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 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 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.
When you and the selling party have signed the contract, with the deposit paid, the contract becomes legally binding. Deposits vary from 10% – 30% of the purchase price for off plan properties, with negotiable payment plans. In the case of older property the payment terms can still be negotiable.
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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