Despite not being so common in our country in relation to other means, the public deed of mortgage is an extremely valid option in protecting the guarantee of payment of a debt. It may seem bureaucratic, but the process is very simple.
This is the way to get money, whether to invest in a business, to pay off debts, or to buy another property , which only requires the property to be in your name. Carrying out the deed of this loan is very important to ensure its validity.
With that in mind, we will show you, in this post, everything you need to know about the functioning of the Statutory Warranty Of public deed with mortgage guarantee. Check out our content below!
How does the mortgage work?
A mortgage, according to the Brazilian Civil Code, is a real right in which a debtor grants a creditor a property he owns, so that this asset responds to an eventual debt, if that individual is unable to pay it.
Thus, the property remains in the debtor's possession and is used only as a tool to ensure that the obligation agreed between two parties will be duly fulfilled. If not, the asset will be transferred to the creditor.
The property documents must undergo a detailed analysis by the financial institution, which will offer the loan, and can carry out an on-site inspection. After these formalities, the interested party will be able to claim the credit.
Usually, a mortgage is used in cases of people who need a large amount of money, either to pay off high debts, or to buy a more expensive property, or, in the case of entrepreneurs who need more resources, to move their business. .
When can this be done?
It is essential that the person interested in mortgaging an asset observes whether the property can go through this process. According to the law, residential, industrial and commercial properties can be mortgaged.
Furthermore, it is interesting to highlight the different types of mortgages that exist. Look:
- Judicial mortgage: is characterized by a court decision that determined the mortgage of a specific property. Subsequent registration in a notary's office is essential;
- conventional mortgage: needs to be registered at a notary's office, attesting that the obligations established in the contract will be fulfilled;
- legal mortgage: in this case, it is not necessary to register with a notary.
The law also allows the property owner to trade the property with another party, even if it is mortgaged. In this case, the person who buys the property will know that he is stuck with the seller's debt solution. Thus, it is a practice that generates insecurity for creditors.
What are the advantages of making a public deed with a mortgage?
The mortgage can only be duly constituted after its registration at the Real Estate Registry Office in which the property is registered. Two of the relevant points of this act are the protection and security that the creditor and debtor will have of the agreed business, since this document becomes public faith, which guarantees the veracity of the information in a legal way.
In this way, the public deed with mortgage is extremely necessary to give validity and formalize the legal act required by law, providing greater protection for the business.
If the creditor wants to take the debtor's asset in an eventual case of default, he must file a lawsuit with the Judiciary, unlike the fiduciary alienation, in which the creditor can use an extrajudicial auction.
The mortgage can be extended for a period of up to 30 years after signing the deal, upon agreement of both parties. In addition, the creditor can request the property of any person, in cases where the debtor no longer has the property.
Another advantage of this act, for the creditor, is that, in situations of poor conservation of the mortgaged property properly formalized in public deed, the debt may mature in advance, with the debtor being summoned to repair or replace the mortgaged property.
What documents are required for this process?
People must prove their identity by RG and the ownership of the assets to be mortgaged, through registration.
Regarding the costs to carry out the public deed of mortgage on a property, we can highlight:
- deed at Notary's Office: depends on the cost of the property and the State (a deed in SP has a different value than a deed in RJ, for example);
- registration at the Real Estate Registry Office: what has been said about the costs of the Notary's Office applies here.
Therefore, the importance of public deed with mortgage guarantee is undeniable, and this process can be a great solution for debtors who honor their obligations, own a property and, at the same time, need money. For creditors, this registration is a sign of protection and a greater guarantee of compliance with the points established in the contract.
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