In this article, we will give you some tips on how to choose the best advice on real estate regularization.
When thinking about real estate law, most people probably already think about situations involving litigation. That is, disputes through lawsuits regarding the possession or ownership of real estate. However, real estate law doesn’t just understand that.
Attorneys working in the real estate sector are also essential in advising on real estate regularization.
In general terms, the regularization of real estate refers to the adequacy or legalization of possession and ownership of the land. In addition to problems in the buildings or in the documentation before the competent bodies.
But what is the importance of regularizing your property? Do you know? Is regularization only essential, given the negotiations for purchase and sale?
THE IMPORTANCE OF PROPERTY REGULARIZATION
Each property is subject to municipal legislation involving, in particular, the zoning and land use instituted by the Municipality.
The zoning and land use law aims, in short, to delimit the spaces that can be used for housing, commerce and industry.
Therefore, it may happen that your built property (that is, with buildings) is in suitable conditions for housing , including in the space defined by legislation; but, as it does not have the documentation in order, it generates the highest IPTU, due to the registration with the city hall as if it were territorial (without building).
Or, the property needs to be modified to comply with the precepts described in the legislation, such as the adequacy in the form of use.
Using a property with specific commercial or industrial functions, in a space exclusively intended for housing, can generate fines. It may also make it impossible to obtain a business license.
Another very common situation is the case of the property that is the object of purchase and sale , but which, although completed, cannot be sold in the form the buyer needs (through real estate financing), as the certificate of completion has not yet been issued. Of work – famous CVCO.
The commercial property , in particular, need to be with the documentation periodically checked and properly aligned under the law, because of the need to obtain and subsequent license renewals and operating permits.
Another common situation is the lack of registration of the construction in the property’s registration. The registration states that the land is without improvements, but in reality a building has already been built on it. Or perhaps, if there is a registered construction, it no longer corresponds to reality, as there have already been later alterations.
Thus, it is essential to regularize the documentation of the properties in the respective competent bodies so that the proper use is legally possible, without exposure or risk of application of penalties.
This is what the regulations pertaining to real estate law refer to as regularly assigning the “social function of the property”.
HOW TO IDENTIFY IF YOU NEED TO REGULARIZE THE PROPERTY?
Initially, it is important to remember that the regularization of properties is consistent with the adequacy or legalization of information relating to possession and ownership. In addition, it also refers to the adequacy of buildings or necessary documentation, with the competent bodies. These bodies, as a rule, consist of the Municipal Government, the Real Estate Registry Office and, in some situations, the environmental secretariats.
The easiest option to find out if a property needs to be regularized is to leave it in the hands of a law firm operating in the real estate market. The lawyers will carry out a series of investigations to assess the property’s regularity situation and, at the end, present a technical diagnosis.
This is especially true if, in the short or long term, your intention is to carry out investment transactions, such as leasing, leasing or buying and selling real estate.
But if, before seeking legal assistance, you prefer to find out about the documentation of your property, we indicate two options. First, seek to obtain the encumbrance and registration certificates from the competent real estate registry office. Secondly, look for the city hall where your property is located to obtain other certificates.
The certificate obtained at the property registry office, better known as property registration, is actually the identification document.
When registering the property, it will be possible to check the data already registered. Data relating to the owner, the size of the property, exact location, registrations or write-offs of buildings. Furthermore, if there are any annotations that may affect negotiations, such as those related to arrest, attachment, or the existence of a lawsuit.
Through the certificate issued by the city, it will be possible to identify, in addition to the owner and property data, information regarding the market value and the conditions used for purposes of taxation by the IPTU. It is also possible to check if there are any pending authorizations/permits, ITBI payment or other fees required by the Municipality.
When these documents are analyzed by a real estate legal advisor, it becomes possible to know, in addition to what is pending, whether the information described there is, in fact, regular.
An example is the market value registered for tax collection purposes.
The city may be overvaluing the property, which entails a greater tax burden. Or, disregarding characteristics that, in the face of prone buyers, may come to disadvantage negotiations, given the value registered there, such as buildings, or the appropriate length.
SPECIALIZED REAL ESTATE ADVICE
Knowing the importance of keeping your property regularized, and the initial assumptions to identify if there is a need for regularization, comes the fundamental question: how to hire the best advice to regularize properties?
Even though hiring the “best” real estate consultancy is something relative, especially given the affinities and the environment in which it is found; what must be analyzed independently of anything is the purpose of the contract.
The best real estate advice will be the one that meets your objective in relation to the property and for that, prefer those who specialize in the real estate market. This point is already a step towards the desired result.
In other words, the following questions should be asked: To regularize the property for what? Sell? Invest? Prevent fines? To enable proper use and occupation?
In other words, if you intend to keep your property regularized to be aware of opportunities linked to investments, the most appropriate thing is to look for a professional who can present you with safe strategies according to your objective.
Thus, if the objective is to sell your property , the ideal is to leave the property properly regularized , and in such a way that there can be constant real estate appreciation – changing, if necessary, the physical and structural conditions for essential and aesthetic repairs.
However, if the objective is to be aware of the opportunities to acquire real estate, the most appropriate thing is to rely on the legal advice of an office that will help you in procedures related to preventive investment strategies.
This is the case of due diligence, where all parties involved are evaluated, anticipating the possible risks of the transaction to the client.
In turn, if you are in a property, as owner, in order to acquire the property through adverse possession, real estate legal advice focused solely on investments, as mentioned above, will not be sufficient for your purpose .
In this situation, the most appropriate thing is to hire a law firm that also has the expertise to act in the judicial sphere.
Because, although it is possible to adopt the procedure of extrajudicial adverse possession, most situations still demand the need to bring a lawsuit.
There are also those who need real estate advice, with a view to receiving property through inheritance.
Procedures involving property inventory and inheritance are not always easy. This is because they can generate family conflicts and even doubts about how it is possible to allocate the property received.
Is it possible to sell the property that, after legal proceedings, has not yet been transferred to the property registry office? What does the registered usufruct of the property that is the object of inheritance mean? And in situations involving more than one owner, how is it possible to dispose of their share without taking the loss?
These are just a few examples of questions that arise in situations involving inventory and inheritance.
Thus, if the search for real estate consultancy has objectives such as these, the most appropriate thing is to look for a law firm. In this case, an office with experience in the real estate market is recommended.
The same criterion applies to builders, developers, developers and real estate agencies, among others similar.
That’s because, performing daily activities related to the real estate industry, such companies need legal partners who are up to their knowledge. In addition, they need to know how to deal with the unforeseen events arising from the activities, so that, with this, it is possible to increasingly develop the service provided.
So, when the specialized real estate consultancy is a law firm, in addition to meeting your objective, it will also give you security as to the legality of claims, negotiations or operations.