How to buy property in Brazil, Brazil attorney, legal basics

Let’s consider the following: You’ve searched and you’ve found the perfect opportunity to purchase your dream property in Brazil. What now? There are many things you should do. But in order for you to make sure your assets are protected, I will gie you a spoiler, simply hire a Brazil Attorney. These are the things you should look out for when hiring a lawyer in Brazil and what your attorney can do on your behalf.

 

 

The first thing that you should know about investing in real estate in Brazil is that, as a foreigner, you are completely able to buy property in Brazil. You have the same rights (and obligations) as a Brazilian when you buy real estate in Brazil. You own 100% of your assets without a need for a ”local partner”. Your foreign corporation can buy property in Brazil. Some of my clients ask me if it is worth it to set up a Brazilian corporation to hold the property. I’d say that if you are not running a real business in Brazil it is too costly and, therefore, not worth it to have a Brazilian corporation just for that purpose.

You can also use your IRA funds to buy properties in Brazil. All you need to do is to form a corporation with your IRA funds. In this case your IRA will be a member of the company and the company will hold the property. If you grant your lawyer a power of attorney, it is not necessary to be in Brazil to buy, pay, sell a Brazilian property and receive the investment back in your bank account.

SO WHAT DO YOU NEED TO DO ONCE AN OPPORTUNITY IS FOUND?

The buying process can seem to be a bit tricky so its always advisable for the foreign investors to hire a lawyer to guide them through the purchase process which can be summarized into 5 simple steps:

1 – Choose the property and set the price.

Make sure you are dealing with a local bilingual realtor. Real Estate Agents in Brazil must be registered before the CRECI, which is the realtor association.

2 – Hire a Brazil Attorney.

It is important to work with a good lawyer. It is not a legal requirement to hire a lawyer in order to complete a real estate transaction in Brazil. However, buying property anywhere involves certain legal details that are specific to each country.

A lawyer is a professional who will protect your investment, saving you time, effort and money too.

So I do recommend that you try to find a lawyer who is experienced with foreign buyers. It will make your purchase as trouble-free and fast as possible.

3 – Provide with the necessary paperwork.

The paperwork you should provide to complete your real estate transaction is quite simple to get.

For individuals, its required a valid passport as a personal identification. A CPF number (Tax ID). And, if you are not in Brazil, a Power of Attorney.

If you are buying as individual and are married, the same documents should be provided by both, husband and wife. It is necessary because in Brazil we need the spouse’s authorization to sell any kind of real estate property. So all properties in Brazil are registered in the name of the couple.

For corporations, its required the copy of the articles of organization, a CNPJ number for the corporation, the passport of the manager/director of the company who will sign the title deed or the power of attorney and the CPF number of the manager/director. In case someone else is signing the deed, A power of attorney must be granted by the manager/director.

The articles of organization must state clearly who manages the company. Or who is authorized to sign the power of attorney. When preparing the title deed, the notary will check if the person who is signing  the deeds, or signed the power of attorney, has powers to do so.

The power of attorney document must be prepared before a public notary. The copies of the passport and  articles of organization must be notarized as a true copies as well. All documents must be legalized at the Brazilian consulate to be valid in Brazil.

4 – Sign the contract

A basic contract should cover money wiring, money exchange rates, payment delay penalties, (within the legal limits), penalties for delaying the delivery of the property. The contract must also cover the following questions: How will the property be delivered? If it is a plot of land, will there be electricity and water supply? What are the facilities and amenities? Will they come furnished?

5 – Make the payments

All investors can send funds to Brazil as a regular international bank transfer. The Central bank receives all international transfers, recording the funds entering the country. Use this official route to prevent any future problems should you wish to transfer your funds back out again.

To make the transfer you will need the bank details of the vendor (SWIFT code, bank account and branch number). The buyer then references the property being purchased on the transfer order. That will link the investment with the purchase. There is a field in the Swift message for the details of payment where you should instruct your bank to insert your property details.

The investment will be sent in the currency of the country of origin. So bear in mind that you will always send funds in your own currency, not in Brazilian Reais. The vendor will convert your currency into Reais when receiving the funds in Brazil.

It is that simple. Your Brazil Attorney can and will assist you with all these steps.