What is the most efficient way to buy a home in Brazil?

First, no matter what, be ready for a lot more time and work than you could imagine. Second, I HIGHLY recommend you hire your own professional as the bureaucracy in Brazil can be overwhelming, extremely time-consuming, and very expensive, especially if you make mistakes or get taken to the cleaners. I have a pro I would highly recommend to you in SP to accomplish anything to do with the government.

To respond to your questions one by one.

1. Itau has been good to me since getting my residency.
2. I use Wise most of the time to transfer funds from the USA to Itau. There is no Itau bank charge to do this. I tried bank transfers using Chase, never, never again.
3. Do not trust anyone in Brazil when buying property, (or a vehicle), especially realtors. I am sorry to the honest realtors, but there are way, way too many dishonest ones. ALWAYS hire your own professional. I have a professional facilitator in SP I would trust with any real estate transaction, immigration issues, importation, high dollar transfers, taxes, or business issues, of any size.
4. Well, sort of. As already stated, NEVER trust a realtor, and even if buying property from a family member, hire your own professional.
5. Yes, twice, once before I had Brazilian residency, and once after I had residency but both while living in the USA. I have also purchased two cars without actually living in Brazil, one used before I had residency and one new one after.
6. I figure around 1-1/2% of the purchase price for both of my apartments in fees, plus whatever your professional charges.
7. Well, ITPU, Imposto Predial e Territorial Urbano, is the property tax, and for whatever reason, one of my apartments does not pay any, the other one is about R$75 per month. Keep your eyes open there, I have never seen a pattern as to why two identical homes will have TOTALLY different tax rates, often by a lot.
8. I have used Banks to wire funds, Remtiy which kept freezing up, Western Union whose fees are pure extorsion, and still today use WISE, formerly TransferWise.
9. Scams? The list is absolutely endless and a book could be written. Never trust the seller, ever, and NEVER trust any realtor, ever.
10. My family used a shipping service to move from Iceland to the USA. The shipping container arrived after three months, empty, and the insurance never paid a single dollar. I would think twice before I shipped anything this way.
11. My first apartment was about two months from the time I said yes, but that included getting a loan, my wife is from SP and had accounts already with Santander. My new apartment was started at the end of November, and I am hoping to complete it all this month. I bought out the old owner and am assuming their loan, in my name only, that's delayed things. I will pay this apartment off this year, but I am working on establishing myself and my credit in Brazil.

Did I miss anything? All my opinions of course, but I have been doing the Brazil thing now for almost fifteen years.

@john8670 I am starting to look for a house, too, and was advised by every Brazilian that I spoke with to get an attorney to help with the purchase.  Property titles are not like in the U.S. and the provenance of them can be murky, at best.  The current owner may (or may not....) sincerely believe that they own the property free and clear but don't take their word for it - have an attorney check it out.  At least, you will know if you are taking a risk that someone else is going to try to claim ownership of the property years down the road.

02/09/23  @john8670.  Rraypo has saved me a LOT of writing -- I endorse virtually everything he said.  Well done!  I'll just add a few additional thoughts.

If someone offers you what seems like a good deal on a nice place, but doesn't have the documents, or your advisor thinks that the documents look sketchy in any way, RUN, don't walk, for the exits.  There are no excuses, including the classic "it's temporarily  caught up in settling the late owner's estate, but it will be cleared any day now."  Treat this like a scam, because it probably is.

Make sure that you're buying because home ownership fits into your longterm plan, not just in response to the American instinct for home ownership.  Run the numbers -- in reais -- and make sure that owning is better than renting for you.  When I moved here, my husband was about to start university, but we didn't know where, so renting was our most realistic option.  When he chose UEA, it was clear that we were going to be in Manaus for at least five years, and that completely changed the calculation.  I think that five years is a good timeline to consider, all things being equal.

Go into this purchase resigned to the fact that you are probably going to lose money in USD terms:  exchange rates will do that to you, unless the housing market firms up more than I expect it to, so why torture yourself about it?  We're now looking at the serious possibility of selling within the next year.  We paid cash in 2018, and I figure that we'll be lucky to break even in BRL terms on the sale price.  There's no doubt that we'll lose money in USD terms.  But in BRL terms overall, it's a different story.  I calculate that owning rather than renting has saved us at least 5% a year in cash flow:  I'm pretty happy with any investment that pays 5% a year, especially since it's real money that we've had every month to spend on other things than housing.  In addition, we've been able to live in a spacious (155 sq m) beautiful place that we love, in a convenient location close to family, with unbeatable views.  And since we'll be buying our next place with BRL too, breaking even is not that bad.

I've written extensively about my move, and I think that you've seen that.  It's very important to choose movers who have experience with Brazil; believe me, you don't want some well meaning newbie learning how it's done on YOUR shipment!  And get good estimates from all  your candidates and ask about discrepancies, so you have a good feel for what your cost will be.  My move cost ~$20,000.  I was moving an art collection, so yours may be less, but it will probably be more than you expect:  Brazil is a long way away.  Unless you move to the Far East someday, it's probably the farthest move you'll ever make.  Forewarned is forearmed.

