Buying Real Estates in Brazil

The only formal demand to buy real estate in Brazil for foreigners is the acquiring of the CPF number (Taxes Holder number). The process to obtain such a number is very simple and fast. The only documents you will need is your passport and an Official document that shows your parents names (can be only your mothers name) such as your birth certificated. If you are going to buy one or more real estate with us we will take care of all the necessary formalities and requirements to do the buy including the CPF number.

Procedures to buy real estate in Brazil.

1) Contract of selling: this is a private commitment between the buyer and the seller on the real estate that is been negotiated. This Contract gives safety and peace of mind for the next upcoming steps which it implies, between other things, the payment of taxes and fees of the municipal courts, resgistry fees, etc... In the moment both parties sign the contract, the buyer gives a good faith payment for the seller to seal the deal. The value of this payment can be an agreement between both but it is in general, according to the practice of the market, a 20 % of the entire value of the Real estate. From that moment, if the buyer changes opinion about the buy, he loses the payment in favor of the seller. In case of the seller be the one who does not want to sell his property any more, he will pay twice the value of the given payment to the buyer, in accordance with the item 417 and 420 of the civil Brazilian code;

2) After this stage, normally in 30 days counted from the signing of the contract, the buyer, seller, and all the required documents for both parties in the negotiation, is presented to a municipal court, which a Public Writing of selling and buying real estate will be published (taking as base the previous signed contract). With this, the buyer will pay the value remaining (80 %) of the real estate, according to the contract.

3) Finally, the buyer will have to take his public writing for a municipal real estate Registry office; this office will publish in the Official registration book. So the buyer will have the property title put in his name, consequently he will be legal owner of it and have all the legal rights on that property. This transference is called in Brazil, transference between live parties. This completes the whole process of buy of real estate in Brazil.

The real estate deal in Brazil is done when the buyer paid the good faith payment (the 20 % down payment). While this not happen, the Real estate can be sold for any person who is interested.

Questions related to the transference of money to Brazil.

To bring money to Brazil it is necessary to justify it. Why are you bring and for how reason? This is done presenting to a bank the contract of selling and buying, described on the first part of this article. This documentt is directed to the Central Bank of Brazil for the "ok" for this operation. That way you can bring the money to Brazil with no Problem and case you sell your real estate later, you can take it back to the oring country.
For a individual person to open an account in a bank in Brazil is necessary to have the CPF and RNE (national record of foreigners); in another words, you will have to apply for a permanent residency in Brazil. We can guide you through this process which is fairly simple and fast. By
__________________
Daniel Cysneiros


MSN: dcysneiros at hotmail
SKYPE: dcysneiros
+55 85 88739465

Foreign Ownership
There are no major restrictions on overseas buyers for buying and selling residential or commercial property. There are some limitations or fees applicable for specific areas such as marine land, islands, agricultural rural land or areas near Brazil´s International borders.

Is it safe to buy Real Estate in Brazil?
Yes, Brazil is a safe place to buy real estate. We recommend that as with any overseas purchase that you use an approved estate agent and lawyer.
How much will it cost to buy or sell property?
On average transaction costs (ie stamp duty, fees etc) can be around 7% of the purchase price. This may differ on the location (eg beachfront), type of property and State you buy in. If there is a significant amount of work to establish title and ownership then these costs may be more.
This budget will cover you for Government Purchase tax (2%-7%), legal and registration fees.
Legal Matters
We have English speaking lawyers to help you with your purchase.

These lawyers check the current owners have the correct title to the property. Check for any charges and liabilities on the property. Checking your contract and advise you on the obligations for both parties. Helping you through the payment/funds transfer. Ensuring the property is registered in your name.
There are generally no limitations to returning money back overseas if registered with the Central Bank at the time of your purchase.

Can I get a mortgage?
The mortgage market is in its infancy in Brazil. In 2005 about 50,000 mortgages were granted however this will grow as interest rates decline and as banks develop these products. We are discussing mortgaging options with several financial institutions in Brazil. Currently foreigners cannot get mortgages. Buyers usually arrange alternative financing in their own countries.

