Risks in real estate contracts: what they are and how to prevent them

[najmulseo2020]

Real estate contracts are present in the routine of the real estate sector, which is certainly one of the most relevant for the Brazilian economy, as it influences the generation of jobs , attracts financial investments , encourages urban development , and, of course, generates housing .

Purchase and sale, exchange and lease are examples of contracts signed daily by companies in the real estate sector and individuals or legal entities looking for a place to live, undertake or invest.

But, like any business, there are also risks in real estate contracts.

To avoid them, every transaction must be carefully analyzed accurate mobile phone number list before confirmation, thus ensuring the greatest possible protection of the rights of the parties involved – especially the purchaser.

We call a real estate contract any contract that has as its object a property or rights relating to a property .

They can be concluded between two or more individuals, between legal entities or between individuals and legal entities.

In general, real estate contracts are signed in writing, as, in most cases, the law requires it to be this way.

real estate contract risks broker
What is a real estate contract?

Main types of real estate contracts
Considering that a real estate contract is any contract whose object is a property or rights relating to a property, there may be an infinite number of types of contract .

But, certainly, there are the most common modalities and frequently present in the lives of most people and the routine of most companies, such as purchase and sale contracts and lease contracts , for example.

The purpose of the purchase and sale contract is the sale of a property by one person to another (natural or legal person), in exchange for the payment of a price .

According to art. 108 of the Civil Code, when the value of the property is greater than 30 (thirty) minimum wages, the purchase and sale must be formalized by means of a public deed , drawn up in a notary's office .

Therefore, it is common for this type of business to be signed, first, through a purchase and sale agreement, which will contain all the rules of the transaction, and then formalized by the deed, a document necessary to register the transfer of ownership at the property registry office.

We can say, then, that the purchase and sale agreement can also be a real estate contract.

real estate agent contract risks
Main types of real estate contracts.

The lease agreement is also an example of a real estate contract that is very common in practice, both in the lives of people looking for a place to live (residential lease) and of businesspeople looking for a property for their establishment (residential lease).

We can also mention the real estate exchange contract , through which, basically, the parties exchange one property for another .

When they do not have the same value, the payment of the so-called “ retorna ” is established , generally in cash, corresponding to the difference between the values ​​of the exchanged properties.

These are just a few examples, since, as we anticipated, there are many possibilities for real estate contracts.