construction Company, partners and customers.
3 – Review the model of the property on the floor plan to see if it meets your needs
Have you ever been so excited about something that you missed any important detail? So it is! But how not to get excited, right? After all, we are talking about our home. The place where we will have comfort and security for ourselves and our family. Therefore, this whole situation generates a lot of expectation and anxiety. However, we must act calmly. So that nothing goes unnoticed.
So, before anything else, visit the space and check out the model of the building. Construction companies make the models available. And, with the visualization of the model, you will have an idea of how the property will look like. This way, you can check if the construction will meet your needs and expectations.
Also, enjoy the visit to answer your questions. Whether in relation to space, location of the sun, and the floor of the apartment you want to buy, etc. Well now is the time to ask! So ask anything you want.
And now? He finished? Not yet! We are almost there. There are still other precautions when buying a property in the plant. Let’s continue?
4 – Organize a folder with all property documentation on the floor plan
By announcing the sale of apartments on the plant, the builders start a marketing campaign with printed and digital promotional materials. There is usually an estimated delivery date. As well as other information of interest to the buyer.
Therefore, it is essential to organize a folder with all information and documents related to the purchase of the property. This can help, for example, the lawyer to have arguments and evidence of what was as a promise and what was actually delivered.
Depending on the construction company’s profile, there may be a need to build a space for children’s leisure in the plan, for example. However, along the way, it was necessary to cut costs and this part of the work was not carried out. That’s why it’s important to keep all the papers relating to the property.
It is even important to obtain the documents that indicate the regularity of the project. Since, in this type of real estate project (property in the plant), it is prohibited to sell the units without first registering the development. But where do you discover this? Well, it is in the property registration that this information is identified. Therefore, it is important to obtain the so-called “mother” registration of the real estate development. This is an important document to keep.
5 – Register the purchase and sale promise
One of the first documents that must be signed between the parties is the promise of purchase and sale. The property on the floor plan is a property that has yet to be built. Therefore, it is marketed through a contract called a commitment or promise to buy and sell.
So, to increase the security of this type of trading, it is recommended to register. Well, this procedure has full legal support. Registering this preliminary contract helps to prevent criminal intent. For example, cases where the same apartment is sold to more than one person.
The registration of the promise to buy and sell the property on the plan also benefits the acquisitive right itself. In other words, the acquisitive right to the property in the plant gains “status” as a real right. On this topic, read the article: The real right to purchase the property in the purchase and sale promise.
So, if everything is correct, the registration is done very simply through an application at the notary’s office and payment of fees. However, to ensure this registration, it is necessary to meet the registration requirements of the promise of purchase and sale.
The promise to buy and sell real estate on the plant must comply with the law on real estate development. For example, this contract must contain the summary table of the law.
6 – Attention to INCC values
Another important point to check when buying property in the plant is the payment condition. For example, the rates charged in the contract. One of these indexes is the INCC – National Construction Cost Index. The INCC offers a basis on the possible increase in purchase costs, according to the property’s valuation.
The INCC corrects the purchase amount every month. But, it is important to emphasize that it does not keep up with inflation. The correction of values is a protection so that construction companies do not lose out if there is a variation in the prices of materials during construction. However, the INCC can only be practiced during the defined construction period. Thus, after this period, another index must correct the outstanding balance.
So, it is essential to pay attention to the INCC. That way, you won’t be surprised with a value far beyond what you imagined, making your financial planning difficult. Through this previous calculation, therefore, it is possible to have an idea if this type of property is within your possibilities or not.
In addition, it is important to define some criteria of what you consider essential in a property, aligning it with your real needs and expectations.
So, we come to the end of this article! We leave our gratitude to you who read this far! During the text, we talk about the 6 precautions when buying a property in the plant. By following these tips, you will have more security to buy a property in the plant.
But, were you still in doubt? Need help with a case? Contact us! We are Carvalho Gomes Advogados and we specialize in solutions for the real estate market. We are ready to receive you!