Drawer Contract: Risks and How to Obtain a Deed

Drawer contract risks affect millions of Brazilians who bought properties without a public deed. The private document, signed between buyer and seller without notary registration, does not transfer property ownership. Whoever buys this way has a paper. Not the property itself.

The problem especially affects those who moved to Florianópolis and bought a house or land in a hurry, trusting the seller’s good faith. The irregularity seems harmless until a levy appears, an inventory dispute arises, or a financing attempt is made.

• The drawer contract does not appear in the property registration at the Real Estate Registry
• The seller remains as the legal owner before third parties and the courts
• Any creditor of the seller can levy the property, even after the informal sale

Below, understand the concrete risks and the three legal paths to convert this contract into a definitive deed.

What is a drawer contract and why does it pose real risks?

The risks of a drawer contract begin in the document’s very nature. It is a private instrument of sale and purchase that the parties sign without going through the notary office. It proves the intention to buy, but does not have effect before the Real Estate Registry.

In Brazil, real estate property is transferred only with the registration of the public deed in the property registration record (art. 1.245 of the Civil Code). Without this registration, the buyer holds possession — not ownership. Understand the difference between property registration, deed, and possession.

30 million households without a deed in Brazil

Data from IBGE and the Ministry of Cities indicate that approximately 30 million households in Brazil do not have a registered deed (Source: gov.br — Green and Yellow House Program). This represents nearly half of the country’s residences.

• In Florianópolis, the practice is concentrated in neighborhoods like Ingleses, Campeche, and Rio Vermelho
• Land in areas of urban expansion accumulate decades of successive informal sales
• Many drawer contracts have passed through two or three generations without ever reaching a notary

What are the 6 risks of keeping a drawer contract?

Each risk below is a situation documented in Brazilian case law. None depends on bad faith. It is enough that the informal contract exists for the buyer to be exposed.

Risk 1: loss of the property due to seller’s debt

If the seller accumulates labor, tax, or bank debts, creditors can levy the property. In the registration record, he still appears as the owner. The drawer contract buyer must file third-party objections to try to protect possession — a lengthy judicial process with no guarantee of success. A prior real estate due diligence identifies these situations before purchase.

Risk 2: double sale of the same property

Nothing prevents the seller from signing another drawer contract with a second person. The formal owner can even execute a public deed to a third party. Whoever registers first in the property registration record takes the property — the drawer contract buyer is left only with a right to compensation.

Risk 3: an inheritance that ignores the buyer

When the seller dies, the property enters the estate as an asset. The heirs have no automatic obligation to recognize the drawer contract. The buyer must intervene in the inventory process or resort to the courts.

Risk 4: inability to finance

Banks require an updated registration record and registered deed to grant financing or accept the property as collateral. See the documentation required for real estate financing. A property with a drawer contract cannot serve as real collateral — neither for the current buyer nor for a future one.

Risk 5: 30-50% devaluation on resale

Properties without a registered deed lose between 30% and 50% of market value at the time of sale. Informed buyers discount the cost and risk of regularization. Professional investors simply discard properties in this situation.

Risk 6: property tax and obligations without legal protection

The drawer contract buyer pays property tax, HOA fees, and utilities — but cannot use the property as collateral, cannot vote in HOA assembly as an owner, and cannot access tax benefits linked to registered property ownership.

How to convert a drawer contract into a public deed?

There are three legal paths to regularize your property. The choice depends on seller cooperation, document availability, and length of possession.

Path 1: deed with seller cooperation

The simplest path. The seller (or his heirs) appears at the notary office and signs the public deed of sale and purchase. Then the buyer takes this deed to the Real Estate Registry to register it in the property registration record.

• Cost: R$ 2,000 to R$ 8,000 (notary fees + registration + transfer tax)
• Timeline: 15 to 60 days
• Requirement: seller cooperation and complete documentation
• Works when both parties maintain good relations and the seller is alive and located

Path 2: compulsory adjudication — Law 14.382/2022

When the seller refuses to appear or cannot be located, extrajudicial compulsory adjudication solves the problem directly at the notary office. Law 14.382/2022 created this modality, which waives judicial proceedings.

The buyer presents to the Real Estate Registry:

• Original drawer contract with recognized signature (or equivalent proof)
• Proof of full price payment
• Negative certificates from the seller
• Extrajudicial notice to the seller with a 15-day deadline to contest
• Cost: R$ 3,000 to R$ 10,000 (notary fees + legal fees)
• Timeline: 3 to 8 months
• Advantage: does not require seller agreement and is resolved at the notary office
• The seller may contest, and in that case the process proceeds to judicial proceedings

Path 3: extrajudicial adverse possession at the notary office

For those who have occupied the property for more than 5 years continuously, peacefully, and with animus domini (intent to own), extrajudicial adverse possession offers a robust alternative. The procedure takes place at the Real Estate Registry, without the need for judicial action.

• Cost: R$ 5,000 to R$ 15,000 (lawyer + notary fees + appraisals)
• Timeline: 6 to 18 months
• Requirement: peaceful and continuous possession for the legal period (5, 10, or 15 years according to the modality)
• Requires a notarial deed executed at the notary office proving time and form of possession

How much does each path cost and how long does it take?

The table summarizes the three paths to facilitate comparison:

• Direct deed: R$ 2,000 to R$ 8,000, 15 to 60 days, requires seller cooperation
• Compulsory adjudication: R$ 3,000 to R$ 10,000, 3 to 8 months, waives cooperation (Law 14.382/2022)
• Extrajudicial adverse possession: R$ 5,000 to R$ 15,000, 6 to 18 months, requires minimum possession period

To compare detailed values, consult how much it costs to regularize a property in Florianópolis. The transfer tax (ITBIITBIVer tudo →) applies to paths 1 and 2. In adverse possession, there is legal controversy — some municipalities charge, others exempt. In Florianópolis, the Municipality charges transfer tax on adverse possession (2% rate on assessed value).

• A lawyer is required in all paths
• Legal fees vary according to complexity and property value
• Properties with long ownership chain (multiple successive drawer sales) increase process costs

Frequently asked questions about drawer contracts and risks

Does a drawer contract have legal validity?

Yes, as a private instrument it creates obligations between the parties. However, it does not transfer property ownership before third parties. The buyer holds a personal right (credit), not a real right (property).

Can I register a drawer contract at the notary?

Not directly. The Real Estate Registry requires a public deed for properties over 30 minimum wages (art. 108 of the Civil Code). The drawer contract serves as proof of payment, not as a registrable title.

Does extrajudicial compulsory adjudication actually work?

Yes. Law 14.382/2022 regulated the procedure and notary offices across Brazil are already processing requests. CNJ Provision 150/2023 details the procedure. In Florianópolis, the Real Estate Registries of the 1st and 2nd Circumscription accept the request.

How long will it take for me to lose the property if the seller has debts?

The levy can happen at any time. It is enough for a creditor to locate the property in the registration record under the seller’s name and request a court order. The drawer contract buyer only finds out when he receives the summons — and at that point, he must prove possession in court. Evaluate the risks of buying property with possession in Florianópolis.

Get out of the drawer contract

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