[BUYING AND SELLING REAL ESTATE IN BRAZIL]
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units of a real estate project only after obtaining regulatory approval and the relevant permits referred to above and after the project development has been registered with the relevant Real Estate Register Office. d) Due Diligence. e) Project Launch. Essentially the start of the units’ sale. The sale of units may only take place after a project has been approved and the development has been duly registered before the relevant Real Estate Registry Office. f) Construction. 4. TYPES OF IM REM RIGHTS IN BRAZIL a) ownership; b) surface; c) use;
o) seizure. 5. GUIDELINES AND MAIN STEPS IN THE PROCESS OF REAL PROPERTY ACQUISITION Acquisition of a real estate property in Brazil, whether urban or rural, essentially involves the following steps: ✓ Finding a property for sale, possibly with the assistance of a real estate broker/realtor, whose assistance is not mandatory. The broker's fee and payment thereof, which is negotiable between the parties and broker, and may be up to 6% of the purchase price. ✓ The purchaser, whether an individual or company, must have a Brazilian Tax Registration Number issued by the Federal Revenue authority. The registration procedure is straightforward and can be conducted by a third party (attorney – in-fact). ✓ Execution of a private sale and purchase agreement. This is not a mandatory step but is recommended given that such an instrument entitles the parties concerned to not only establish all the conditions to be met to conclude the real property acquisition, but also to outline all the obligations with respect to the formalities to be complied with prior to the acquisition, among which, notably, due diligence. ✓ Property legal due diligence. It is highly recommended that a legal due diligence on the property is conducted by a lawyer appointed by the purchaser, which would include a detailed audit of the rights of the seller and his/her predecessors, as well as a research on any encumbrances that may be registered over the property (mortgages, claims, etc.). The property due diligence is a very important step,
d) easement; e) enjoyment; f) habitation; g) right to acquire; h) pledge;
i) right of floor slab ("Direito de Laje", which roughly translates to the Right of the Floor Slab, allows to obtain a distinct title to construction on top of or under another building even though it sits on the same land); j) special concession of use for housing purposes (granted by the Government); k) concession of use (also granted by the Government) ; l) mortgage; m) fiduciary lien; n) antichresis;
ILN Real Estate Group – Buying and Selling Real Estate Series
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