How does the sale of a property financed by Caixa work?


Selling a property financed by Caixa Econômica Federal is a process that involves several important steps and considerations for both the seller and the buyer. By understanding the steps involved in this process, both sellers and buyers will be able to conduct their transactions more safely and efficiently.

How the sale of a property financed by Caixa works

Buying a property is one of the most significant steps in many people's lives. It's an investment that requires planning, research and often the help of financing to make the dream of home ownership possible.

In Brazil, Caixa Econômica Federal is one of the most prominent financial institutions offering real estate loans, making it a popular choice for those looking to purchase a home. However, understanding how the sale of a property financed by Caixa works is essential for both sellers and potential buyers.

The Role of Caixa Econômica Federal in Real Estate Financing

Caixa Econômica Federal plays a crucial role in the Brazilian real estate market, offering various lines of credit to finance the purchase of real estate. From the "Minha Casa, Minha Vida" program to specific financing for used properties, the institution acts as a primary source of funds for those wishing to buy a house or apartment.

The loans offered by Caixa are often chosen for their easy conditions, such as competitive interest rates, extended terms and the possibility of using the FGTS (Severance Indemnity Fund) as part of the payment. These benefits make financing through Caixa an attractive option for many Brazilians.

The Process of Selling a Financed Property

The process of selling a financed property, especially when it involves institutions like Caixa Econômica Federal, has some particularities that demand special attention from both the seller and the buyer.

1. Analysis of the financing situation

Before starting the process of selling the property, it is crucial that the seller carries out a thorough analysis of the financing situation with Caixa Econômica Federal. This step is essential to ensure that the transaction takes place transparently and free of any problems that may arise due to financial or bureaucratic issues.

  • Checking the outstanding balance: One of the first steps in analyzing the status of the loan is to check the outstanding balance. This is important to determine the amount that still needs to be paid to Caixa in order to pay off the loan.
  • Regularity of installments: The existence of overdue payments can complicate the sale process and even make it impossible. If there are any outstanding installments, the seller must ensure that the payments are settled before proceeding with the transaction.
  • Pending issues and restrictions: Another important aspect to consider when analyzing the financing situation is any pending issues or restrictions that may exist. This includes issues such as the existence of unpaid debts, protest notices or legal actions related to the property.
  • Communication with Caixa: If any pending issues or irregularities in the financing are identified during the analysis, it is essential to communicate promptly with Caixa Econômica Federal. The financial institution will be able to provide specific guidance on how to regularize the situation and proceed with the sale of the property.

2. Property valuation

Property valuation is a crucial stage in the sales process, as it directly influences the price at which the property will be sold. In addition, an accurate and detailed valuation can attract more interested parties and facilitate negotiation.

  • Checking the Market Value: Initially, the owner should seek the help of a qualified professional, such as a real estate agent, to carry out an appraisal of the property. This specialist analyzes various factors, such as location, size, state of repair and specific characteristics of the property.
  • Importance of Accuracy: It is essential that the valuation is accurate and reliable, as an overestimated value can put buyers off, while an underestimated value can result in a loss for the seller. It is therefore important that the broker uses appropriate methods and tools to carry out an objective and impartial valuation.
  • Established Standards and Criteria: In the case of properties financed by Caixa Econômica Federal, it is important to note that the bank has specific standards and criteria for evaluating properties. These criteria may vary according to the type of property and the region where it is located.
  • Transparency and Documentation: During the process of how the sale of a property financed by Caixa works, it is essential to guarantee the transparency and veracity of the information provided about the property. 
  • Periodic Review and Update: Finally, it is important to emphasize the need to review and update the property valuation periodically. The market value of a property can vary over time due to various factors, such as changes in the economy, appreciation of the region or the condition of the property itself.

3. Announcement and negotiation 

With the property appraised and the documentation in order, the next step is to advertise the sale. This can be done through real estate agencies, websites specializing in property sales or even through social networks.

During the negotiation process, it's important to be prepared to answer questions from potential buyers and negotiate price and payment terms.

4. Transfer of financing

The transfer of financing is an essential procedure when we talk about how the sale of a property financed by Caixa works. This process involves a series of steps and requirements that need to be met by both the seller and the buyer.

This process involves a series of steps and requirements that need to be met by both the seller and the buyer.

