If you are thinking of buying a property and do not have all the money to trade in sight, during your research, you may have wondered how the real estate consortium works, right?
This type of mortgage is usually very advantageous for those who want to dilute the repayment longer, because it does not have the high interest rates embedded in the installments of a loan. But do you know what the real estate letter of credit is?
It is important to understand what this means to improve planning and make a better decision about home ownership. Therefore, in this post, we will explain what is the real estate letter of credit, what its advantages and how it works in practice. Come on?
After all, what is the real estate letter of credit?
The real estate letter of credit is a document issued by the consortium administrator that has the value of the property to be purchased. With it, you can use the corresponding money as you see fit, as long as the purpose is to acquire a property, which is the object of the contract with the consortium.
All regulations regarding the real estate letter of credit are applied following the rules of the CountOn Bank, according to Law No. 11,795 / 2008, which guarantees total security for operations.
What are the advantages of real estate letter of credit?
With the real estate letter of credit, you can buy the property in the conditions you find most appropriate. It can be new or used, apartment, house or land, and there is the possibility of acquiring the good in the city or in rural areas, for work, rent or housing. Another benefit is that the value of the property does not have to be exactly that of the letter of credit, which guarantees the buyer more freedom in negotiating with the real estate or the builder.
Another way to use the real estate letter of credit is to purchase building materials if you prefer to build the house. It is also valid for renovations and extensions and even for decoration of the property.
Finally, with the document in hand, you will be able to save on the purchase as you will have the cash amount for the payment. This offers better possibilities to get good discounts. In addition, there will be no collection of taxes such as IOF (Tax on Financial Operations), as the amount will not pass through the bank.
How does the letter of credit work in practice?
A letter of credit is a valuable title, a way of proving to the seller that you have that money to make the purchase. See how the purchase of property with letter of credit works:
- the consortium administrator issues the letter of credit after contemplation with the amount corresponding to the contract, stating the period within which you have the right to use it;
- You research the property you want to buy and then you can start the negotiation, providing for discount on payment, financing of the remaining amount (if the credit is not enough) etc .;
- The letter of credit can also be used to pay off a previous mortgage;
- When closing the deal, it is enough for the financial institution to issue the document.
Only? Understand what is a property letter of credit, what are the advantages of using this feature and how to do when withdrawing yours? When buying a real estate property, consider the possibility and advantages of making a consortium to have more security and peace of mind to plan this change financially.
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