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

by Ginny Naish It is good practice to hire a lawyer anytime you are purchasing land or property outside of your home country as property purchases ca...


It is good practice to hire a lawyer anytime you are purchasing land or property outside of your home country as property purchases can become complex, even when you know the system. Throw in a different language and new property terms and it is easy to see why a lawyer could help you to save money.

It can be vital choosing the right real estate consultant and lawyer when you are purchasing in a foreign country, such as Brazil. Ensure that your lawyer is a member of the OAB, Brazilian Bar Association, speaks your language and is experienced in transacting property for foreign purchasers.

Your legal representative will advise you on your real estate purchase, contract, legal implications of the transaction and to some extent the tax consequences of the purchase. Brazil has very straightforward property laws and if the correct documents are in place the acquisition can be very swift. In older properties or land purchases, these documents may not be available and it is your lawyers duty to collect these documents and confirm their validity.

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.

When all of the payments are complete and the appropriate transfer taxes are paid, you will receive title to the property, ensuring your full legal ownership.

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