A few more points, horror stories for you that I forgot to mention.

I have seen, with my own eyes, new construction high-rise apartment complexes sell out prior to breaking ground and then the developers skip town with everyone's money, and the buildings never get built. You know, the properties they advertise all over shopping malls, you see sales booths all over with great photos, free coffee, well-dressed salespeople, etc. Some are most certainly legitimate, but, some are not, be very careful of real estate in Brazil.

Oh, and be careful about "social housing" too, Brazil's version of low-income property, you may or may not actually own very much.

Thanks for the valuable information everyone. To play it safe I will definitely find a good lawyer that handles real estate transactions in Brazil. I’m going to try to find a firm in the US first then look into ones in brazil.

So without a real estate agent, how do you find properties and handle all the real estate transactions? The lawyer does it?

@jasonlovesdogs l was thinking the same thing.

BTW l love dogs too. We were in Brazil visiting for 2 weeks and l couldn’t stop worrying about him.

Following up on my original question.

Where did you live when you searched for a home in Brazil? Did you hire a lawyer in the United States and have them get the home for you when you still lived in the US or did you stay with someone in Brazil when you looked for a house?

Following up on my original question.
Where did you live when you searched for a home in Brazil? Did you hire a lawyer in the United States and have them get the home for you when you still lived in the US or did you stay with someone in Brazil when you looked for a house?
-@john8670

My wife is from Brazil, her family all live there, mostly around SP city and the beaches. So, places to stay have always been easy there for us. I love to travel though, so even on my first trip fifteen years ago, I began either renting or borrowing cars to drive, all over. I have purchased two cars in Brazil since then

No, I would never consider hiring or using a US attorney for any business in Brazil. You also do not need your own attorney, I use a facilitator who has specialized attorneys available for whatever the needs might be. I do not want to search for the right peg to fit into the right hole. I love one-stop shopping. My guy does it all for us, from driver's licensing to setting up businesses, and I have spread his name to many in this group, which is how I found him, he was given to me by others.

02/10/23 So without a real estate agent, how do you find properties and handle all the real estate transactions? The lawyer does it?
-@jasonlovesdogs

You can start by looking at sites like this to see what's out there.  A lot of people will warn you against them, but as long as you make no commitments and do your own reconnaissance on the ground -- and not from a distance -- I think they're good places to start your research:

https://www.chavesnamao.com.br/imoveis/brasil/

So without a real estate agent, how do you find properties and handle all the real estate transactions? The lawyer does it?
-@jasonlovesdogs

I would use a Real Estate agent to look, absolutely, but use your own attorney or facilitator to complete the purchase for you, NEVER TRUST ANY REALTOR to make your purchase. When driving, or walking around, you will always see lots of signs for sale and for rent. For searching, you can also use:

Facebook Marketplace

https://www.zapimoveis.com.br/

https://www.vivareal.com.br/

https://www.imovelweb.com.br/imoveis-venda.html

https://www.olx.com.br/imoveis/venda

https://www.mercadolivre.com.br/c/imoveis

With respect to agents vs attorneys:

The real estate agent can help you search for properties. You may be familiar with the concept of a buyers or sellers agent. Same exists here.  They split commission just like in the US, and there is no direct cost to you.  In Brazil a buyers agent is not very helpful in some cases. The reason is, many times a less reputable buyers agent is more likely to preferentially show you properties their own agency represents so they do not need to share a commission. there are websites that aggregate listings from multiple agencies, such as the ones @rraypo lists.  My preferred ones are vivareal and imovelweb.

The attorney will get involved when its time to make an offer.  They can check the home's documentation and make sure everything is ok, help to prepare or review a purchase and sale contract and so forth.  You will likely always need to be involved with at least the seller's real estate agent but you can hire your own attorney to help you execute the purchase by making sure all the docs are in order. They get involved right before you make an offer in my experience. Do not make an offer or sign a purchase and sale agreement without the attorney.  Hire an attorney located in your target area, so they have local experience and one that specializes in real estate.

Random advice:

I would suggest renting for a while in the area your targeting for two reasons.

1. Real estate pricing in brazil is imperfect, as compared to more developed market.  There is no MLS here.  I find the variance is cost between similar properties is more substantial than inn the US, for example.  In other words you could pay to much, or find a great deal.  All depends on how much time you spend looking.
2. Generally it's a good idea to 'learn' the target neighborhood.  You may buy a property and move in only to find your disappointed for any number of reasons.  Loud noise, bad traffic, no good food delivery options, grocery store is not walkable, no gym nearby, etc etc...

You can rent fully furnished and monthly via AirBNB so its pretty easy to set up for a month or two and ensure you'll be happy in the target area.

Question 1: Itau. I have heard Santander is great but I have no direct experience.

Question 2: I use wise.com.  They take between 1-2% but offer the 'market' exchange rate.  Banks often offer less than the market rate (the rate you see on google if you search 'usd brl' for example), which is one of the ways they profit from your transaction.

