Purchasing Real Estate in Brazil, the Role of the Lawyer, Part 1.
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 to choose the right lawyer who is experienced in foreign transactions and one that can speak to you in your own language. Your lawyer should be registered with the OAB, the Brazilian Bar Association. Lawyers in Brazil charge a percentage of the property value for property transfer work.
The role of the lawyer is to guide you, the client, through your real estate purchase and offer legal advice about the transaction, possible complications that may appear and tax consequences from the procedure. The process of buying property in Brazil is straightforward if you follow the proper procedures. If all the correct documents are available the transaction can be very swift, but in many cases these documents are not immediately available and a large part of the lawyers role is to collect, question and confirm the required documents.
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.
Before signing the purchase contract known as the contrato de compra e venda your lawyer will have established that the property is ready for sale with the correct documentation. The contract will list all of the terms of the contract such as price, description, timescales and the date of transfer of the property to you.
With the contract signed and the deposit paid, the document is legally binding. Deposits and payment options vary wildly in Brazil especially for off plan purchases, and are often negotiated. Even on completed units or older properties, phased payments can be negotiated.
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.