The term “real estate” includes the following:
- Land
- Any buildings or structures on the land
Primary responsibility for property law rests with the federal government. In Brazil, property law is governed by the Brazilian Civil Code.
All real estate in Brazil must be registered with a real estate registry under a specific record named “matrícula.” Each real estate registry has jurisdiction over a determined geographical area.
Title registration is usually managed by a notary, appointed from time to time through specific public exam procedures.
Real estate rights must be registered with the relevant real estate registry office. All rights must be recorded at the real estate matrícula. These include the following:
- Transfers
- Guarantees, as mortgages
- Easements
- Co-ownership agreements
- Options to purchase
- Purchase commitments
Tenants also have the right to register leases to enforce non-disturbance and right of first refusal provisions.
Landownership may be proven using an updated certified copy of the real estate matrícula and the public deed of purchase.
All registered records are available to the public. Information about the ownership of real estate can be searched for a fee.
A few real estate registries allow electronic searches of land-related documents.
Yes. Law No. 5,709/71, ruled by Decree No. 74,965/74 and thereafter affirmed by opinion CGU/AGU No. 01/2008 – RVJ issued by the Attorney General’s Office of Brazil (Advocacia-Geral da União) allows the acquisition of rural land by foreigners and by foreign-controlled Brazilian companies, if certain legal requirements are met. There are requirements that pertain to: (i) the area where the rural land is located; (ii) the size of the rural property; (iii) acquisition or lease purposes; and (vi) the authorization of relevant authorities.
Yes. The Brazilian Federal Constitution secures the right of the government to expropriate real property subject to fair market value payment, which can be disputed subject to certain requirements.
Generally, interest is held by the following:
- Freehold
- Leasehold
- Condominium
The following usual structures are used in investing in real estate:
- Limited liability entities
- Corporations
- Investment funds
Most real estate financing is arranged through banks. Interest rates are generally fixed for a specified period of time or are variable, based on a “prime rate” set by the lending institution on a periodic basis. Lending institutions typically take collateral security in real property by means of a fiduciary lien or mortgage.
Generally, the buyer will prepare the initial draft of the purchase agreement.
For properties held in freehold, government authorities can require the owner to clean up contamination even if the owner did not cause it.
In addition, the owner may be held liable for past real estate tax and condominium fees.
Allocation of responsibilities and respective reimbursements and indemnities may be agreed between the seller and the buyer in the respective contracts.