Question 3: yes

Question 4 yes finding a home was relatively smooth, but not quite as easy in the US.  Note, there is no 'MLS' in Brazil. No central database containing basically all listings.  The closest thing to that is vivareal or imovelweb.

Question 5, yes we purchased 2 homes successfully while living in the US.  My wife is a citizen and flew down to consummate the transactions.  I was not 'on site' for the closings, but my name is on all the documentation so we jointly own the properties.

On question 6, hidden fees, there are no 'hidden fees; but closing costs you may be unaware of.  see my answer below on #7.

Question 7: About taxes on a property purchase, in Santa Catarina, it totals about 3.75-4% in my experience (I have two properties in SC in two different towns).

question 8: About transferring money I suggest you check out wise.com.  They offer the best rates. No service is 'faster' or 'easier' than others.  They all comply with the same regulations. To make matters more simple it may help to transfer money from ones self to ones self.  In other words transfer money from a US account in either you name or your spouses name to an account in brazil in the same name.  When in the US I didn't have my name on any account in Brazil so I transfer money from mine and my wife's joint account in the US to her account in brazil with basically no issues.  In that case she was effectively transferring money from herself to herself, even though I was actually doing it.

question 10: About moving your items, I would suggest sell everything and but new in Brazil.  It's much easier that way, or at least it is what I did and I don't regret it.

Question 11: With respect to how long it may take to close a real estate transaction let me give you examples from my experience.  I bought one property from a real estate developer they received in trade from a buyer of theirs, which they refinished (flipped, essentially).  That was a very smooth transaction and closed in under 60 days.

With respect to my primary residence, I was walking don the street in my target neighborhood looking at 'for sale' signs on apartments and we called the number and met the buyers agent,  That transaction was also what I would consider smooth, but took longer.  the sellers had a tax debt to pay off.  The transaction took place during covid and the tax office was closed as a result delaying their ability to make the payment. People at the tax office were still working but everything took longer. I had only made a small down payment to secure the purchase, but I didn't have a lot of money tied up with the sellers so there was no stress in the delay.  The transaction took about 4-5 months as a result.

Finally I had a nightmare transaction.  I tried to buy an apartment from some older folks selling their residence.  They wanted to move closer to family.  They lived alone but had a lady who cleaned and took care of them.  We bought it,. paid their asking price etc.  The transaction was fully consummated.  As part of the deal they wanted to stay and extra 30 days to arrange for their new place, which is not unusual, at least not in the US (where my real estate experiences come from).  Anyhow their adult children found out they sold the home for a a price the children didn't agree with and those kids convinced them to not move out at the agreed time. They wanted us to pay more.  Long story short we battled in court for a bit and I didn't want them holding my money hostage so I agreed to let them have the place back in exchange for the money I paid and a bit extra.  That took 4-5 months to unfold.

I'm not sure if nay of that is helpful but those are my experiences. buying real estate is no 'scarier' in Brazil than most other places, just be smart about it as you would anywhere else.

@BRBC Thank you for taking the time to reply with such a detailed response. I’m sure lots of others will also find it helpful.

@rraypo Thanks for the links. I already had a couple of them, but the more options the better.

Update:

I will likely rent instead of buying a house for the first couple of months to a year because I have nowhere to stay near the areas I wan't to buy in. I would be staying at my wifes mothers house for a few weeks in Sao Paulo, Sao Paulo when I first arrive in Brazil. It would be very difficult for me to buy a home in Santa Catarina in a short amount of time while living at my wife's mothers house.

From your experience is it easier to find a house or condo quickly to rent vs buying a house or condo?

I suppose that also depends on the city you want to rent in.  Some cities are very dense with apartments, making that the much easier route.  I think you'll find that is the case with most costal/beach type areas in SC. Frankly I only have experience in two cities in SC, so you may find its simple to rent a house in the area you settle on. 

You may want to connect with a real estate office (search imobiliária or imovies and your city name) in your target area.

If you're just renting for a few months you may want to consider AirBNB.  You wont need to setup utilities, buy furniture (although, many longer term rentals do come with furniture in brazil), or sign a lengthy contract.  It wont be the least expensive, but definitely the easiest. Most hosts have monthly rates that are discounted.

For the heck of it, I did a search in Balneario Camboriu between May 1 - June 30.  Most of the places not directly on the beach we're in the 3k-5k BRL / month range. I did the same search but changed the city to Florianopolis.  There seemed to be a wider range of prices, but also more affordable options in the 1.5k-3k /month range.  Note, those are off season months in touristy areas, so those prices are likely to be quite different depending on the time of year.

@BRBC AirBnb seems like the path of least resistance! I'm downloading it now and window shopping.

Major benefits I could think of off the top of my head:

1. Its Airbnb and straight forward to use.
2. I don't have to struggle with realtors to find a place to rent.
3. I don't have to worry about rent agreements and all the confusing paperwork.
4. HUGE Advantage. I could get the AirBnb ahead of time before I even get on the plane to Brazil! To me that's the biggest plus.

The on tricky thing I have to figure out. Do I ship all my items to the house I'm renting first or do I put them in storage and wait until I actually buy a house.

