the exact 15 Steps to buy real estate property in Brazil [Music] hello there my name is Luciano Rivera I'm a presidio attorney this is an intro video and we have specific videos for each of the 15 Steps so if you want to have a general idea about the process you can just watch this video if you want to know each of the 15 Steps in more details go to the description below where you can find the link to each of the 15 Steps watch this video Until the End to know how to get our ebook
the seven most common mistakes foreign citizens incur when buying properties in Brazil the first step is to decide whether you're gonna handle the process by yourself or if you're gonna hire an attorney to assist you some attorneys they are going to help you with the entire transaction and some attorneys they are gonna work in the specific key moments of the transaction such as contracture drafting 2 diligence assisting with money remittance and reviewing the closing papers before you attend ended the closing one of the factors you consider is how much money are you spending in this
purchase is this like your retirements money or is this just one more property that you're buying do you have a network already in Brazil like trusted friends maybe a realtor in the family of your spouse how much can you rely on this network to get this purchase done or are you entirely new to the Brazilian real estate market finally how comfortable are you with risk are you okay with assuming some degree of risk and having this transaction needed mostly by a realtor or do you need an attorney who knows the laws and are gonna make
sure that you are in the safest position possible a decision early on it's helpful because if you hire an attorney before you may even make an offer you're gonna have someone to help you assess if the property is suitable or not for a foreign city some of our clients they are going to hire us like in the middle of the transaction and at that point there is not much we can do about the terms that were agreed in the contract therefore if you're considering hiring an attorney do that even before you actually find the property
because again the property may have issues with the title or with the seller and the attorney would be able to help you detect such issues early on in the process after you decide whether you're gonna use or not an attorney you can move to the Second Step which is to orbiting a Brazilian tax ID called cpf the cpf tax ID it's a must for anyone to buy real estate in Brazil it doesn't matter if a Brazilian or a foreign citizen if you are getting started with a real estate transaction in Brazil and the seller does
not ask you for a cpf that may be a yellow or red red flag because without a cpf you cannot buy real estate in Brazil to get a cpf you have a few different options you could for instance go to a postal Service Agency in Brazil or you could go to the Bunko do Brazil or the Brazilian bank personally in order to apply for the cpf however some of these Banks and entities they are refusing issuing the cpf because nowadays there is an option where foreign citizens can apply by email and of course email is
more convenient so even from the foreign season perspective applying remotely it's a better choice some Brazilian consulates may also assist you with the cpf if you have an appointment with a Brazilian Consulate to handle a different matter you may take advantage of the same appointment and apply for the cpf tax ID however if you don't have any appointments you may want to to apply via email because getting an appointment with a Brazilian Consulate and taking the time to attend such appointment is usually not ideal because again via email is much easier for you to obtain
the tax ID to apply for the Brazilian tax ID known as cpf via email you're gonna follow the exact steps we have in our video related to the cpf tax ID you're gonna find the link to the cpf video in the description below the third step in our guide is finding the property to find the property first you need to decide by yourself in which area of the country you're going to be looking for properties that's a matter of course of personal taste and preference Brazil has Continental Dimensions so there are areas pretty different in
terms of geography culture customs cost of living and so on once you decide on an area you can use one of the many property search engines available in Brazil in the US you have just a couple of main search engines however in Brazil there are many we have a list of the main search engines in Brazil in the description below step number four in our list is to check the property records even before you make an offer or you start discussing the terms of a purchase agreement you should do a check on the property that's
because many properties in Brazil they are not suitable for foreign citizens some properties they are not going to have illegal title other properties they are going to be entangled in an auction in Brazil it's pretty common for people to start selling the property even before they acquire the title in order circumstances some sellers they have debt in some cases the seller may try to avoid recording the property on his or her name until the last second to avoid creditors finding out about the property so there are many issues that are sometimes acceptable to a Brazilian
who's willing to incur a higher degree of risk that are not going to be acceptable for a foreign citizen that's why it is important for you again even before an offer or getting it started with the contract to make a check and read the property history and know the type of property records you're dealing with step number five is to make an offer sometimes sellers are going to ask you to make an offer in writing but you don't need to be formal you just need to mention how much you're willing to pay for the property
and of course contingent to the seller obtaining all the clearance certificates which we gonna be addressing later on note that in Brazil it's not mandatory or required that you secure a realtor as a buyer you have an option to do so but if a wheelchair purchase this as a requirement or as a standard do not go their route feel free to decide whether you want to retain the realtor or if you want to keep looking for the ideal property by yourself after an offer has been accepted in terms of price it is time to draft
the purchase agreement in our practice we like to have the seller starting with a draft because then we can focus on the real requirements that we need in the agreement for our clients there are specific Clauses required for transactions in which foreign citizens are participating just to give an example one of the Clauses that we always have in our clients agreements it's a clause stating that the seller is going to collaborate and share every single document required for the currency exchange to be done for you to know in Brazil you send the money and the
money doesn't arrive automatically at the seller's bank account there is a total compliance procedure required before the bank actually releases the money into the seller's account some of the documents may be concerning to the seller such as a tax return but if you have a clause in the agreement stating that the seller is going to provide every document necessary the seller is not going to have any option other than providing the required documents however if you don't have such Clause the seller may very well say well I'm not going to provide this document I'm selling
a property I'm not financing the property why do I need to provide my tax return to the bank however as sellers don't know that is actually a requirement from the Brazilian Central Bank for the receiving party of this money coming from abroad to prove that they are tax diligent that they are taking care of their obligations as a taxpayer with a client Us in the contract stating that the seller is going to provide the needed documents you make sure you have everything for the money to arrive in Brazil and for you to fulfill your obligation
