Decrease in the Fine for Termination – Follow the news of the bill that promises to improve the buyer’s life
The real estate buyer must feel secure in purchasing, or giving up, their purchase. Changing your mind is perfectly normal, as the process of buying a property can go through ups and downs. Therefore, legal processes are created and improved from time to time.
Recently, in May 2019, Bill of Law (PL) No. 3049/2019 was presented to the Chamber of Deputies. Basically, it changes the values of the fine applied by developers in case of cancellation or default.
This measure was proposed with the objective of making life easier for the real estate buyer and reducing the retention of developers on the value of the properties. Want to know more? In this text you will:
-? Learn about the new Bill No. 3049/2019 -? See the changes that occurred in Law No. 4591/1964 -? Follow the changes made in Law No. 13.786/2018 -? How the new law offers a new opportunity for the buyer
Bill – Learn about the new proposals of law nº 3049/2019
As previously stated, Bill No. 3049/2019 proposes changes to the law that is currently in force, the so-called Condominium Law (Law No. 4591/1964), to reduce the fines applied by developers to property buyers.
This in case of cancellation or default. In this scenario, the new PL proposes that the retention – by the developers – does not exceed 10% of the amount paid by the buyer.
In addition, the PL provides that, after legal deductions, including withholding due to a fine, the buyer will be entitled to a refund of these amounts. Also, these amounts paid to the developer must be monetarily adjusted based on an index established in the contract.
The deadlines are 30 days and in a single installment. This changes, for example, the current period provided for by law, which would be 180 days after the end of the contract. What gives buyers a new lease of life by refunding the amounts paid?
Distract Law – What changes with this year’s proposed law?
Currently, the Condominium Law (No. 4591/1964) is in force with amendments made by the Termination Law (Law No. 13.786/2018). In this case, the Cancellation Law authorizes a retention of up to 25%, by the developers, on top of the amount paid by buyers in case of cancellation or default.
In cases where the incorporation is subject to the allocation of assets, this retention may reach 50% of the amount paid. That is, in the best case scenario, if the proposal sent in May 2019 is approved, there will be a 15% reduction in this retention.
According to the understanding of the authorities of the judiciary sector, the retention percentage has been in accordance with the norms established in Law 13,786/18. Although higher percentages are allowed, this has been treated as abuse by developers.
Opportunity – Reduction relieves pressure on buyers
The project will be conclusively analyzed by some commissions. Among them: Commission on Economic Development, Industry, Trade and Services; Constitution and Justice and Citizenship, in addition to the Consumer Defense Committee.
The PL, while being processed by the decision-making bodies, brings positive changes to the increase in the number of investments in real estate, as the amount of retention has decreased, together with the fear and insecurity of potential buyers of the high amounts paid.
In an article published in the newspaper Dario do Ado, specialist in Real Estate Law Jiao Pedro Laves Pinto foresees changes and a good estimate for property buyers, if the law is approved.
“PL 3049/2019 brings more beneficial provisions to property buyers and, if approved by the Senate and sanctioned by the President of the Republic, it will certainly have effects on our economy, especially in the real estate sector”, says the expert.
How to seize the moment to invest in real estate
The investment opportunity in the sector grows in 2019. Only this year, the reduction in the Salic rate to 6% facilitated access to real estate credits. Since financial institutions pass on this drop in interest to their credits.
Another interesting fact, together with the drop in the Salic Rate and PL nº 3049/2019, is the value of properties that are equivalent in their categories. In other words, the price of new and used properties is practically the same.
Which leaves buyers with plenty of options for investments within the real estate market. Also, the ease of acquiring new properties has increased with the trend of reduced prices.
“The time to acquire real estate is great. The market is hot and offers excellent options for all types of budgets. If you are thinking about the future, it is better to run now and take advantage of the prices and conditions that the market offers today”, state Audubon specialists.