02/11/23  The on tricky thing I have to figure out. Do I ship all my items to the house I'm renting first or do I put them in storage and wait until I actually buy a house.
-@john8670

If you're making your duty-free shipment, you can make it to a rental home.  You'll need to provide these documents:

§ 2 notarized copies of CPF (Brazilian Tax Payer ID Card) or protocol / application;

§ 2 notarized copies of Brazilian ID Card/RNE or its protocol with SINCRE (now CRNM);

§ 3 signed copies of Power of attorney (Procuração Pessoa Física) – The signature on this document must be legalized at a Brazilian notary;

§ 2 signed copies (with legalized signature) of Detailed Valued Inventory List, in Portuguese. This list will be made by your mover, based on the Packing List;

§ 2 notarized copies of E-ticket to Brazil – It must have the same origin and destination of the move;

§ 1 simple copy of Boarding Pass to Brazil - It must have the same origin and destination of the move;

§ 2 notarized copies of Passport - including cover and blank pages;

Note that you need to have your CRNM or the protocol that says its on its way to make this happen; once you have that, you should be all set.

You will have to put your things in storage, at least for a little while, because your shipment will not leave the US until the Customs Broker at this end has received and accepted these documents.

@john8670 Advice from the other side. I have a glass enclosed state of the art YouTube Video Production studio in the house my wife built for me. We live in a small village in the north where EVERYONE buys land and builds, no one buys completed houses. My studio is half-filled because of immigration reasons I cannot return to the United States now and get the other half of my belongings.

My advice would definitely be to try to bring it all with you now. Customs will not let me go to the USA and return to Brazil for now. Also I had an Identical Puppet created for my YouTube show. That was supposed to be "shipped", It ended up in Rio Customs for two months (Were actually 6hours from Fortaleza) I was lucky it was eventually returned to the creator. I will pick it up whenever I can return to the USA, so I would definitely recommend bringing your stuff with you.

Also, because of the land my wife purchased she is now building the THIRD house with lots of room for more.

Roddie In Retirement

I'm looking to move to Santa Catarina with my wife no later than August 2023.
I want to avoid renting from someone in Brazil like the plague I've heard bad stories about it. I also don't like the idea of "paying for the landlords property taxes"

When you first moved to Brazil:



What Brazilian Bank did you use to store your money?

Any bank.  I had a Bank of America and drawn from different banks, particularly Citi, sold to Itau.

What % do the Brazilian banks take from money you transfer over from American Banks?

Standard Wire transfer fee. Ask them

id you use some type of lawyer when purchasing a home?

It's an overkill. Most of the legal transfer paperwork is done through Cartorios ( Registry of Deed ).

Other than that, you might need them to read a legal document , at most. The Purchase and Sales Agreement is drawn by the Cartorio's clerk ( Escrivao ) anyways. 

Was the process smooth for you when you went to find a home?

I am a licensed broker.  I had my rough patches, when transferring from a Religious Order to my clients. But again, it was a sweetheart deal, so we put up with the bureaucreatic maze.

Did you purchase the home in Brazil when you were still living in the US?

Out of my domain.  i would not recommend it.   

Are there "hidden fees" when it comes to purchasing a home in Brazil?

Nope.  If any, you are being gouged.  A break down...

1.Transfer Tax or ITBI as it is called here.

2.Cartorio Fees ( Registry of Deed ), usually it is posted by State.

3.Broker's commission is paid by seller. Some might ask to subract the fee from the purchase price and pay directly to the broker ( called desmembramento )

What types of taxes do you pay on the home?

Already answered above

Do you recommend any services that are good for transferring money from US banks to Brazilian Banks? What are the typical fee's?

Again, standard transfer fees.   

What are the typical scams I should be aware of when looking to purchase a home in Brazil?

Buying land on rural areas, buying pre construction units , dealing with non legitimate sellers. paying escrow ( it is against the law ).   All of that can be avoided if using a licensed broker who will request all of the certificates ( Certidoes Negativas )

Did everything go smoothly with the service you used to move your belongings from your house in the US to your new home in Brazil?

Use your local Brazil emigre enclave to sort this through. Ask them

How long did your home buying process take start to finish?
I had closings that took us about 2 weeks.  And others ( call cash purchases ), that dragged for 6 months ( non profit, board of directors , lots of red tape )

-@john8670

Most efficient way to buy a home in Brazil? That is pretty easy to answer - pay 100% cash (I mean no financing, not dollar bills) and use a bilingual real estate broker and/or attorney. Never buy without on-the-ground support from people you know and trust. They will also become invaluable to you in the future as you find your feet.

It is the same adage as saying finding a good property manager is the most important thing to do, before you buy a property to rent out.

For me (and I did this 16 years ago), do not bring anything with you unless it is important to your business, has emotional ties or you simply cannot live without it - unless you are moving from a similar climate. I actually received 1 tea chest more than I sent, but it was a nightmare to track down and receive after nearly 6 months of shipping. If I could do it again, I would leave it all behind and buy new here...