Land Registration System.
Real estate registration in Brazil is carried out by private notary publics, under the form of a public permission, under Justice control. All real estate registries in Brazil are under control and fiscalization of a State Judge.
The real estate registry system in Brazil is quite developed and safe, in which each property can only be registered at a single registry, which keeps the entire commercial history and the physical identification of each property. The access to all information of a real estate, including those concerning its owners, mortgages and other burdens, is public. In the larger cities, these services this may be automated.
It is very important to ensure that any property you buy has clear title.
Code of Ethics
The Real Estate Agents Law imposes a Code of Ethics over all professionals and companies operating in the segment. There are internal disciplinary processes, with sanctions ranging from fines to violator’s license suspension and cancellation. Sanctions are imposed by COFECI, through the CRECIs.
Licensing Requirements
All real estate agencies must have a fully qualified real estate agent partner who is technically responsible. To close a sale, it is necessary that a public deed is drafted by the notary public, and it is registered by the real estate registrar. The sales can be entered into directly between sellers and purchasers, but in case of intermediation such activity can only be carried out by real estate agents or agencies accredited by the CRECIs. Lawyers are not mandatory, but they can represent any of the parties as attorneys-in-fact.

When I considered Brazil it struck me than ALL the Brazillian agents kept re - itorating I didnt need a Lawyer.

This really put me off. Us Brits want large capital city law firms to shoulder the risk and manage transfers of money. Any thing less is total loonacy.

INVESTY. I totally agree with you, this is just one option. We own land on the North East Cost and this is just our offer to those who may wish to take this course. re assuring them that we have Brazilian lawyers who are versed with English and transfer Law.
David.

INVESTY .. what you were told is infact correct though, because unlike British law, you do not need to necessarily use a lawyer, as the CRECI registered agent & the Notary are qualified to carry out the sale & puchase transaction & have total accountability to the state.It is however recommended you use a qualified Lawyer who speaks your language, and also one that knows the area where you intend to buy in, and also ensure that any contract or legal papers relating to any potential purchase, are always translated for you into your native language by a Public translator recognised by Federal law. The investments I have made in Brazil were without Lawyers, as my wife is a Brazilian, who happens to be an estate agent & lawyer :-)

hi all,

Can we get a list of reputable solicitors?

Cheers
AI

Al contact me on info@brazreg.co.uk with your e-mail address and ill try and send a list of soilcitors.
dave

well was good in the late 60s train robbers found it an excellent place to invest.

Here is a general guide to buying and selling real estate in Brazil

Foreign Ownership

There are no major restrictions for overseas buyers for buying residential or commercial property. There are some limitations or fees applicable for specific areas such as marine land, islands, agricultural rural land or areas near Brazil’s international borders.

Is it safe to buy real estate in Brazil?

Yes, it is safe to buy real estate. We recommend that as with any overseas purchase that you use an approved estate agent and lawyer.

How much will it cost to buy or sell property?

On average transaction costs (i.e. stamp duty, fees etc) can be between 3% and 8% of the purchase price. This may differ on the location (e.g. beachfront), type of property and state you buy in. If there is a significant amount of work to establish title and ownership then these costs may be more.

This budget will cover you for Government Purchase Tax (2%-7%), legal and registration fees.

Legal Matters

We have a panel of approved (English speaking) lawyers to help you with your purchase. The costs are generally around £1000.

For this the lawyers will

Check the current owners have the contract title to the property,
Check for any charges and liabilities on the property,
Checking your contract and advise you on the obligations for both parties,
Helping you through the payment/funds transfer,
Ensuring the property id registered in your name.

Money Transfer

Funds are sent directly from your own bank to ***’s solicitor’s client account, who then forward your funds on to the developer in Brazil via the Central Bank of Brazil, who record your funds into the country. The seller has to present their contract to the bank to release the funds. This ensures the government have recorded your investment into the country. We recommend you only use the official route otherwise you may have problems transferring funds out of Brazil when you sell your property.

Can I get a mortgage?

The mortgage market is quite underdeveloped in Brazil. In 2005 about 50,000 mortgages were granted, however this will grow as interest rates decline and as banks develop these products.

Brazilians have tended not to get mortgages because the sectors is not as well developed as in the UK and rates have been very high (20-30%).

Foreigners cannot get mortgages in brazil. Buyers usually arrange alternative financing in their own countries.

Some developers of the new build and off-plan developments offer instalment plans over 12 to 60 months. The charges applicable vary from developer to developer and payments are usually indexed.

