Purchasing Real Estate in Brazil, the Role of the Lawyer, Part 1.

by Ginny Naish It is essential that you engage the services of a lawyer when purchasing land or property in any country where you are not normally re...


It is essential that you engage the services of a lawyer when purchasing land or property in any country where you are not normally resident. Brazil is no exception, even though it has very strong consumer and title laws, the differences in language and terminology can result in misunderstandings that could damage your investment.

Obviously one of the main criteria in selecting a lawyer to act for you will be the sharing of a common language and experience of working with non-resident real estate transactions. The OAB, Brazilian Bar Association, has a register of accredited lawyers and they have a published scale of fees for the legal work they carry out.

The lawyer will be responsible for advising you on the reservation contract, purchase contract and the legal implications of these documents. With its consumer laws very much in favour of the purchaser, Brazil is a very safe environment in which to purchase property. Your purchase can be very swift if all of the correct documents are in place. With older properties or land your lawyer will have to collect all of the correct documents, which my take a little more time.

The type of service that will be provided to you by your lawyer will vary greatly and be dependent upon the type of real estate that you are purchasing. An off-plan apartment will have most of the required documents in place, as the documents will have been required for the planning permission process. In older country and beach properties, your lawyer will be required to make a far more extensive inspection of the documentation, as there may be issues with regard to ownership, as some older properties may not have registered their title.

The process of buying land is the same as property except that you will have a report prepared which will set out the borders and size of the land. The report will also give the urbanistic characteristics of the land stating what can be built on the land, as well as a detailed plan for inclusion in your title deeds.

When your lawyers have confirmed that the property is legally ready for sale, with all documentation in place, you will then sign the purchase contract known as, contrato de compra e venda. The contract details all of the information with regard to the purchase such as the seller, the buyer, description of property, price and so on. Importantly it also sets out the date that you can take possession of the property.

With the contrato de compra e venda signed by both parties and with the deposit paid, the contract becomes a legally binding document. The amount payable as deposit at this stage and the structure of payments until completion varies, particularly in the case of off plan property purchase as different developers offer different payment schedules and incentives.

In order to receive your title deeds, which ensure the property is legally yours, the property needs to be paid in full and the transfer taxes paid.

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