Property transcription: what it is, why it is important, and how to regularize it

Real estate transcription is an essential process within property registration. It involves registering a deed or document that transfers, encumbers, or modifies rights to a property . This registration is carried out at a notary's office, more specifically at the Real Estate Registry Office , and ensures the publicity and legality of real estate transactions, providing legal security for both buyer and seller.

In this article, we'll explore in detail what property transcription is, how it works, why it's so important, the costs involved, and other relevant points on the topic.

What is property transcription?

Real estate transcription is the formal act of registering a title or document that demonstrates the transfer of rights to a property . This registration is made at the Real Estate Registry Office , ensuring that the transaction is public and legally recognized. Transcription is essential to prove ownership of a property and avoid fraud or legal disputes.

Before the Public Records Law (Law No. 6,015/1973) came into effect , property transcription was the only method of recording ownership of a property. After this law, transcription was replaced by property registration , a more modern and efficient system for recording ownership and changes in property ownership.

Difference between transcription and property registration

Although they have similar purposes, property transcription and property registration are not the same. The main difference between them lies in the timing of their implementation and the type of information they record.

1. Property transcription: Refers to the old registration system that was in effect until the enactment of Law No. 6,015/1973. It was the method used to record property purchases and sales, done through a transcription book at the notary's office. This system was not as efficient as the current one, as it did not present the property's complete history in a single document.
2. Property Registration: Implemented by the Public Records Law, the registration unifies all information related to the property into a single record, such as its characteristics, ownership history, debts, easements, and other related obligations. Registration facilitates consultation and ensures greater transparency in real estate transactions.

Importance of property transcription

Property registration is vitally important in real estate transactions, especially for older properties . It ensures that ownership and possession of the property are legally recognized, securing the buyer's rights to the acquired property.

Without transcription or registration in the property registry, a real estate transaction may be considered invalid under the law , which can lead to disputes, fraud and even the loss of the property.

Furthermore, transcription has effects on several aspects, such as:

1. Legal security: Only with the transcription or registered registration does the buyer have full guarantee of possession and ownership of the asset.
2. Publicity: The transcription makes the ownership of the property public, allowing anyone to see who is the legal owner of the property.
3. Priority: In the event of a dispute over a property, the transcription guarantees priority to whoever registered the title first.

How does the property transcription process work?

The property transcription process involves several steps that are carried out at the Property Registry Office. Here are the main phases:

1. Public deed of purchase and sale: The property transaction must be formalized through a public deed, drawn up at a notary's office, in the case of a purchase and sale, donation, or other transfer of ownership. This document formalizes the intentions of the parties involved in the transaction.
2. Submission of the deed to the Real Estate Registry Office: After the deed is drawn up, it must be taken to the competent Real Estate Registry Office, where it will be transcribed or registered, depending on whether the property is old (transcription) or has already been registered (property registration).
3. Transcription Registration: The registry office will analyze the document and check for any pending issues or irregularities. Once approved, the registry office will transcribe it into the property registry. If the property is already registered in the registration system, the property history will be updated.
4. Delivery of the transcription or registration certificate: After the process is completed, the registry office delivers a transcription or registration certificate to the new owner, confirming the legality of the transaction and the new ownership registration.

Costs involved in the process

The property registration process, like the registration process, involves several costs that must be considered during a real estate transaction. The main costs include:

Deed costs: The cost of the public deed varies according to the property's sales price and the notary fees. The cost is proportional to the negotiated value.

1. Registration Fees: Transcription or registration at the Real Estate Registry Office also incurs fees, which are calculated based on the property's value. These fees are set and vary depending on the state or municipality where the registry office is located.
2. Real Estate Transfer Tax ( ITBI ): ITBI is a municipal tax levied on the transfer of real estate, collected by the local city hall. The ITBI amount also depends on the property's value and can vary from city to city.