How to buy property in Brazil
Start of real estate boom in Brazil may be attributed to the beginning of then millennium, when many people discovered Brazilian Northwest. Nowadays¬† hotels, resorts and vacation homes in Fortaleza, Gaporaba and other places ¬†are growing ¬†up as quickly as sugar cane, with population growth of 10% p/a.
Yet, if anyone ¬†thinks he can outsmart a Brazilian buing property inBrazil, will be disappointed. First of all, bureaucratic system created inBrazil works well only for Brazilians. Secondly, ¬†if you are seriously committed to buy ¬†property ¬† or even make preliminary agreement ¬†with ¬†developers, ¬†it will be ¬†almost impossible to get out of a contract or have money returned. Thirdly, real estate business is so complex in Brazil, that ¬†buying property may resemble jumping in a pool without water. Which means you need to make a thoughtful ¬†research of water valves before, jumping, or signing a contract. For example, the property you buy inBrazilmay not legally belong ¬†to the seller, but to someone¬† else, because it is really expensive to register property deal. So some people decide not to get the deed of property, but exchange a Contract of Vendor, a piece of paper which they hold on to until they‚Äôre ready ¬†to sell; later on this is being repeated few times, until there may come a time when the deed holder will want to either sell the property or take ownership. Since he owns the land, he can legally confiscate or sell the nice piece of real estate you just built. So always get dead of any property you buy and do not buy property in Brazil unless you get the deed. It’s very interesting piece of discussion about buying property in Internet, especially if we consider ¬†fever which¬† infect anyone get in touch with opportunities which bring real estate market of Brazil, And if we consider easy of creating of real estate website by cheater seating in his underwear somewhere in outskirts of Rio.¬† There are many examples in our practice when people purchased property¬† and discovered on place this property is either (or both): –¬†¬†¬†¬†¬†¬†¬†¬† overpriced ¬†by thousands of dollars, –¬†¬†¬†¬†¬†¬†¬†¬† ¬†the planned ¬†development was never completed, –¬†¬†¬†¬†¬†¬†¬†¬† legal problems were never solved (e.g. developer ¬†didn‚Äôt own the property or real estate development is prohibited at all in that ¬†beachfront¬† territory) Real estate market in Brazil is full of cheaters, willing to take your money and leave you as soon as ¬†you sign agreement. Although Brazil is bureucratic country, do not believe those having “friends or relatives in government or willing to sale property quick and cheap”. ¬†You can close real estate deal ¬†in Brazil legally and without much pain, contacting reputable and (who knows how to measure reputation…) established real estate company and investing own time in investigation what you are buying; asking other people, checking classifieds, etc. Most properties in internet and newspapers are overpriced; in addition, many times there are two prices: the price the local pays and the price the the foreigner should pay.