@sprealestatebroker in your list of fees you omitted SPU laudemio costs when you buy, which are very significant if buying near the coast or rivers. More % than ITBI, and I imagine not everyone wants to live in an apartment in a huge city, so it is important to mention?

07/13/23 @sprealestatebroker in your list of fees you omitted SPU laudemio costs when you buy, which are very significant if buying near the coast or rivers. More % than ITBI, and I imagine not everyone wants to live in an apartment in a huge city, so it is important to mention?
-@Peter Itamaraca

Interestingly, there is also a laudêmio due on purchase of properties formerly part of the Fazenda Córrego Seco that make up a significant area of the city of Petrópolis RJ.  This one is due and payable to the Brazilian Imperial Family, as the original developers.

@abthree ...and I guess there are no tidal waters anywhere near Petropolis? Maybe it is because they brew good beer there?

07/13/23 @abthree ...and I guess there are no tidal waters anywhere near Petropolis? Maybe it is because they brew good beer there?
-@Peter Itamaraca

No, no tidal waters at that altitude. 😂

When Pedro II constructed Petrópolis he built it on his private land, not state land, and he conveyed the land under an "enfiteuse" ("emphyteusis" in English, to be really obscure) , a form of title that secured certain rights to the original owner, much the same as the Navy's rights over coastal property. Since it was private land, the Imperial Family didn't lose the enfiteuse when the Republic replaced the Empire. In 2003 it became illegal for private parties to create new enfiteuses, but existing ones that hadn't lapsed were grandfathered. The Navy's is specifically safeguarded in the current Constitution.

There may be a few other enfiteuses/laudêmios still active, but as far as I know the Imperial Family's is the largest one outside the Navy's, and the largest private one.

My original reply was poorly edited, so here it goes again...

    What Brazilian Bank did you use to store your money?

Raypo mentions about Itau through Wise.  So, I would investigate after his tip.  You benefit from being an account holder to the said bank, as well as to any other bank.

That is where perks are thrown at you.  So, instead of rushing to get a house, I would advise you to pay through at least a single lease term to familiarize yourself with the market, secure a banking account.  You will also be wiser about the market you are seeking  to buy into.

    What % do the Brazilian banks take from money you transfer over from American Banks?

Outside Wise, there is your typical SWIFT transfer. Typically, a 0.38% between separate accounts, or 1.1% if you are to transfer from an account of yours overseas to an account of yours domestically.

    Did you use some type of lawyer when purchasing a home?

As stated before, it is only a necessity if you can find a capable attorney to help you through the documents presented before you. One familizarized with contracts, local laws, and is proficient enought in English.

Most of your binding documents are drawn by the Registry of Deeds, a.k.a. Cartorio de Registro do Imoveis. It is imperative  to be said, your choice of Cartorio de Notas is a gopher/feeder towards the Cartorio de Imoveis. They are two separate entities.  The hiring of the Cartorio de Notas ( Registry of Deed )  is at your criteria,  whereas the Cartorio de Registro de Imoveis ( Real Estate Registry of Deed ) is predicated upon where the property is phisically located. It is at the later where the transaction records are kept.

Also, every Cartorio's Clerk ( Escrivao or and Tabeliao ), is by default a trained attorney.  For as long as your posted records are accurate, it should be no issues in the veracity of documented deeds.

The drafting of the Purchase and Sale Agreement is done by a Licensed Broker, the issuance of the Title of Deed is done by the Escrivao.

    Was the process smooth for you when you went to find a home?

I brokered transactions.  It varies whom you buy from, the jurisdiction is bought upon. Most delays and faux pas comes from either one of the following sources...

1.Poorly gathering of documentation by the broker. This requires thoroughness. Some Real Estate Firms counterbalance this with chronic defficiency a Legal Department of their own.  At this point, you cannot expect to get a discount rate on the brokerage fee. Even as the seller is bound to pay for it, it is obvious it affects the final negotiated sales price (6%). You get what you pay for. 

2.Sloppy Clerks ( Escrivao ).

3.You are buying from an Entity rather from an individual

4.The property is under an Estate Probate, and it should never go to a sale in the first place.

5.You bought your piece of property on a pres construction deal.  While this should not be a source of concern, a lot of times, the ball gets dropped here.

6.You are taking up financing, and quite bluntly, some banks are a quigmare to deal with.

    Did you purchase the home in Brazil when you were still living in the US?

Never got into this predicament, but in any event, I wholeheartedly advise against it.  You need to see the horse's teeth before you buy it.

    Are there "hidden fees" when it comes to purchasing a home in Brazil?

None.  Also, no Escrow payments!!!!!  It's illegal. 

    What types of taxes do you pay on the home?

ITBI is your standard transfer fee.  It varies according to Jurisdiction.  In Sao Paulo, it rates about 3%. 

VERY IMPORTANT TO KNOW.   There are two assigned values to the property you buy. The "Valor Venal" which is an assessed value for property tax valuations, and there is the "Valor Negociado" which is whatever amount the parties agreed upon that went into the Purchase and Sale Agreement.  The rate base being the same, it always be factoring by  using the  higher attained value. There is no haggling on this.

