Foreign entities and individuals are allowed by Brazilian law to own real estate and properties in Brazil. Urban properties are a free zone for foreigners but when it comes to rural areas, there are some legal limitations, considering the size and purpose of ownership. Here are some details that should be paid attention to. Buying property can be a rather expensive and complex process in Brazil and you will want to make sure that both the contract you sign with the seller and the agreement you make with the bank line is proper and compliant with the law. Since you are making an important investment, you need to make sure everything is done correctly or you might trap yourself into something you cannot easily back out of later. Right now, Brazil is a buyer’s market. Despite the excitement, we strongly advise clients not to take any rushed steps without proper and not bias legal counseling. Buying real estate is one of the most complicated investments you can do in Brazil. You might not speak the language (Brazilian Portuguese), and you might not know the laws. Yet, you should not be afraid of going forward with the deal, only cautious. Real estate registration in Brazil is mostly well-developed and safe. Each piece of real estate can only be registered at a single registry. However, unfortunately, there are still many irregular properties being put to sell in the market and – just like anywhere in the world – foreigner citizens tend to be misled by liars and badly intended profiteers. This is one reason why several documents should be legally checked before you sign anything. Even if you are working with a licensed realtor, keep in mind you still need a trusted legal advisor on your corner. Realtors in Brazil are usually contracted by sellers and, although the majority of them is honest, they tend to be on the seller’s corner and not on the buyer’s. Disclosure rules involving buying a property in Brazil are NOT slightly rigid as in North American countries, for example. So…one can’t be too careful! Make sure you have an impartial attorney to guide you (one that is not commissioned by the deal). Let your legal adviser guide you and inspect all documents required by Brazilian law and make sure you are safe on this purchasing process, including investigating the seller’s credit life – as in Brazil, this interferes deeply on the safety of your purchase. Unfortunately, it is not rare to see foreigners and even Brazilians being defrauded by unscrupulous sellers in Brazil.  As we said before, due to the current economic crisis that Brazil is going through, this is the best time for buying a property in the country. Prices are low and investors are faced with the opportunity of closing great deals! So, get legal help and go for it!   por Leticia Calderaro    DISCLAIMER: This article provides only general information, and should not be used as specific legal advice for a particular case. If you want to know more, contact us HERE  and we’ll be glad to assist you.

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