10 Precautions When Buying Property in Brazil
Buying property is one of the most important financial decisions in a person’s life, but it also involves risks that may compromise the investment. For this reason, understanding the essential precautions when buying property in Brazil is fundamental to ensuring a safe and trouble-free acquisition.
Below are the 10 key precautions when buying property in Brazil you should be aware of:
1. Check the Financial Health of the Developer
When purchasing a property under construction, the main risk is non-delivery. Therefore, it is essential to evaluate the financial situation of:
The developer
The construction company
The corporate group
The company’s partners
A thorough investigation significantly reduces the risk of future problems, such as construction delays or project cancellation.
2. Confirm the Legal Status of the Condominium
If the property is located within a condominium, it is essential to verify its legal regularity. Irregularities may prevent the transfer of ownership and cause future legal complications.
3. Verify the Legality of the Subdivision
In the case of land purchases, the legality of the subdivision must be verified to avoid issues such as irregular land parceling, which can prevent the issuance of the final deed.
4. Check for Debts of the Seller or Previous Owners
Before purchasing, ensure that the current or previous owners have no debts that could affect the property. Fraudulent transfers intended to evade creditors may result in the annulment of the transaction.
5. Investigate Companies Linked to the Sellers
If the sellers hold ownership interests in indebted companies, those liabilities may affect the property. It is essential to verify whether there are lawsuits or financial obligations involving companies related to the owners.
6. Verify the Property Registration
The property deed must be properly registered with the Real Estate Registry Office. Without registration, the property remains in the seller’s name and may be subject to liens, seizure, or auction due to outstanding debts.
7. Validate the Seller’s Authority to Sell the Property
Confirm that the sellers are legally authorized to sell the property. This prevents the transaction from being challenged in the future.
8. Search for Lawsuits in Other States
In addition to lawsuits in the state where the property is located, it is important to check for legal proceedings in other states that may affect the transaction.
9. Verify the Risk of Expropriation
Ensure that the property is not subject to expropriation or other governmental measures. In some cases, bad-faith sellers attempt to sell properties that are about to be expropriated.
10. Prevent Legal Disputes and Financial Losses
A prior legal risk assessment not only saves time but also protects against the total loss of invested capital. Relying on specialized legal assistance is essential for a secure purchase.
How to Ensure a Safe Property Purchase
Our team of attorneys specialized in real estate acquisitions operates throughout Brazil, helping clients identify risks and ensure a safe purchase. We conduct detailed legal analyses so you can buy property with confidence and peace of mind.
👉 Contact us today and schedule a consultation with our specialists to protect your investment.