to pay for the property as a buyer as a footing citizen buying a property in Brazil you may need to present documents that a Brazilian buyer would not have it to present in this sense it is important to have in the contract the timeline that's going to be enough for you to obtain and provide all the needed documents other aspects related to the due diligence may also be addressed in the draft in our video addressing specifically the contract to draft we do discuss the main Clauses that you should have in your purchase agreement step number
seven is to legalize or nationalize your documents required for the closing and issuance of the new Deeds if you are a single buyer or if your territory status as a person is of single person you're gonna need to have your birth certificate and prostitute and then sworn translated in Brazil and apostillo is a document that's going to be issued for instance in the United States why the main State Authority so in New York is going to be the Department of State California for instance is going to be the Secretary of State after you get the
Apostle you're gonna ship this document physically to Brazil so this document is going to be sworn translated and then recorded with a specific type of registry in Brazil so these papers they can be used for the closing and for the issues of the new Deeds we discuss in details the legalization of your documents in the matching video it's also important to think upfront if you're gonna attend the closing or not there are a couple of options if you don't want to be physically in Brazil at the closing one option is to get a powerful journey
in place when you get above alternative done in Brazil when physically present in Brazil that's something easy to be accomplished however if you are abroad as a French citizen it's not easy to get a ball for Journey done and legalized there are way too many steps for you to handle anyhow we have a specific video addressing the ball fraternity step number nine in our list is providing a down payment to the seller Sellers and Realtors they understand that until it is time for the closing there is a lot of steps and documents should be obtained
so they ask a good faith deposit or payment or see now as we say in Portuguese to have this contract binding and to wait until everything is clear for the closing when you're gonna pay the balance of the price this down payment or see now it's going to be usually between five to ten percent particularly when the buyer is a foreign citizen is not rare for realtors to try to get something higher like 20 percent and the main idea behind this attempt is to be able to collect their commissions at the beginning of the transaction
we recommend that you do not accept that and that you try to pay as little as possible two reasons the first reason is if something happens in the middle of the transaction you're not going to lose a lot of money the second point is by paying the commissions towards the closing you make sure that the builders are going to be around to assist you as much as needed until the closing after the document is provided the seller will have it to provide the certificates of clearance certificates of clearance are certificates issued by different Brazilian authorities
addressing tax obligations of the seller and tax obligations related to the property as well and it's not just tax there are certificates related to litigation there are certificates related to labor duties to labor taxes to labor obligations so all of that is going to be required at the closing so the registry knows that at least the most basic due deletions was done important for you to understand that the required certificates of clearance they do not guarantee that the property and the seller will not have any issues again they address the most basic concerns from a
buyer's perspective Step 11 in our list is to plan for the closing the closing it's a official moment an official Gathering or meeting between the buyer and the seller for the papers to be signed most transactions are still done in person where the seller is going to attend and the buyer is going to attend as well and a closing done physically it's usually better than a closing done remotely remote closings are something new in Brazil so so there is always a risk that something doesn't work well or that the registry ends up missing some legal
requirement and the closing could be disputed down the road it's also important to have a Target date for the transaction so you can work with the currency exchange of remittance in the meantime it is pretty complex for you to send a large sum of money to Brazil so you actually need to plan weeks up front so when the money arrives in Brazil the money is ready to be released to the seller if you use a currency exchange specializing Bank in Brazil this bank is gonna ask you for all the paperwork up front this way again
you can be prepared to release the money on the day of closing however if you just send the money straight to the seller's bank account you're not going to have a control of this process and this is going to be up to the seller to do so the concern here is the seller is going to control the release of the money if something happens in the meantime there is no way for you to recall the money that's why we always recommend you to work with currency exchange Banks step number 12 in our list is to
pay for the transfer tax and the registry fees registry in Portuguese it's called cartoyo and the cartorio is in charge of handling the closing and a second card to audio not the same one is in charge of issuing the new Deeds all of that is going to cost money and there is no closing until you actually pay for the transfer tax and you pay for both cartoons fees and the way you're gonna do that is to usually send the money to either debutter or your attorney you don't send this money to the seller of course
you want to send the money to the person who's going to actually pay those things and prepare for the closing to happen step number 13 when all of those things are walking together other towards the day of the closing you're gonna have your attorney reviewing the transfer deed the transfer deed is just a term in English we're trying to explain you know a process in Brazil by using the similar terms that you use in the United States the actual name is gonna be the escritura the escritura it's the legal step of the seller transferring the
property to the buyer that's when the seller signs the transfer deed or The Institute and the buyer signs it as well therefore giving publicity as a legal term that we use in Brazil making public that there was the sale of the specific property that you buy by getting the transfer deed reviewed by an attorney you make sure that all the information in the transfer deed is correct that the buyers are actually getting the ownership that the certificates of clearance are correctly addressed in the transfer Deeds that the amount that the taxes that everything it's well
described because all of those things they are the support you need for the legal conveyance of the property from the seller to you as the buyer step number 14 attending the closing the closing itself it's usually pretty fast because again the transfer deed was reviewed up front and most of the time is spent is going to be taken by the registry verifying the ideas for those attended the closing as well as some small talk conversation which is part of the Brazilian culture but once the transfer D designed the ceremony is going to be over and
each party is going to go its way step 15 in our list is to make sure that the transfer deed it's sent to the hegeistro gmovies which is a different registry in most cities and the second registry is going to be the one actually issuing the new deed which we call Gerald and this is gonna show the chain of ownership with your name as the buyer as the most current owner again do not forget to check the description below where you're gonna have a link to each of the individual videos you're also gonna have links
to other resources that you're gonna need in your journey of buying a property in Brazil finally I hope you enjoyed this video and if that was the case please like it so other people can find this important resource for the journey thank you for watching us and see you in our next video [Music] thank you
