What’s the difference between a deed and a purchase and sale agreement?

Short answer: The purchase and sale agreement formalizes the deal between the parties, but it doesn’t transfer ownership. The public deed is the document executed at a notary office that, once registered at the Real Estate Registry Office, legally transfers the property into the buyer’s name.

What the purchase and sale agreement is

The purchase and sale agreement (or promessa de compra e venda) is the first document signed between buyer and seller. It records the agreed price, payment method, timelines, and terms of the transaction. It’s a two-way commitment — both parties are bound to follow through on what was agreed.

Important: the purchase and sale agreement does not transfer ownership of the property. You can have a signed contract and still not be the legal owner.

What the public deed is

The purchase and sale deed is a document executed by a notary (cartório). It formalizes the transfer of ownership publicly and with notarial authority. For properties valued above 30 times the minimum wage, a public deed is legally required (art. 108 of the Civil Code).

But note: the deed alone doesn’t make you the owner either. The final step is registering the deed at the Real Estate Registry Office. Only after registration does the property legally pass into your name.

Step-by-step path to ownership transfer

1. Negotiation and signing of the purchase and sale agreement
2. Payment of the earnest money deposit (arras), if agreed
3. Execution of the public deed at the notary office
4. Payment of ITBI (the real estate transfer tax) to the city
5. Registration of the deed at the Real Estate Registry Office
6. Issuance of a new title certificate (matrícula) in your name — you are now the owner

Practical example in Florianópolis

A buyer signs a purchase and sale agreement for an apartment in Trindade in January and pays a 20% deposit. The deed is executed in March, after financing approval. Registration happens in April. From registration onward, the property’s title certificate lists the buyer’s name — and any rent (if there’s a tenant) now belongs to them.

What about bank financing?

When financing is involved, the bank requires the financing agreement to be registered along with the deed. The property remains pledged to the bank until the loan is paid off — recorded on the title certificate as a fiduciary guarantee (alienação fiduciária).

Related questions

• What is ITBI, and who pays it?
• What documents are required to buy a property?
• What is an occupancy permit (habite-se), and when is it required?

Want to understand each step of the purchase in more detail? Talk to a Regente agent.