Documents – Property Purchase in Brazil
Hiring a lawyer specialized in real estate transactions is essential, as real estate agencies do not act with independence or impartiality when reviewing legal information, since their primary interest is the payment of brokerage commissions.
Do not become another victim of real estate fraud, which may result in the total loss of the invested capital.
Always require and carefully review the documents listed below before proceeding with the transaction.
Property Documents
a) Property registration certificate issued by the Land Registry Office, including a certificate of liens and encumbrances;
b) Certificate of clearance of municipal taxes;
c) Certificate of non-expropriation;
d) Laudêmio certificate for properties located in coastal or Navy-controlled areas;
e) The three most recent utility bills (water and electricity).
Seller’s Documents
a) Civil court clearance certificate, including tax enforcement actions (state and municipal) and bankruptcy proceedings;
b) Criminal court clearance certificate;
c) Federal court clearance certificate (civil and criminal);
d) Labor court clearance certificate;
e) Certificate of absence of protested titles;
f) Federal tax clearance certificate;
g) Proof of residence.
Important note – Seller as a business owner
If the seller is a partner or shareholder of a legal entity, the buyer must also request the company’s clearance certificates, as corporate debts may be enforced against the partners.
In addition to the certificates listed above, the following must be obtained in the name of the company:
a) Social Security (INSS) clearance certificate;
b) FGTS (severance fund) compliance certificate;
c) State tax clearance certificate (ICMS).
Previous owner
If the current owner acquired the property less than one year ago, all clearance certificates must also be obtained in the name of the previous owner.
In many cases, the true owner transfers the property to a third party with no debts in an attempt to mislead the buyer, who then requests certificates only from the most recent owner.
Stable union
If the current owner lives in a stable union, the partner must formally participate in the sale of the property, in order to avoid future legal invalidity.
Residential condominium units
a) Clearance certificates in the name of the condominium association;
b) Statement issued by the property manager or condominium manager (accompanied by the meeting minutes confirming their appointment) certifying the absence of outstanding condominium fees up to the date of possession;
c) The most recent condominium meeting minutes, for awareness of planned or approved construction works.
Rural property
a) Property registration certificate with lien clearance;
b) CCIR;
c) CAR;
d) ITR;
e) Certificate of non-expropriation;
f) Laudêmio certificate for properties located in Navy-controlled areas;
g) The three most recent water and electricity bills;
In addition to other documents that may be required depending on the specific circumstances.
Conclusion
👉 It is better to lose a deal than to lose all invested capital.
Do not become another victim. Whenever possible, engage a lawyer specialized in real estate law before finalizing the purchase.
Dr. Héctor Luiz Borecki Carrillo
Lawyer and Partner at Carrillo Sociedade de Advogados