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What Should You Expect When Buying Property in Brazil? PDF Print E-mail
Written by Quinn Smith   
Friday, 22 July 2011 21:42

In a country with 4,650 of shoreline, there are a number of nice places for residential purchases. If you were waiting to get that perfect spot overlooking Ipanema, it may cost a bit more than a few years ago. But there are still plenty of beautiful places scattered throughout the country, from the arid beaches of the northeast to the stunning coast in the south and everwhere in between, Brazil has a lot to offer. But like most things, buying property in Brazil is a bit different than the US. What can you expect?

Looking for the property

Unlike the US where we have a rather complete listing of properties available online to real estate brokers, in Brazil buyers have to rely on the brokers to know the location of available properties and their relative prices. Right now, price can be a difficult thing to gauge, but it is important to have a quality real estate broker.

Financing the property

Brazilian banks have loosened lending some, but it is highly unlikely to find the kinds of mortgages and financing options available like in the US. It is possible to buy a property pre-sale, but the down payment requirements are higher. And the prospect of a 30 year mortgage is dim; in Brazil the maximum amount of time typical on a mortgage is 20 years.

The Legal process

  • Brazilian law requires all sales of real estate to be executed through a public title agent ("tabelionato de notas"). All Brazilian cities have at least one. An English translation of the document prepared by the tabelionato de notas is a "public deed."
  • After executing the public deed, you must take it to the local real estate county clerk for registration. This real estate county clerk is called the "Cartorio de Títulos e Documentos."
  • The cartorio should attach a document to the public deed called a "matricula." The matricula has an identification number, and later events related to the property are recorded on the matricula.
For the most part, foreigners can buy property in Brazil in their name. There are some limitations on foreign ownership, such as property purchased near international borders and in environmentally sensitive areas, but this leaves plenty of land available.
Renting or Leasing
It is common for individuals to rent or lease a property, and in hot vacation spots like Florianopolis, the weekly and monthly leases can be pretty hefty. But when it comes to the legal side, things are a bit different. Landlord-tenant law in Brazil tends to favor the tenant much more than it might in the US. In most states, a landlord can post a notice on the door giving the tenant three days to pay or vacate. In Brazil, the process of personally serving the tenant can take months, and there are even some tales of 1-2 years to evict a non-paying tenant due to the difficulties of service and pushing the case through the courts.
This is just a little taste of some of the differences one can expect when looking at Brazilian property. As Brazil grows economically, it would not be surprising to see more and more non-Brazilians buying property as investments and vacation homes in Brazil.

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