If you have property in your own country and would like to borrow against this, then we can introduce you to an Independent Financial Advisor who can help you to raise finance accordingly.

Land Registration System

Real estate registration in Brazil is carried out by private notary publics, under the form of a public permission under Justice Control. All real estate registries in Brazil are under control and fiscalization of a State Judge.

The real estate registry system in Brazil is quite developed and safe, in which each property can only be registered at a single registry, which keeps the entire commercial history and the physical identification of each property.

The access to all information of a real estate, including those concerning its owners, mortgages and other burdens, is public. In the larger cities, these services may be automated. It is important to ensure that any property you buy has clear title.

Code of Ethics

The real estate agents law imposes a Code of Ethics over all professionals and companies operating in the segment. There are internal disciplinary processes, with sanctions ranging from fines to violator’s licence suspension and cancellation. Sanctions are imposed by COFECI, through the CRECIs.

Licensing Requirements
All real estate agents must enroll with the Real estate Agents regional Councils. All real estate agencies must have real estate agent partner as technical responsible. To enroll, the applicant must take the Real estate transactions technician course.

To close a sale, it is necessary that a public deed is drafted by the notary public, and is registered by the real estate registrar. The sales can be entered into directly between sellers and purchasers, but in case of intermediation such activity can only be carried out by real estate agents or agencies accredited by the CRECIs. Lawyers are not mandatory, but they can only represent any of the parties as attorneys-in-fact.

Estate Agent Services

The services are designed to assist the parties in sales and rentals. The basic services are real estate appraisal and publicity (newspapers and placard placement), purchasers and potential tenants assistance, contact between the parties through proposals and counter proposals forwarding, technical and legal advisory for the parties and real estate documentation, agreements drafting and assistance with public deeds and their registrations.

Buyer/Seller Agreements

The purchase and sale in the Brazilian real estate market is regulated mainly by two federal laws
The Real Estate Agent Law (Law number 6530 if 1978)
Consumer Defense Code (Law number 8078 of 1990)

It does not matter whether there is a written agreement or not (although the Real Estate Agent Law requires written agreements); in case of proof that the natural or legal person professionally sold or intermediated the sale or rental or any asset or service to a purchaser or seller, or to a landlord or a tenant, the Brazilian legislation is quite modern in the protection of customer rights. In general, the agreements are entered into with the sellers or with the landlords (owners).

Legal Formalities for Buying in Brazil

The process can appear somewhat bureaucratic and longwinded, however, our job is to simplify the process and reduce the time. We will be happy to answer any questions you might have.

Visas and Passports

Travelers from most countries will receive an automatic visitor’s visa entry; this is granted for 90 days. It is possible to apply for an extension for a further 90 days at the local police station. Travelers from some countries are required to apply for a residency at their nearest Brazilian Embassy before travel. Please ask us if you require more information about visas to Brazil.

Before traveling to Brazil, you should have at least 6 months from the return date of your journey until your passport expires.

Flight Times

Flight costs are dramatically reducing to Brazil. We can help you book your flight. An example of a direct flight from London airports to some destinations of the Northeast of brazil are currently around £290 to £500 (return). Prices do fluctuate depending on the season, operator and destination airport. At present there are over 220 scheduled flights. For example TAP has 48 weekly flights to Brazil from Lisbon.

Living in Brazil

As a Tourist:

A normal tourist visa is for 90 days. You can either extend or leave and re-enter to get a new tourist visa and you can stay for a maximum of 180 days per year as a visa. Please contact your local Brazilian embassy for details of visa waiver countries and details of visa requirements.
As a Resident:

You can live in Brazil if:
You invest US$50,000 in an appropriate business.
Retire to Brazil and can prove you have income of US$2,000 per month as a pensioner.
Are married to a Brazilian.

__________________
DAVID BELK
WWW.BRAZREG.CO.UK

PART TWO

OVERVIEW

Brazil is the fifth largest country in the world and the largest in South America. Its population consists largely of European decedents and people of mixed race, as well as native Indian and a significant number of people of African descent. The size and ethnic diversity of Brazil provide it with a very rich and varied culture.

Brasilia is the capital of Brazil, but Sao Paulo and Rio de Janeiro are its largest cities. Other main cities include Manaus, in the Amazonian region, and Fortaleza, Natal, Recife and Porto Alegre on the coast.