  • Approval from the Financial Institution: First of all, it is necessary to obtain approval from the financial institution responsible for the financing, which in the case of Caixa Econômica Federal, is Caixa itself. Before anything else, the buyer needs to pass a credit analysis and meet the requirements set by the institution in order to take on the financing of the property.
  • Necessary documentation: In order to start the transfer process, it is necessary to gather all the documentation required by the financial institution. This may include copies of personal documents, proof of income, proof of residence, among others.
  • Buyer's Credit Analysis: The buyer will then have to undergo a credit analysis in order for the transfer of the loan to be approved by the financial institution. The purpose of this analysis is to verify the buyer's financial capacity to pay the loan installments.
  • Signing the Transfer Contract: Once the financial institution has approved the transfer of the loan and all the documents are in order, it's time to sign the transfer contract. This contract sets out the conditions of the transfer, the rights and duties of both the seller and the buyer.
  • Completion of the Transfer: Once the transfer agreement has been signed and all the necessary fees and taxes have been paid, the transfer of the financing is completed. At this point, the buyer officially assumes responsibility for financing the property.

How long Caixa releases the financing money to the seller

The time it takes Caixa Econômica Federal to release the financing money to the seller can vary according to a number of factors, and it is important to understand these aspects in order to manage expectations during the process of selling a financed property.

  • Documentation analysis: First of all, before releasing the financing funds, Caixa carries out a thorough analysis of the documentation related to the sale of the property. 
  • Property appraisal: Caixa also carries out a new appraisal of the property before releasing the funds. This is done to ensure that the value of the property is in line with the amount financed.
  • Signing documents: Once the documentation analysis and valuation of the property have been completed, both the seller and the buyer need to sign the necessary documents to formalize the sale of the property. These documents include the contract of sale, the public deed and other legal instruments related to the transaction.
  • Caixa's internal procedures: In addition to external procedures, the release of funds is also subject to Caixa Econômica Federal's internal procedures. This includes checking all the data and information related to the transaction.
  • External factors: Finally, it is important to consider external factors that can influence the time it takes to release funds, such as national holiday, strikes, technical problems with Caixa's systems, among others.

What comes first payment or deed

When it comes to buying a property, it's common to have doubts about which procedure comes first: the payment or the formalization of the deed. Both are essential steps in the process of buying a property and are interlinked.

Before any payment is made, the deed, the legal document that formalizes the transfer of ownership, is drawn up by a notary public. This stage is crucial, as it gives legal certainty to the transaction, ensuring that the buyer becomes the rightful owner of the property.

Once the deed has been formalized, the next step is to pay for the property. In general, part of the price is paid when the sales contract is signed, as a down payment. The rest is paid later, often with the buyer's own funds or through bank financing.

Once full payment has been made, the deed is taken to the Real Estate Registry Office to be duly registered. This registration is essential to give the transaction publicity and legal effectiveness, making it valid vis-à-vis third parties.

Formalizing the deed before payment is a common and recommended practice, as it guarantees legal certainty for both parties. It allows all the conditions of the transaction to be duly established and recorded, avoiding possible future conflicts.

Reversing the natural order and paying before the deed is formalized can lead to some risks for the buyer. Without a duly registered deed, there is no guarantee that the seller will fulfill his part of the agreement or that the property has no legal issues that could affect its purchase.

In short, although the sequence may vary in specific cases, in general, the deed of the property precedes full payment.

How much does it cost to register a property

Registering a property at the registry office is a fundamental step in the process of buying and selling property, as it gives legal validity to the transaction and guarantees legal certainty for both the buyer and the seller.

The costs involved in this registration can vary depending on different factors, such as the value of the property, the region where it is located and the fees charged by the registry office.

Firstly, emoluments are the fees charged by the registry office for registering the property. These fees are established by law and vary according to the value of the property and the region where it is located.

Generally, fees are calculated based on a percentage of the total value of the property, and vary according to the fee schedules established by the regulatory bodies.

In addition to the emoluments, the buyer must also pay the Real Estate Transfer Tax (ITBI). This tax is levied by the city hall of the municipality where the property is located and is levied on the sale value of the property or on the value of the transaction, whichever is greater.

In addition, apart from the emoluments and ITBI, there may be other fees and costs associated with registering the property at the registry office. These may include negative certificate fees, construction registration fees, notarization fees, among others.

It's important to note that property registration costs can vary significantly depending on the region where the property is located. In higher-value areas, the emoluments and ITBI tend to be higher, reflecting the value of the property itself and the fees set by the local authorities.

When the property becomes the buyer's

The moment a property becomes legally the buyer's is a crucial milestone in the process of how the sale of a property financed by Caixa works. It is usually associated with the formalization of the public deed of purchase and sale, as well as registration with the Real Estate Registry Office.

The first step in transferring ownership is for the buyer and seller to sign a sales contract. This contract sets out the terms and conditions of the transaction, including the price, payment terms, the responsibilities of each party and other relevant clauses.

After registration at the Real Estate Registry Office, a new property registration is issued, which reflects the transfer of ownership to the buyer. This registration is an official document that proves ownership of the property and contains all the relevant information about the property, such as description, boundaries, encumbrances and any restrictions.

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April 3rd, 2024