Frequently Asked Questions
What due diligence is generally conducted?
Real estate registry
The registry has a record of property ownership, with a complete description of each property on a material, economic and fiscal level, being able any citizen to require information regarding an enrolled building in the Registry. Thus, to analyse the “history” of the property, it is necessary to require the emission, of a document certificate of the full record of the title and dealings regarding the property. For that purpose the registration record number or the property's full address is requerired.
Mainly the register is consulted to check whether:
- the property is registered in the name of the person or company claiming to be the owner;
- there are any liens;
- any seizure as been registered.
Tax Office
It is also common to seek information on the tax office of the property's area, to check if it is registered and if so, to obtain the following information:
- the property registration number;
- the estate value;
- to know if any rental contract has been declared (although there is a possibility that the owner did not submit a copy to the local tax office).
The properties are enrolled in accordance with a number. These numbers, assignment of articles, are called "matriciais". The document that demonstrated the fiscal situation of the property is named "Caderneta Predial". We can have two types of Cadernetas Prediais: Urban Caderneta Predial and Rustic Caderneta Predial.
City Council
It is also possible to go to the City Council in order to check if the property is licensed (housing, commerce or other) or if development is planned.
Unit-holders Association
If it is a flat you are about to buy, the following information could be obtained from the unit-holders association:
- the management and service cost;
- if there are any outstanding payments;
- the unit-holders association's regulations.
How much time does it take to make due diligence?
The timing depends on the information required and on the property's location, but due diligence normally takes between two and four weeks.