Keeping real estate documentation organized and up to date is essential for any real estate property owner. Real estate certificates serve as proof of a real estate property’s legal and tax status, ensuring security in transactions and avoiding unpleasant surprises. Whether you are selling, buying, financing, or regularizing a property, keeping these certificates up to date is a basic requirement to demonstrate that there are no pending issues or irregularities.

Furthermore, the Brazilian real estate market increasingly demands transparency. Banks, buyers, and even government agencies request certificates before any transaction to verify both the real estate property’s and the seller’s status.

• Certificate of in rem guarantee: shows whether there is any encumbrance on the real estate property, such as a mortgage, levy, or usufruct. It is essential to ensure that the property is not compromised;
• Urban Real Estate Tax (IPTU) Certificate: informs the tax situation with the municipality, checking if there are any outstanding tax debts. In cities like São Paulo, it is possible to issue this certificate directly on the city hall website; and
• Registration Certificate: the most important document, which contains all official information about the real estate property, such as owners, transfer history, and any restrictions. The Real Estate Registry Portal allows you to consult registrations across the country digitally.

These certificates are requested for virtually any real estate transaction, as they function as an “X-ray” of the real estate property and ensure transparency for the parties involved.

One point that generates a lot of doubt is the distinction between a public deed of purchase and sale and the registration of the real estate property in the registry. Although both involve notary offices, they are different stages.

The public deed is drawn up in a Notary Office, formalizing the parties’ will in the purchase and sale. Registration in the registry is done at a Real Estate Registry Office, and only after this act is the property effectively transferred.

Please note: every movement involving the real estate property must be recorded. Selling without notifying the notary office or failing to update the registration can lead to ownership disputes or difficulties in selling the property.

Those who own several real estate properties need to be even more careful. In addition to keeping up with documentation, keeping real estate taxes — such as IPTU — up to date and checking for any other outstanding tax issues is essential. Irregularities of this nature make business unviable and can lead to charges, fines, and even tax enforcement.

Furthermore, in any real estate transaction, not only is the real estate property investigated, but the situation of the owner or seller is also investigated. If the individual is in debt with the courts or the tax authorities, this can affect the transaction and create uncertainty for those who intend to buy.

Real estate certificates are more than just bureaucratic documents. They are a legal and fiscal security instrument for a real estate property. Having control over the registration, being up to date with the IPTU, and proving the absence of real estate liens is essential to preserving the property’s value and ensuring the viability of future businesses.

At PLBrasil Paralegal, we offer comprehensive support to property owners, investors, and companies looking to organize their real estate portfolios to avoid risks. Get in touch and find out how we can help you keep your real estate properties in full legal compliance.