The Role of the Lawyer when Purchasing Property in Brazil, 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.
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 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.
When purchasing land lots it is essential that you have a report carried out which will include a topographical study, which will state the exact size of the land and the location of its borders. The report will also investigate the planning status of the land, showing you what can be built, and will also provide a detailed plan, for inclusion in your 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.
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.