Buying property can be a complicated process. Buying property abroad, where you may not speak the language, be familiar with the culture or understand the legal system may seem even more complex. In fact the system is very straightforward as long as you have access to the right legal advice and reliable local representation
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.
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 above services are generic because different types of property will require a different type of due diligence investigation. An off plan apartment will be fairly easy to check with regard to documentation as the majority of the documents required will have been prepared by the constructor as part of the planning permission process. If the property you are purchasing is a country or beach property then a far more detailed investigation must be made, with an historical ownership record to ensure that your ownership will not be challenged in the future and that the person selling is authorised to do so.
If you are buying a plot of land then the same checks with regard to title will be made but you will also require a survey of the land to be carried out in order to obtain its exact measurements and to identify its borders. This study will also include details on the planning status of the land, which will show you what can be built, and a detailed plan that will form part of your final title deed.
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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