Contemplation is when you, the client, are entitled to the property through the consortium . It works like this: after you run a consortium and start paying for it, you will enter into a kind of “group” with other people who pay the consortium as well. Contemplation occurs with the letter of credit , which is nothing more than an instrument issued by the bank that will show what value you have to buy the house or apartment, being able to pick up the keys and leave for the change.
There are two ways to be considered:
1 – Draw : Through the monthly drawing of the letter of credit that takes place between the members of the consortium. Finally, all will be contemplated. The number of sweepstakes varies according to each administrator and the number of members.
2 – Lance : If you want to anticipate your letter of credit, you can buy it through an “auction”. All members of the group can bid for contemplation, and the highest bidder takes.
A property contemplated, therefore, is one that has already been made available by the administrator of the consortium through a lottery or bid.
Some documents are needed in the contemplation phase, and may change from administrator to administrator. The most common are usually CPF, RG, Birth Certificate, proof of current residence, work permit, last receipt of salaries / wages and income tax return. Such documents are important for both credit analysis and collateral analysis.
After the draw of the letter of credit, the money does not go to the account of the contemplated one. After buying it, it is deposited directly into the account of who is selling the property. According to the Central Bank of Brazil , supervising the consortium administrators, this is a method of making the consortium a way to acquire a property (property or vehicle) and not the money itself. If the recipient wants the money, it is necessary to pay all the remaining installments and still wait a period of 180 days.
No problem if the customer does not want to use the letter of credit immediately, he has until the end of the consortium to carry out the purchase of the good.
It is important to remember that the property acquired with the letter of credit remains in the name of the administrator of the consortium until the discharge of all plots. Therefore, even after contemplation, payment must be made up to the time stipulated in the contract.