The Process For Buying Property In Brazil?
Property
Richard Surrey
Sep 14 2008
Property Buying Fees:
Transfer tax 3%
Notary fees 2-3%
Agent fees 6%
Who pays the fees:
Buyer 6.69%
Seller 5.04%
Foreign individuals and non-residents may invest in urban and rural properties through
direct ownership from abroad, or through resident companies or partnerships. To
be able to buy a property, a tax registration number from the Cadastro de Pessoa
Fisica (CPF) is required.
However there are several restrictions on investments in rural properties. Foreign
individuals who intend to migrate to Brazil may acquire rural properties directly
from abroad only if they come to live in Brazil within three years from the date
of acquisition. In addition, rural properties acquired by foreign companies shall
be destined for the implementation of agricultural, industrial or settlement projects
and these activities must be related to the companies’ purposes.
To close a sale, it is necessary for both parties to sign a public deed drafted
by a (private) notary public, and to have him register the sale at the real estate
registrar. Real estate registration in Brazil is well-developed and safe, and each
piece of real estate can only be registered at a single registry, which keeps the
entire commercial history and the physical identification of each property. Access
to all information about a piece of real estate, e.g., its owners, mortgages and
other burdens, is public. In the most important cities these services are automated.
A sale can be entered into directly between seller and purchaser. But intermediation
can only be carried out by accredited real estate agents or agencies. The rate at
which they are remunerated through commissions (a percentage over the sale or rental
value) is determined by the real estate agents legislation of each region, through
the Real Estate Agents Regional Councils (CREI). All 14 procedures to register a
property will take around 47 days to complete.
