If the other owner dies, what happens to the house?

For other real estate and/or credit-related issues, contact the real estate agency Casa no Minuto or the credit intermediaries of Poupança no Minuto and ensure appropriate support, at no cost. To understand what can happen to your property, read on.

In case of ownership.

In case the property was acquired without financing, and one of the owners dies, the portion of the house he owned will go to the closest relatives. This also applies if there is no will.

Thus, the law stipulated in the Civil Code is used to divide the property's inheritance among legitimate heirs. In this case, the legislation determines the following hierarchy among the heirs:

1. Spouse and descendants (children);

1. Spouse and ancestors (parents);

1. Brothers and their descendants;

1. Other relatives up to 4th degree;

1. State.

In other words, if the deceased was married and/or had children, they are the ones entitled to the real estate first. In case of no children, the right goes to the parents.

If there are no relatives up to the 4th degree to claim the right to the property, it is handed over to the State.

In case of home loan  

If the other property owner dies, in the case of a housing loan, they are protected by life insurance.

When contracting a home loan, banks always require you to take out life insurance in order to approve the loan and protect themselves in these cases. Therefore, in case of default due to the death or disability of the holder, the insurer guarantees the repayment of the debt to the bank.

For this, banks require this insurance to have certain basic coverages, such as coverage for accidental or illness-related death and coverage for Total and Permanent Disability - TPD (disability equal to or greater than 80% resulting from illness or accident). Then, you can choose coverage for Total and Permanent Disability - TPD (degree of disability equal to or greater than 60%, due to illness or accident). The latter is more comprehensive as TPD coverage implies a more extreme disability.

In any case, in the event of the death of one of the holders of the mortgage credit, due to the mandatory life insurance coverage, the repayment of the loan is guaranteed.

In case of lease

But what if the property in which the owner lived was leased? In this case, the lease expires and the property must be returned to the owner.

However, know that, as a spouse or descendant who also lived in the property together with the tenant at the time of death, has the right to the transmission of the lease.

To do this, you must send the landlord, within three months, a copy of the supporting documents for the transfer, such as the death certificate, marriage certificate for the spouse, and birth certificate for children.

If you do not do it within the established deadline, you may have to incur losses, but you are not prevented from carrying out the transmission.

In case of having more questions related to real estate and/or loans, contact the real estate agency Casa no Minuto or the credit intermediaries of Poupança no Minuto. We guarantee a close, free support service with the utmost professionalism and speed.