Registry of Deed Fees. These are posted online and rated. You need to figure it beforehand.

    Do you recommend any services that are good for transferring money from US banks to Brazilian Banks? What are the typical fee's?

Already mentioned. 

    What are the typical scams I should be aware of when looking to purchase a home in Brazil?

Several I can think of.... 

Escrow money being asked upon

Buying Rural Land without checking on documentation from the Incra

"Contrato de Gaveta" a non registered contract where the parties agree to a transfer of deed to a later date.  Not necessarily a scam in itself, but this is subject to a number of unforseable variables that leave you with no legal recourse.

Buying property if the selling party has blemised records ( debts, liens, bankrupcies ).

Pre Construction Deals. Where you have no leverage if the builder goes under. You are not some expert financial analyst. So skip this one.   

Not looking into all required Certidoes Negativas.

Buying property from Surrogate Parties.

    Did everything go smoothly with the service you used to move your belongings from your house in the US to your new home in Brazil?

They are similar in so many ways. Both countries follow the Rule of Law. Only the Bureaucracy in Brazil is maddening beyond belief.  You hit  10 Clerks ( Escrivoes ) with the same question, you get 11 different answers. And they alway think they are right above all pretenses.   Many of them are full of it. 

    How long did your home buying process take start to finish?

I had sales to close and go on Title of Deed in less than a month.  And others that took us 6 months on All Cash Deals, even with the selling party being an entity with a stellar record.   

@rraypo Can you please share your facilitator contact please. I am also thinking to buy property in SP, Brazil.

@rraypo can you place share your facilitator contact? I am also planing to buy a house in SP, Brazil.

How was your experience using Wise for money transfer to Brazil?

Large single amount or increments? Any delay or hold?

Thanks

@sprealestatebroker hi, can you elaborate on escrow deposit? I was told by a trusted friend who is RE agent that a 10% deposit is needed to secure the property and for sales agreement. 

Thank you

@Kat2202 Not in Brazil, no such thing😵‍💫

@sprealestatebroker hi, can you elaborate on escrow deposit? I was told by a trusted friend who is RE agent that a 10% deposit is needed to secure the property and for sales agreement.
Thank you
-@Kat2202

Dear Kat ( I feel like Ann Landers by answering to your piece ). I am more a Howard Cosell as far as how I tell thing..    But here it goes

Soliciting Escrow Money.   

My to the point answer.... Nonsense. Bunk. Horseshit, fill in yours here.

Escrow went out of the window long ago in Brazil.  Lotsa of monkey business against consumers warranted a change in laws governing purchase and sale of real estate.   

The Governing body, CRECI, does not sanction Escrow held transactions anymore ( it falls into some gray area, btw ).

Fair Disclosure....

This was one of the very first rules i was told by, once i made back to Brazil, on a Real Estate Office in Sao Paulo. Honestly, never cared to verify on the ruling , as I never needed to ask for it. When you are dealing with people in good faith, this expedient is completely unnecessary. 

IMHO and own  personal experience brokering Real Estate Deals ( in the US and Brazil , btw ) . When there is ill faith, nothing goes through anyways.  If you have one bucking, or stringing your chain, chances are the deal will go sour.

This  "trusted friend" of yours either do not know his/her  mettle, or she/he is  fleecing you.  There is no common rooted practice or rule that states that Escrow Deposits are Mandatory in Brazil to transfer deed of Real Estate Property. If you send me this moron, i will take him on the parking lot.

It is against the law, at least on the retail end of it, to solicit Escrow. Matter of fact, you can't find any commercial bank in Brazil  that promotes these type of deposits. There is none, because seldom anyone ever solicits it.

And on the same note,  there are no escrow companies out there that I know of, either. You would have to see an export company to find anything of semblance.

You may see this on large Commercial Real Estate Deals, but on the retail,. no one asks for. You are buying a farm, a house, or your apartment. You are in retail realm (  no offense intended ),. then. Escrow is uncalled for.

Every step of the transaction is conducted in good faith alone. Most of the paperwork, except for one or another piece, is free of charge.  Suffice to say , the seller's paperwork either comes clean or there is no quitclaim deed. Period.  No side deals ( contrato de gaveta ). Just walk away. The gun ain't in your head.

I covered this subject ad nauseum in this very own forum. You may want to parse the threads, your time allowing it.

And while at it, there is no Title's Insurance either, for the very same aforementioned reasons. 

As a recourse, an unfulfilled deal can result in, at best, a lawsuit for breach of contract.  Not retained monies. And any provisions for breach of contract must be written into the Purchase and Sale Agreement. 

That's it.   

Get yourself another broker ( preferrably locally based where you seek domicile for depth of doors to open ) . Even a Portuguese Speaking one.  Find yourself a beck in call surrogate dual speaking confidant. 

And tell the seller to fuck off.  There is plenty out there to be seen .   

And by the way, avoid pre-construction deals like a plague, if you fancy yourself as a savvy buyer, there is .  I am about to post on it, on the whys, in this very own forum. Long read, but very entertaining.  There are very few reasons to buy new from Developers here. Cost savings ain't one of them. You will overpay on these deals.

