Understand How Mortgage Financing Works

Economic instability (rising interest rates and falling prices) has caused many people to return to the homeowners the real estate that they bought, in 2016 alone more than thirty-seven thousand units were returned, according to BREDINC. (Brazilian Association of Real Estate Developers), there was also a 60% increase in cancellation actions between the first quarter of 2017 and last year. The return procedure is called real estate cancellation. Futher reading at http://dmsband.org

If you are one of the victims of the crisis or are interested in knowing about the process that involves the breach of real estate financing agreement, read on. Keep reading!


What is real estate cancellation?

real estate

Contractual termination is the act of closing a legal relationship established between the parties (buyer and seller). Thus, when one of the parties intends to terminate the contract, it must make a formal notification to the other party and prepare the contractual termination, this document establishes the conditions of termination of the partnership signed. Among the conditions that need to be determined, for example, is the expected return of amounts paid, the form of return, the fine values, etc.

Real estate cancellation, specifically, happens when someone who intended to buy a property in the plant gives up the deal after having already signed the contract with the developer.


What are the consumer rights in the cancellation of real estate financing?

What are the consumer rights in the cancellation of real estate financing?

It is important to point out that the cancellation of real estate financing in the plant is not only requested when the buyer is no longer able to pay for the property – although this is the main reason in most cases – it is also an appeal in cases of late delivery of the property. units by the construction company. However, know your rights in this situation:

  • Even customers who have arrears may apply for cancellation, it is only necessary that the request be formally filed (in writing).
  • Even if the cancellation request is for inability to comply with the values ​​of the property, the consumer can not lose all the value invested in the property;
  • The buyer of the property can, and should, seek legal aid if the builder or developer refuses to accept the cancellation request, or if the withholding value is above the allowable amount.


What are the refund rules for cancellation?

home loan

It is the right of the buyer to receive part of the money invested in buying a property in the plant when the withdrawal part of it. The return of the values ​​follows two criteria, the first of which is directed to popular properties, as in the case of works under the Minra Casa Minra Vida program, in which case the builder may keep up to 10% of the total value of the property, as long as the value retained does not exceed 90% of what has already been paid by the buyer. The second criterion is for more expensive real estate, in which case the amount withheld may be up to 20% of the amount invested, the amount of the signal paid is also withheld.