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Legal analysis is a fundamental step in real estate financing. In it, the bank scans the documents presented by the parties (buyers and sellers) and also the property documentation. The objective is to identify possible problems that prevent the credit operation from going forward.

Are you about to undergo legal analysis? In this article, we will explain in detail how it works and answer your questions about deadlines and documents to be provided. We will also show what are the main pending issues that can be detected by banks in this type of assessment.

Throughout this text, you will find:

What is legal analysis in a mortgage loan?
When does the legal analysis of a property loan take place?
Is there a different review process for each institution?
What are the documents needed for legal analysis
Main questions about legal analysis
How does the legal analysis of a mortgage loan with Loft work?
What is legal analysis in a mortgage loan?

Before signing the contract, the bank will need to validate a series of documents and personal information of the parties involved, especially the buyer (the one who is seeking credit). It is for this, and to guarantee the security of the operation, that the legal analysis in a real estate financing is used.

Thus, each bank requests a list of documentation from the buyer. In general, personal documents (such as RG and CPF), birth or marriage certificates, proof of residence and others are included in the list.

From the property, a registration certificate is usually requested, as well as documents relating to the property’s IPTU payments. The seller also needs to provide the bank with paperwork, such as RG and CPF. That’s why it’s so important to look carefully at your bank’s list of requirements.

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When does the legal analysis of a property loan take place?

Legal review usually comes after the customer has passed the credit review. This initial analysis takes into account only the buyer’s ability to pay. The legal valuation, on the other hand, is deeper and more complex, and serves mainly to certify that the buyer can actually buy that property. And that neither the property nor the seller has any pending items preventing the sale.

Typically, banks also do a property valuation before looking at the parties’ documentation. The property is appraised by an engineering company hired by the bank. A technician goes to the property and assesses structural and market aspects to issue an appraisal report, with a fixed value for the property in question.

After the legal analysis, buyer, seller and bank proceed to signing the financing contract. It means that everything worked out and that you can buy the property you want. But remember: the money will only be released after this contract is registered at the notary’s office.

Is there a different review process for each institution?

Legal analysis follows a similar pattern across all financial institutions, but it is common for them to ask for different documents. According to Rafael Godoi, specialist in financing at Loft Cred, it is also common that the documentation required to sign a financing contract varies according to the county (region) where the property has its registration.

“There are very specific differences in relation to documents, but nothing that complex. The default for banks is: registration, buyer documents and seller documents. And documents from the Guarantee Fund (FGTS), if any. But a bank may ask you for a condominium certificate. Or, depending on the county, the registry requires some additional information. So, he needs to ask”, explains Rafael.

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What are the documents needed for legal analysis

In addition to forms with specific information requested by the bank (such as forms with personal data and health information), it is common for banks to ask for the following documents, according to experts at Loft Cred:

From the property:

Updated enrollment certificate (from the last 30 days)
Copy of the IPTU booklet/Certificate of tax status in relation to the IPTU
Contact the manager, if the property has an outstanding balance with another bank

From the buyer:

Personal documents (RG and CPF)
Marriage certificate (if married or in a stable union)
Personal documents of the person you are married to (if applicable)
Proof of address
Updated Contract and/or Bylaws (if the buyer is a legal entity)
Certificate of regularity of payment of FGTS (if legal entity)
Joint negative certificate of debts related to federal taxes and the Active Debt of the Union
Completed forms (according to bank requirements)

From the seller (

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