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The release of funds is the last step of a real estate financing. The one that allows you to complete your purchase and finally move to your new home. This moment requires some care, and it is important that every buyer understands very well how it works.

Therefore, we prepared this article to answer your questions about how this release of resources in a real estate financing works. We will show you what the banks’ requirements are for it to be done and what problems can arise at this stage.

Throughout this text, you will also find:

What is the release of funds in financing?
At what time during the negotiation does the bank approve the release of funds?
How long does it take for the bank to release the money?
Do I need a public deed for the bank to release the credit?
What issues might appear before releasing resources?
How does Loft Cred help you release funds for your mortgage?
What is the release of funds in financing?

The release of funds in a financing is the moment in which the credit that the bank agreed to grant in the contract is transferred to the seller’s account. With that, the purchase is completed. For this to happen, it is necessary that the registration of the contract with the bank has already been done at the competent real estate registry. We’ll look at these steps in more detail below.

At what time during the negotiation does the bank approve the release of funds?

In general, the bank releases the funds to the seller after the financing contract with the bank has been signed between the parties (seller, buyer and bank). Once this is done, the following steps must be taken to release the money:

Payment of Real Estate Transfer Tax (ITBI)
Registration of the financing agreement at the Real Estate Registry Office, with payment of notary fees
Return of the contract and sending the updated property registration certificate to the bank – these documents condition the release of credit
After all, what does a real estate registry do? Meet in the video above

After all these steps are completed, the bank transfers the credit to the bank account informed by the seller. If there is an error in this account number, the transfer will not be made. Therefore, it is very important that both buyer and seller pay attention to the data present in the contract.

How long does it take for the bank to release the money?

“When you deliver the original registration number and a copy of the contract to the bank, it will check and have up to 5 days to release (the money) in the seller’s account”, informs Rafael Godoi, specialist in real estate financing at Loft Cred. This deadline may not be met if an error appears in the bank account reported by the seller or made by the notary’s office.

Do I need a public deed for the bank to release the credit?

According to Rafael Godoi, this is one of the main doubts people have when it comes to the stage of releasing funds by the bank. But after all, is it necessary to make a public deed?

“A person who is used to buying in cash thinks he has to take the deed to the notary’s office. And no, it doesn’t. Just keep a copy of your registration and a copy of your contract. There is no deed”, explains Rafael Godoi.

At the end of the payment term, if you have zero balance, you will only need to get the settlement term from the bank and write off the chattel mortgage at the real estate registry.

What issues might appear before releasing resources?

According to Rafael, mistakes can happen and compromise this deadline. “I’ve already caught a notary office in the customer’s qualification (personal information)”, he recalls. When this happens, having the support of a real estate financing consultancy, such as Loft Cred, is essential. Our team resolves any errors with the bank or notary office without the customer having to worry.

“Loft Cred will monitor the release of that feature. If it is not released, our team will guide, contact the registry and ask them to regularize that document. Or, if there is no problem with the document and the bank delayed the release, we will charge the bank”, says Rafael. In other cases, the account entered is wrong – and Loft Cred corrects this information with the bank.

How does Loft Cred help you release funds for your mortgage?

Loft Cred, as a credit counselor, helps clients throughout the entire mortgage loan process free of charge. This support ranges from the initial stages, such as simulation and credit analysis, to the release of funds.

Once the contract is signed, our team is responsible for registering it with the competent Real Estate Registry Office. You only have to worry about paying the notary fees, and Loft Cred takes care of all the paperwork for you.

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