If you are then buying yourself a house, and such one is anew, chances are you are getting it through a private sale, by someone who actually oversaw the construction of it.  If you are getting from a Developer,, then buck at the request to post Escrow money.  It is all about choices, and you get them by the bucket. 

Yes, and I understand that, after some serious pavement pounding, you might have found that cozy little one. But nothing sours that feeling as if you overpay, or got pushed through like cattle.   So don't be a chump!

AND WORD TO THE WISE.....

1.When money is involved, there are no friends, family, here and abroad.  You are on your own.Keep your purse strings tight.  Be hard nosed and businesslike for your own sake.

2.When in a room, and you can't spot the mark, you are it.  So watch for cues, body language, what is said,, come backers.  Do not take anyone's word for its face value. Specially in Brazil. This ain't Midwest Rust Bell.

3.For the above #2 , again , and again, get yourself that beck in call surrogate dual lingual  party to help you through the process.  And while at it, take he/she out to dinner, pay cab fare, throw some hush hush money. Be generous. It will pay you back in spades. Do not fret over nickels and dimes.  Do not be a CBA.

4.Brazilians , specially middle and upper class ones, are all friendly and touchy feely. it's is culturally hard to pick up cues on who is actually at bat for you, and how isn't. They all get offended when you go about "talking turkey". Once again, stand your ground., This might be your largest acquisition to date,  Let no one to cloud your judgement .   Don't be a sheep.

5.Brazilians and Argentinian have a track record on sweet talk, and to sway the conversation their ways. They are no any different than Americans.. So, again, your personal vallet, surrogate bilingual, at beck in call!!! Let them do the reading for you. Step out for coffee.

6.Forget about recourse out here. Once money change hands, you bought, lock, stock, and barrel.  It's yours to keep, and with it, whatever issues it has.  So, again, due dilligence. On such account, get an experienced and seasoned broker. Whoever it might be.  Locallly based is better!!!!

7.Attorneys are optional in Brazil. You may still have one to sift through contracts. They are not mandatory on deals closing.. Your choice of a lawyer might be akin as to buying insurance. So find yourself one.

8..No contracts are edited in English here.  Any English Translated Contract here is  only valid if Rubber Stamped ( Apostiled).  For a Standard Purchase and Sales Agreement, this might be a R$ 200-500 straw purchase. Your choice.

9.Unless you are buying Commercial Real Estate, chances are you do not need an appraiser, if you are funded through a mortgage note, then the Bank will provide for such. Most of the home retail prices are based on market based comps ( for you means sifting through real estate portals ). Whatever you see on portals, on your zip code, figure you are haggling for 5-10%. Beyond that treshold,. you are reading for a desperate party ( i've done a few of those, mosty with non profits, Yes, I am a cold hard bastard ). 

That's all I can think of

Enough of free advice.

Good luck

Tony Costa

CRECI 150933-F

I am about to post on it, on the whys, in this very own forum. Long read, but very entertaining.

    -@sprealestatebroker

YES🔥🔥

I enjoy every word.

If you decide to produce a podcast/ YouTube channel

I’m subscribed!

    @sprealestatebroker hi, can you elaborate on escrow deposit? I was told by a trusted friend who is RE agent that a 10% deposit is needed to secure the property and for sales agreement. 
Thank you
   

    -@Kat2202

Just to clarify - did the word escrow come from you or the broker? It is not clear in your question if your trusted friend just mentioned a 10% deposit or if it was them who said that deposit is paid into escrow.

While it is true, there is no such thing as escrow in Brazil, it is very common for a 10-20% deposit to be payable by the buyer on signing of a purchase and sale contract, with the balance payable at an agreed later date.

This gives value to the contract - if it is broken by the buyer often the seller can retain the deposit, and if it is broken by the seller, then the buyer can sometimes demand twice the deposit in compensation. Depends on terms in the contract, of course.

    @rraypo can you place share your facilitator contact? I am also planing to buy a house in SP, Brazil.
   

    -@Primavera7

Oooppps, I just say your note. If you still need his contact, send me a private message as we cannot advertise anyone or anything here in this group. Thanks

09/06/23 One more point to add for anyone buying a unit in a condominium, certainly in a high-rise, but probably in a "condominium of houses", too.  Demand to see the Association's financials:  even if the unit owner's documents are clean, you're still only seeing half the story if you can't satisfy yourself that the Association's finances are sound.  If the seller and/or the Síndico won't show you the financials, you probably want to keep looking.

For the past eighteen years, inflation in Brazil has averaged 5.73% annually.  If the condo assessment has been stuck at the same value for very long, that's a danger sign.  A lot of condo residents see the assessment as "rent" and themselves as tenants rather than owners, and are happy to keep the "rent" low; absentee owners are even worse.  Nobody likes to tax themselves.  But when the deferred maintenance finally catches up and fixing their building is their responsibility, it's a rude awakening. 

