[BUYING AND SELLING REAL ESTATE IN BRAZIL]
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remaining areas registered as communal property.
a.2) Unit sale price, which varies according to project and the property location, its distinctiveness, as well as the characteristics of the units on which the analysis is based; a.3) The cost of the project, which primarily comprises construction costs, marketing costs, brokerage expenses and taxes; a.4) Environmental zoning requirements pursuant to local regulations (Federal and State regulations) might be also applicable); a.5) Due Diligence – Legal and Technical due diligence involves the and examination and evaluation of all legal documents and technical aspects related to a property. This audit aims to ensure that the property complies with all relevant laws and regulations, and that there are no legal encumbrances or issues that could affect the project development. It includes reviewing the title, zoning compliance, permits, and any legal disputes or liens associated with the property. Additionally, the technical audit assesses the physical condition of the property, checking for structural integrity, compliance with building codes, and any potential environmental hazards. This process helps potential buyers make informed decisions and mitigate risks associated with property acquisition. b) Project approval. Any real estate project must be approved by the relevant Municipality prior to the commencement of the project.
b) Rural properties: b.1) Subdivision - rural subdivision refers to the division of a larger rural property into smaller parcels, typically for agricultural, forestry, or similar uses. This process is governed by specific legal and regulatory framework that ensures such divisions adhere to environmental, land use, and zoning laws applicable to rural areas. Rural subdivisions must also adhere to specific guidelines that aim to protect natural resources and maintain the sustainable use of the land. This type of subdivision is distinct from urban subdivisions primarily in its purpose and the regulatory standards it must meet, focusing on rural and agricultural productivity and sustainability.; b.2) Land division - same concept as above. The development of urban real estate projects in Brazil typically occurs through a sales process that begins prior to construction of the project where buyers purchase units 'off-plan', i.e. based on architectural plans and models. A typical urban real estate project would comprise the following stages: a) Land Analysis. Mainly involves the calculation of the: a.1) Maximum amount of built area that
could be constructed on the land, as prescribed by local zoning and use category legislation;
ILN Real Estate Group – Buying and Selling Real Estate Series
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