Safe Purchase Checklist: What to Check in the Incorporation Registration (RI) Before Closing a Deal in Itapema or BC

Purchasing off-plan property in Itapema or BC can yield returns of 5-10% annually for investors when proper document verification is conducted. The Incorporation Registration (RI) is vital, as it ensures the legality of the transaction and protects buyers from potential risks associated with unverified developments.

Why Is the Incorporation Registration (RI) Essential for Buyers?

The RI is a set of documents formalized at the Real Estate Registry Office, providing legal existence to the development. Without a registered RI, off-plan unit sales are illegal under the Real Estate Incorporation Law (Law 4.591/64). This guarantees that the land is owned by the builder and free of encumbrances.

Additionally, the RI ensures that the project has received city hall approval. It also guarantees that all technical specifications are contractual obligations rather than mere marketing promises. Buyers can trust that the contract they sign aligns with the one submitted for registry analysis.

What Are the 12 Critical Verification Points in the RI Checklist?

How Can I Confirm the Existence and Regularity of the RI?

The RI must be registered, not just filed. A filed RI has been submitted for analysis but lacks full legal validity. Builders must provide the RI registration number, not merely the filing number.

• [ ] RI Registration Number provided by the builder
• [ ] Confirmation of registration (not just filing) at the registry office

Contracts signed before the RI is registered expose buyers to legal risks. Builders cannot legally sell units before this registration.

• [ ] RI date prior to the date of signing your contract

Asset segregation is crucial for protecting the development's resources in case of the developer's bankruptcy.

• [ ] Asset segregation clause present in the RI

What Should I Verify About Land Ownership?

The land registration must confirm that the builder is the legal owner, free of encumbrances. Any existing mortgages must be clearly explained.

• [ ] Landowner = builder or SPE of the development
• [ ] No liens or judicial blocks on the land
• [ ] Existing mortgages explained (construction bank = normal)

For condominium developments, ensure the original land is subdivided correctly, specifying the ideal fraction for each unit.

• [ ] Ideal fractions specified by unit

What Approvals and Licenses Are Necessary?

A construction permit from the City Hall of Itapema or Itajaí is mandatory before construction begins. Lack of this permit can halt the project.

• [ ] Construction permit issued by the competent city hall
• [ ] Environmental license (if the land has environmental restrictions)

Permits have validity periods. Ensure the construction timeline aligns with the permit's duration to avoid complications.

• [ ] Permit validity covers the estimated delivery period

How Do I Ensure Specifications and Contracts Are Accurate?

The descriptive memorial must detail materials and finishes to prevent substitutions that lower quality. Vague descriptions can lead to significant discrepancies.

• [ ] Specifications for flooring, walls, frames, electrical and plumbing detailed
• [ ] Brands or minimum standards specified (no generic "or similar")
• [ ] Common areas and amenities fully specified

The sales contract must match the RI draft. Any more burdensome clauses in the contract are legally void.

• [ ] Contract compared with the RI draft: no more burdensome clauses
• [ ] Penalty for delay provided: 0.5% to 1% per month on the amount paid
• [ ] Termination clause compatible with Law 13.786/2018 (max. 25% retained)

Delivery deadlines and legal tolerance must be clearly defined in the contract to protect the buyer.

• [ ] Delivery date specified in the contract
• [ ] Tolerance period: maximum 180 days
• [ ] Penalty for delays beyond tolerance provided and quantified

What Certificates Should the Builder Provide?

Builders must have updated negative debt certificates. Active debts can indicate financial instability, increasing the risk of construction delays.

• [ ] Negative certificate PGFN (debts with the Union)
• [ ] Active CNPJ with no pending issues at the Federal Revenue
• [ ] Absence of judicial recovery processes at TJSC

Completion insurance is not mandatory but offers significant security. It ensures construction completion even if the developer faces bankruptcy.

• [ ] Completion insurance verified (if available)

Can I Perform This Checklist Remotely?

Yes, remote verifications are possible using online tools. A local attorney in Itapema typically charges 0.5% to 1% of the property's value for comprehensive due diligence.

Buldora's service includes verification of critical RI points for all recommended developments, ensuring peace of mind for investors.

What Are the Risks of Not Verifying the RI?

The 12 points of this checklist can be verified in 1 to 3 business days with the correct sources. Failing to verify can result in losing the entire down payment and installments, either through a termination process or halted construction.

A secure purchase relies on thorough document verification, not luck or trust in the builder.

"Thorough verification of the Incorporation Registration is essential for mitigating risks in real estate investments. It is the foundation of a secure purchase." — Raphaela Rolim, Co-founder and Chief Strategist at Buldora Invest