     I am about to post on it, on the whys, in this very own forum. Long read, but very entertaining.    -@sprealestatebroker


YES🔥🔥
I enjoy every word.
If you decide to produce a podcast/ YouTube channel
I’m subscribed!
   

    -@antonioggriffin

It's on file for re-edit.  My stuff usually, being no filtered, is subject by the Censors in this Forum.

I| was out ill, and with that,, there will be some tidbits I will share on my experiences with Brazilian MDs. 

Good stuff worth reading.

On the pre Construction, I am deleting my disclaimers,, just to make the narrative short and the the point. My personnal experiences are to no one use.

    09/06/23 One more point to add for anyone buying a unit in a condominium, certainly in a high-rise, but probably in a "condominium of houses", too.  Demand to see the Association's financials:  even if the unit owner's documents are clean, you're still only seeing half the story if you can't satisfy yourself that the Association's finances are sound.  If the seller and/or the Síndico won't show you the financials, you probably want to keep looking.
For the past eighteen years, inflation in Brazil has averaged 5.73% annually.  If the condo assessment has been stuck at the same value for very long, that's a danger sign.  A lot of condo residents see the assessment as "rent" and themselves as tenants rather than owners, and are happy to keep the "rent" low; absentee owners are even worse.  Nobody likes to tax themselves.  But when the deferred maintenance finally catches up and fixing their building is their responsibility, it's a rude awakening. 
   

    -@abthree

Valid point....

Adding more specifics to it....

Most of the time, and this concern all home buyers, you will get a third party validation on your standard pro forma search and discovery, or purchasing due diligence paperwork when inqurying upon an apartment unit.

Between the third party property management company that handles the building's condo association and the Sindico's letter of dlsclosure, you will get a clean bill of health on Condo Association's Finance.

These days, due to labor liabilities, most condo associations are managed by outside companies to avoid litigating liabilities.  This is the trend, except for some very, very old buildings, where your building super has been on the payroll for some odd 30 years.  He is under direct employ from the condo association.  As a liability, upon his retirement, he is owed pension money, and if he is fired or dismissed, he is owed severance p

Some condo associations grant in no cash fringe benefits to building supers.  Such as free living in quarters ( usually either the top floor or the ground floor ).

Nonetheless, these associations are still private entities, with a registered Tax ID, paying taxes, labor, common water consumption.   

If you go through a third party management company,chances are they willl put out monthly statements with a breakdown on liabilities, revenues, expenses.  These are non pro forma statements, so they do not come out on the standard search and discovery ( due diligence ) documentation set you shall get upon your buying process. 

You need to ask for this statement, from the seller, specifically. 

Also, and this goes back in taking  a well trained licensed broker for property sightings.... You need some proactive broker to approach building living tenant-owners as for the state of affairs in the building, regarding matters such as groundskeeping, condo association finances.

Condo associations hold regular monthly meetings where finances, due improvements are broached,. and put out to a vote. 

    @rraypo can you place share your facilitator contact? I am also planing to buy a house in SP, Brazil.
   

    -@Primavera7

He is bound by the Forum rules.   

Now, he has the wisdom of an experienced real estate buyer.  One of his holdings is an apartment in Bela Vista , Sao Paulo, which he rents out ( on very affordable rates, I may add ).

You need to private message him for contact release.   

Also, your choice of facilitator needs to be local.  If you in Rio, you need someone from nearby.

Raypo has done deals in Sao Paulo and Sao Pauio's hinterlands, to my knowledge. 

    Did you use some type of lawyer when purchasing a home?

As stated before, it is only a necessity if you can find a capable attorney to help you through the documents presented before you. One familizarized with contracts, local laws, and is proficient enought in English.

Most of your binding documents are drawn by the Registry of Deeds, a.k.a. Cartorio de Registro do Imoveis. It is imperative  to be said, your choice of Cartorio de Notas is a gopher/feeder towards the Cartorio de Imoveis. They are two separate entities.  The hiring of the Cartorio de Notas ( Registry of Deed )  is at your criteria,  whereas the Cartorio de Registro de Imoveis ( Real Estate Registry of Deed ) is predicated upon where the property is phisically located. It is at the later where the transaction records are kept.

Also, every Cartorio's Clerk ( Escrivao or and Tabeliao ), is by default a trained attorney.  For as long as your posted records are accurate, it should be no issues in the veracity of documented deeds.

The drafting of the Purchase and Sale Agreement is done by a Licensed Broker, the issuance of the Title of Deed is done by the Escrivao.

    -@sprealestatebroker

Sorry to jump on this thread late but I am still confused about whether to use a lawyer or not.  I have purchased properties in Canada, USA, and Mexico. 

Mexico was a total rip-off and I lost everything. 

Canada and USA have good registries.  In the US, the title insurance is a nice safety net.

Are the cartorio records accurate enough that a title search and / or outstanding claims at the time of the contract signature is sufficient?  Or do we need the lawyer to do search on claims in process but not filed in the cartorio?  If a lawyer is needed to do that search, where does the search end?

Finally, is there a legal document that the seller can make a declaration of no outstanding claims against the property?