How to avoid a nightmare when buying real estate in Brazil - The basics
Are you on the look out for a beautiful piece of real estate in Brazil,whether to while away the hours on paradise beach,retire in the sun or capitalize on an investment opportunity?
If so....please read on..it could save you a fortune!
I have been buying and selling property as an investor and broker in Brazil for the past 12 years and have seen it all. The good the bad and the ugly.
I am very happy to say that my experience has been good on the whole and at times very lucrative. However I regret to inform you that I have been on the ugly side on one or two occasions over the years and this boiled down to not following the guidelines that I am about to give you..
So what are the key documents I need to have from the property seller when buying real estate in Brazil?
-) Certidao de Registro e Onus... Certificate of Registration. This is THE definitive and updated document to the property which provides name and details of the actual owner,the properties characteristics,who the current owner bought from and any details of the construction.You can obtain this certificate at the notary office in which the property is registered.It costs R$117($30 USD)and gives you absolute assurance that who you are buying from is in fact the actual seller.
The public deed (escritura publica) is normally the fundamental document that covers all the details of the property that you need.The only thing it doesn´t show you is the current status of property ownership(ie who is the owner today,not when the deed was issued!)
-)Buying real estate from a Brazilian company? ORANGE ALERT !!
I came a cropper here!! Lost money but learned a valuable lesson! If the seller is a Brazilian company please verify that the person signing has the legal powers to transfer the property.For this you need to ask for a copy of the company charter and the last additive/amendment made.Then check the administrative clause to see who has powers to sign. To be absolutely sure,ask for a ¨simplified certificate¨(certidao simplificada )at the chamber of commerce (Junto commercial)
-)Buying from someone who has a power of attorney to represent the seller? RED ALERT
I came unstuck here also and it cost me dear! If the seller gives a legal proxy for someone to represent them in the transaction it must be public,first off(registered at a notary office)it must specifically include,in writing, the power to sell the property and it must be valid. You need to go to the notary office that issued the proxy to verify it´s validity(ask for a ¨certidao do procuracao¨at a cost of 40 reals)
I hope that this information can help you avoid the pitfalls i fell into.I sincerely wished I had followed my own advice at the time but it was an eye opener and I learnt a big lesson from my mistakes.
Mike Smith
Professional Real Estate Broker in Brazil
Contact me; mikesmithbrazil@gmail.com
Phone; 55 84 99993 8936 / Whatsapp