Some quick facts:

Area: 8,511,965 sp km
Population: 188,078,227 (U.S Census Bureau estimate)
Capital: Brasilia
Government: Federative Republic
Main Languages: Portuguese (official language); Spanish, English, French
Religion: Roman Catholic 73.6%, Protestant 15.4%, Other, Unspecified or No Religion (11%)
Time: GMT-2 to GMT-5. Daylight saving from Oct to Feb in Southern Brazil
Flight Duration from U.K: approx 8.5 hours.

COST OF LIVING

The Brazilian unit of currency is the Real (R$ or BRL). As at October 2006, 1R$ was equal to GBGP 0.25 and EURO .37. The cost of living in Brazil is low, typical prices include:

Loaf of bread: 37p
1kg of potatoes: 62p
1.5 litre of bottled water: 63p
Glass of local draft beer: 66p
Restaurant meal from: £1.25


CLIMATE AND WEATHER

Although Brazil is a tropical climatic zone, the diversity in its size and landscape means that there are a diverse range of climatic conditions throughout the country, from the tropical north-east to the temperate south.

Typical seasonal weather:
Winter: from June to August, temperatures in the south range between 13 degrees C and 18 degrees C, with occasional frosts.
Summer: from December to February, temperatures in the south are in the upper 30 degrees C, and sometimes exceed 40 degrees C, with high humidity
Spring and Autumn: typical temperatures are around 25 degrees C.
The average yearly temperature is 28 degrees C.

In general the north-east is less humid than the south due to the effect of tropical breezes.

HEALTHCARE AND VACCINATIONS

Medical and dental care in Brazil is generally considered to be of a good standard, especially in capital cities. Municipal hospitals are widely available, which provide free treatment including emergency services to everyone. One major difference when comparing to other healthcare systems is that you do not always have to go through your GP to receive a specialist consultation.

There are no compulsory vaccinations required for Brazil at present, unless you are planning to go to the Amazon, in which case you would need Hepatitis A and B, Yellow Fever and Malaria tablets. There are no current problems with any specific diseases.

In general private healthcare in Brazil is of a good standard, but it is important to have health insurance. Good dental treatment is also available in Brazil. Cosmetic surgery is a major Brazilian industry, bringing many foreign nationals to the country.

Typical private healthcare costs with UniMed, Brazils largest and best healthcare insurance provider, for a family of four would be:

Male aged 41
Female aged 36 à R$ 570.00 (£140.00) per month
Two Children aged 4 and 6

EDUCATION AND SCHOOLS

Virtually all expatriate children living in Brazil attend a private school.
There are many good private schools in Brazil’s main cities and in other locations with substantial expatriate communities.]
Some of these are international schools, accredited overseas, which mainly follow the American or British curricula while others are Brazilian-run.
Good private school fees range from £30 to £60 per month dependent on the school and the age of the child.

EMPLOYMENT

The best route for foreign nationals looking for work in Brazil, it is better to go through a large multinational corporation or inter-governmental agencies.
There are many online jobs sites, some of which specialize in particular areas of work, such as medicine or English language teaching.

RENTING PROPERTY

Currently there is a 70% shortfall in tourism accommodation. Many new developments are under construction to address this shortfall. We would advise that you use the services of a reputable real estate agent when looking for accommodation. Club Tropical offers a full rental and management service, including maintenance of the properties within the resort.

BUYING PROPERTY

Property prices are relatively low in Brazil, but they are increasing rapidly, particularly in the big cities and main tourist areas. In some areas, property prices have increased by more than 50% in 2006.

There are no restrictions on the ownership of land or property in Brazil by foreign nationals. However, in order to purchase property you need a Brazilian identity card called a CPF. This is easily obtained through a simple process which is included in the purchase process with us.

TAXATION

Foreign nationals who are tax-resident in Brazil are required to pay tax on their Brazilian and overseas-generated income, unless covered by a double taxation treaty between Brazil and their home country, and must file an annual tax return in April. Foreign nationals become subject to tax-residence status if they stay in Brazil for more than 183 days in any 12 months period, and this status applies for 12 months after their last departure from Brazil.

__________________
DAVID BELK
WWW.BRAZREG.CO.UK