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Purchase Process in Brazil

Below is the standard purchase process in Brazil and issues that may affect that purchase:

• Ownership of land and property by foreigners is permitted, and all property is freehold.
• Once a buyer has found a suitable investment property, it is necessary to apply for a certificate known as Certidao de Onus Reais. (This is not required if you are buying an off-plan property).
• For off-plan purchases it is advisable to carry out all due diligence with regards to checking building licenses are in place, the land is properly registered and has 'copia da escritura publica' and a certificate from the notary.
• Once the purchaser receives this for the chosen property and has negotiated an agreed price with the vendor, a small non-refundable deposit is usually paid to the seller.
• A sales contract is then drawn up which details the full conditions of the sale and also acts as a receipt for the deposit paid.
• Finally, it is important to draw up the property’s sales deed completion (‘escritura’) normally carried out at the notary.

Costs of a standard property purchase in Brazil include the following:

• Stamp duty (or purchase tax) at 3% of the purchase price.
• Government purchase tax of between 2% and 7% of the purchase price.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.

 Read more about the purchase process when buying property in Brazil.