[BUYING AND SELLING REAL ESTATE IN BRAZIL]
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✓ Registration of the deed of sale with the relevant Real Estate Registry Office (in contrast with the choice of Notary Officer, who may be chosen by one of the parties, the Real Estate Registry Office’s jurisdiction is defined by State Law and, therefore, cannot be selected by either party). Under Brazilian law, a purchaser of real property only becomes the property’s rightful owner after the notarial purchase deed is duly registered with the competent Real Estate Registry Office, as indicated in the real property ownership certificate. 6. FEES AND EXPENSES RELATED TO THE ACQUISITION OF REAL PROPERTY Notarial and Real Estate Registry Office fees vary from State to State and are regulated by State law. In each State, the same fees will be charged by every Real Estate Registry Office and Notary Public practicing in that State. Lawyer’s fees can be negotiated and are established by the Brazilian Bar Association in its main fee guidelines. Under the law, a lawyer does not need to be present at the execution of the deed of sale; however, to ensure the validity of negotiations and compliance with the relevant legal formalities, it is advisable to have a lawyer present. Furthermore, the presence of a lawyer also serves to ensure the accuracy of the deed’s content in relation to the description of the property, the description of the succession of rights of the seller and his/her predecessors, in addition to other legal requirements. Depending on circumstances, other costs might be applicable, such as the laudemium , applied to marine land (properties located on islands or properties
that fall under an occupancy regime or a permit issued by the Federal Government). 7. FINANCING The most common way to finance the purchase of a real estate property is through a bank loan. To grant a loan, Brazilian banks examine the purchaser’s credit history and financial situation in addition to having the current commercial value of the property appraised. Upon payment of the purchase price - loaned amount - directly to the seller, the bank secures its interest over the property by registering a guarantee with the Relevant Real Estate Office to guarantee the loan (commonly a mortgage or a fiduciary lien). At present, it is also possible to secure financing through credit instruments linked to the capital markets, particularly when the acquired property is designated for real estate development purposes. This financial approach leverages market-driven tools to support and enhance investment in property projects, aligning with specific legal and financial frameworks conducive to real estate expansion. 8. SPECIFICITIES WITH RESPECT TO RURAL LAND - PROPERTY BOUNDARIES DESCRIPTION AND ITS ENVIRONMENTAL DATA Brazilian Law prescribes particular provisions in relation to rural land, and anyone with the intention of acquiring rural land must be aware of (i) specific rules/regulations with respect to the description of the boundaries of rural land that detail satellite geo-referenced coordinates in accordance with the proper topographical rules established by the National Institute of Colonization and
ILN Real Estate Group – Buying and Selling Real Estate Series
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