The Role of the Lawyer when Purchasing Property in Brazil, Part 1.
by Ginny Naish It is good practice to hire a lawyer anytime you are purchasing land or property outside of your home country as property purchases ca...
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.
Obviously the legal service that you will require will be entirely dependent upon the type of property that you are purchasing. Land and older properties are more complicated in that the required documentation may be missing or out of date, this will involve your lawyer requesting and confirming the documents. In comparison off-plan properties will have their documentation in order for their recent planning applications.
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.
As soon as all the payments are settled you will obtain the title deeds to your property, which guarantees that the property is yours and that ownership has been transferred to your name.