There are many cases in which people acquire real estate but do not transfer ownership with the Real Estate Registry Services. Hence the need to regularize property ownership.
And there are several reasons for this, such as lack of registration of the property, death of the seller without the granting of public deed, etc.
However, ownership of the property is only transferred after registration at the notary’s office in the name of the acquirer.
What to do to regularize your real estate property?
If you want to know more about this topic, some possible solutions will be discussed below.
Risks and inconveniences of non-regulation of property
Before we talk about some possible paths, the risks of non-regulation of real estate must be considered.
The non-regulation of property ownership is something that can entail many risks.
One of the risks is the risk of attachment in legal proceedings. This is because as the property is in someone else’s name, it can be pledged for that person’s debt.
Another risk is the loss of property. That’s right!
If another person buys the same property, the one who registers first will be the owner.
In addition to these risks, the non-regulation of property ownership can cause problems for the heirs.
If the purchaser, in life, did not transfer the property to his name in the Real Estate Registry, his heirs will have to regularize the property to later inventory and share.
If they don’t, they can only inventory and share ownership of the property.
Therefore, do you intend to regularize the ownership of your property?
Your answer to this question was probably a yes. And that’s very prudent.
But what is the best way to regularize real estate ownership?
It depends! The means of regularization will depend on the type of irregularity to be diagnosed.
We will discuss some ways of regularizing real estate ownership below.
Also read Real estate brokerage contract: what precautions should I take?
The first means of real estate regularization that we will discuss here is compulsory adjudication.
Its legal provision is found in articles 1,417 and 1,418 of the Civil Code and in article 22 of Decree-Law 58/1937.
Compulsory adjudication is a lawsuit by the prospective buyer against the promising seller who refuses to voluntarily grant the public deed of purchase and sale.
The public deed of purchase and sale, as a rule, is the appropriate document to transfer the property to the buyer with the Real Estate Registry Service.
There are several requirements to be fulfilled in order to use the compulsory adjudication action.
It is necessary to analyze the particularities of each real estate irregularity to conclude whether or not it is a case of compulsory adjudication.
In this action, the judge can be asked to fulfill the obligation of the promising seller and order the property registry to transfer ownership of the property to the buyer.
With this, the ownership of the property will be regularized in the name of the new acquirer.
Another means of regularizing property ownership is usucapião.
It is very common for people who acquired real estate years ago and have lost their payment receipts, contracts.
When there is no evidence of the business or its settlement, or the acquisition is made through the exercise of possession, it is possible to regularize the property through adverse possession.
The usucapio process can be extrajudicial (proceding at the Real Estate Registry Service) or judicial.
Therefore, it is necessary to gather the relevant documents and analyze the fulfillment of legal requirements.
These are some of the documents needed:
- personal documents of the requesting party
- notarized minutes proving ownership
- Documents that prove ownership (IPTU, water and electricity bills, etc.)
- plant and descriptive memorial
- clearance certificates
- fair title
With this, it is evident that one of the forms of regularization of real estate is adverse possession. Remember that the extrajudicial procedure is faster.
Inventory and sharing
Another way of regularizing property is through inventory and sharing.
When a person dies and he leaves property, such property becomes part of a patrimony called an estate.
However, at the time of death, the assets are automatically transferred to the heirs and legatees, according to article 1784 of the Civil Code.
However, for immovable property to be incorporated into the assets of heirs and/or legatees, it is necessary to open an inventory and share, and register.
This process can be extrajudicial or judicial.
If the successors – heirs and legatees – are of greater capacity, are in agreement with each other and are assisted by a lawyer, they can carry out the inventory in a notary’s office.
If one of these items is missing, they will have to use the judicial route.
However, just taking inventory and sharing is not enough to transfer ownership.
At the end of the process of opening the inventory and sharing, the sentence or the deed of sharing will be taken to the registry.
With that, the ownership of the real estate will pass to the name of the successors.
For the inventory and sharing it is necessary to gather the personal documents of the heirs, surviving spouse, legatee and will (if any), death certificate of the deceased, property registration, tax debt certificates. Thus, carrying out an inventory and sharing is one of the ways to regularize properties.
As you can see, some ways to regularize the ownership of your property were mentioned.
But how to regularize property ownership?
These are some of the many ways to regularize real estate ownership.
The most appropriate means or the strategic combination of various means will depend on the type of irregularity diagnosed.
Therefore, the correct diagnosis of the irregularity precedes the choice of the correct solution.
There are irregularities that can be remedied through administrative means, however, others require the adoption of legal measures.
Other irregularities demand the combination of administrative and judicial measures.
The first step is to look for a real estate law professional and bring the case and any relevant documentation to him.
After analyzing the case and relevant documents, it will indicate the most suitable route for your case.