Legal

Choosing a property:

Once you have chosen a property to buy, you will sign a preliminary reservation agreement with the seller, and pay a reservation fee of £500. This deposit removes the property from the market.

At this time you should seek a legal representative, preferably who can speak in your native tongue, and they will check that the property has the relevant documents needed to sell. These include:

• Title deeds
• The person selling the property has the authority to transfer the ownership
• There is no outstanding debts, pending charges or mortgages on the property. If so, then take the appropriate measures to settle these matters 
• A survey of the land, if buying a land option, for access points, border markers and building permission.

If you have chosen an off plan property then:

• The developer has the appropriate certificates to transact
• The building licence has been issued for the development
• The authority of the Government has been issued

Exchange of Purchase Contracts

Once your legal representative has completed the checks on the property the sale will take place. You will sign a Purchase contract, which is the main document containing information on the buyer and seller, the full details of the property, the method and obligations of payment, and the date you can take ownership of the property. On signing of this contract, by both parties, the contract becames legally binding and the deposit is to be paid.

Property Registration

The property registration procedure includes the payment of all the taxes applicable to the property and the obtaining of the final Register Stamp (Cartorio) for the Title Deeds, which guarantees the transfer of the property into the buyers name. This procedure is an important step, and takes place just after you have taken possession of your property, and is usually undertaken by your legal representative but can be done by yourselves.

Once the Property Register (at the Cartorio) has been completed the title deeds will be available to you making you the legal and rightful owner.

Other Matters

CPF (Cadastro de Pessoa Física, Tax code)

This is an identification number for use in Brazil. If you have dealings within Brazil (even if you are not a permanent or tax resident) you are required to have a CPF number. This number is a legal requirement for all foreigners purchasing property as it enables the foreign investor to be uniquely identified
for taxation and title purposes.

To apply for a CPF number you will need to have the following documentation:

• Passports and copy
• Birth certificate and copy

Money Transfer

All transfer of funds must be sent through the Central Bank of Brazil which records your funds entering the country. It is important that this is the route used as it may cause problems in the future when transferring funds out of Brazil when selling your property. Today the registration of foreign investments is an electronically made declaration called RDE-IED (Electronic Registration Statement Direct Foreign Investment). The investment will be registered in the currency of the country of origin.