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Real estate development is a procedure that includes designing, building, and promoting units within a project, like residential or commercial structures. This approach enables the sale of real estate before the project is finished.
The integrator is in charge of overseeing every aspect of the project, from obtaining the land to handing over the completed units, collaborating with builders, architects, engineers, and brokers.
It is essential for individuals interested in investing in real estate or buying property through incorporation to have a good grasp of how the process works.
This article will outline the procedure, its stages, and key factors to keep in mind.
What does real estate incorporation entail?
Real estate incorporation involves the development and promotion of real estate projects.
This procedure enables the sale of housing or commercial units before the project is finished, providing financial stability for all parties.
Brazilian law No. 4.591/1964 governs the industry, providing guidelines for the protection of buyers, developers, and investors.
Who is the person responsible for incorporating in this process?
The incorporator is the individual or entity that initiates the business.
He is in charge of obtaining the land, creating the architectural design, registering the property incorporation, and confirming the construction’s feasibility.
You can either take direct action or enlist specialized firms to carry out the tasks.
You also need to consider purchasers and make sure the delivery timeline is met.
How does the process of real estate integration function?
The real estate incorporation process consists of four primary stages.
- The employer assesses the project’s financial viability and facilitates the collaboration between the landowner and the builder.
- Builder: in charge of carrying out the tasks.
- Landowner provides the location for the establishment to be constructed.
- Buyers fund the building of properties by signing agreements and making early payments.
Developers typically obtain land and frequently exchange some units as a form of payment to the landowners.
They oversee the builders’ tasks, manage project development, and promote the unsold units to secure financial support for the project’s ongoing operation.
A builder can act as a business entity, but the process of incorporation includes four distinct and clearly outlined functions.
Creating a real estate company in a systematic way
The real estate incorporation process requires strict adherence to multiple steps to guarantee the legality and feasibility of the venture.
We have outlined the key steps involved in a real estate development process, from project design to unit delivery.
Project feasibility assessment
The initial stage involves conducting a feasibility assessment that comprises field research, examination of local laws, market needs, and expenses.
This phase assesses if the business can remain financially stable by taking into account elements like its location, development possibilities, and projected ROI.
Land acquisition
After ensuring it is possible, it is important to purchase the land for the project’s construction.
The incorporator needs to verify the property’s legal status, such as current registration, absence of debts or legal issues, and ensure that the land use permits the intended construction.
Architectural design progress
The acquired land will be used for developing the architectural design as well as the accompanying projects like structural, electrical, and hydraulic.
These projects need to adhere to the technical standards and requirements of public authorities in order to receive the necessary approvals.
Regularizing
The project must be presented to the appropriate public authorities, like the prefecture and fire department, in order to acquire permits for construction equipment and other essential licenses.
Environmental, accessibility, and security standards are also satisfied during this phase.
Incorporation registration in real estate.
Before selling the units, the developer needs to record the real estate project in the property registry office.
It is essential to provide documents like the articles of incorporation, the authorized plan, the property registration, certificates of no debt, and the financial viability analysis.
Introduction and promotion of products
The incorporator can begin selling the units once they are officially registered.
Launching the project often involves marketing campaigns and collaborations with real estate partners.
Purchase and sale agreements must comply with the regulations outlined in the Civil Code and the Real Estate Incorporation Law.
Work implementation
The project must adhere to the predetermined physical and financial timeline.
The incorporator is in charge of overseeing the work’s progress, ensuring it meets project specifications, and addressing any unexpected issues that may arise during the execution.
Financial and operational oversight.
It is crucial to maintain tight financial control during work by monitoring cash flow, tracking the inflow of funds from buyers, and managing payments to suppliers.
The incorporator must also consider the buyers of the units, particularly when collective financing of the project is involved.
Living and forming a routine
After the work is finished, a technical inspection is conducted to confirm if the project was constructed according to the approved plans.
If all is in order, the incorporator needs to ask the municipality for a “habite-se,” which is a document allowing the lawful use of the property.
Construction and transportation of units
The developer needs to inspect the building at the property registration office to confirm its existence officially.
After this point, the units can be handed over to the buyers, who then gain legal ownership and the option to register the property under their names.
Regularization and after-sales
The incorporator may still have duties regarding technical support, fixing any construction issues, and resolving administrative matters even after the delivery.
Post-purchase monitoring helps enhance customer satisfaction and the company’s reputation within the market.
In summary
Real estate integration is a complex process that involves managing various stages, starting from acquiring the land to selling the units.
This approach enables businesses to come to fruition by bringing together entrepreneurs, developers, property owners, and customers.
The achievement of a company’s establishment relies on effective planning, financial viability assessment, and adherence to legal obligations. Each team member plays a distinct part in advancing the project in an organized manner.
Understanding the functioning of real estate incorporation assists investors and buyers in making well-informed decisions by considering the risks and opportunities at each step of the process.
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