Purchase with Confidence
When it comes to your purchase managing risk is paramount. Invest in Brazil are recognised in ensuring that all of our Brazil based property products and services pass the test of the most stringent legal due diligence, that they are delivered with the utmost transparency and that you are protected throughout your purchase.
Safe international property development and purchases require an acute understanding of the laws and processes of key elements such as rights of ownership, registration, planning and the local market. Because each country has its own laws it is essential that you work with a trusted partner that understands specifically how it works and what that means to you. Invest in Brazil are considered one of the leading international experts in how to make a safe profitable purchase in property within Brazil.
Before you buy
Knowing what to look for before you purchase is essential in assisting you to make the right decision. Having spoken at some of the leading international property Expos in Europe, the Brazilian Embassy and upon invitation by the Brazilian Government to their inward investment arms (APEX Brasil and ADIT), we highlight the important factors to consider before purchasing Brazilian property and Real Estate.
5 Main Factors to a Safe Brazil Property Purchase
Brazil’s Property Boom is on the strength of their local demand. With an 8 Million homes deficit your exit market for profitable growth must factor in the largest market – the local Brazilians themselves. Just because a property is being sold internationally does not mean that it can be resold effectively locally. Brazil sales indicate that the product appeals locally and is accurately priced to be competitive in the local market. Direct local market sales history is especially important for your protection as it is a crime to sell property or real estate in Brazil before all completed build licenses and planning permissions have been achieved. Verified local sales can be easily checked by a Brazilian registered lawyer performing due diligence with the local Notary (‘Cartorio’).
CPF / CNPJ Registration
For full legal ownership of property in Brazil and in order to have purchase contracts legalised by the Notaries in Brazil, you must first obtain either a personal tax identification number – CPF, or a company identification number – CNPJ. Without either one of these registered numbers you cannot register your purchase contract or any funds sent to Brazil. If you are investing in a company structure then the company in which you own shares should hold a CNPJ. Remember it is the person or company that is the registered owner of the property, land ,or real estate that you are purchasing, therefore, you must have one of these numbers to be considered the legal owner of that asset.
In Brazil all locations are not the same. Developed cities such as Rio De Janeiro and Sao Paulo have some of the most expensive real estate in the southern hemisphere having already undergone immense growth. Developing cities such as Joao Pessoa in the north east are now catching up leading to an acceleration in demand and pricing due to huge economic development, tourism and infrastructure programmes. Cities where there is a significant development in industry, commerce, jobs, infrastructure and tourism are excellent indicators for sustainable property growth. This is the same in any market the world over so look for areas where housing deficits are increasing, trade and industry expanding and money is being spent on infrastructure such as high speed road connections.
The legal structure of any purchase or investment in Brazilian land, property or real estate is essential to your safety.<P>
-Do you have the option to ensure your contracts are in Portuguese as well as in English
-Are they registered to you in Brazil with the notary?
-Is your money registered with the Brazil Central Bank?
-Have you been encouraged to use an independent English speaking Brazilian lawyer to perform a full legal due diligence for you?
-Are you ultimately purchasing with the actual registered owner in Brazil?
Always look for evidence and proof of the legal validity of the purchase and be mindful of promises made.
Licensing & Planning
Planning permission and build licencing in Brazil is notoriously difficult to achieve. Complex and critical environmental licenses are essential as part of the safety of your purchase as construction cannot commence without it. In fact, you can achieve all other licenses and yet still not acquire the installation licence. The ONLY guarantee of ‘full planning’ is when you have ALREADY achieved all of the licences so be mindful of this. For properties and projects under construction the developer must have: Licencao Instalacao (Installation Licence), the critical environmental agency final licence that allows construction Alvara De Licenca (Building licence), issued by state government to allow construction. An independent legal due diligence will ensure these are in place, however as a first indicator the developer should be able to provide you a copy upon request before you retain legal support.