Carnival time?

Brazil has fast developed into a sound economy with a fiscal and political environment conducive to growth. Despite the country

Foreign investment into real estate is actively encouraged in Brazil; foreigners can own 100% of land and property within the country, which is not always the case in emerging markets. This is viewed as a major contributory factor, alongside the favourable currency exchange rate for foreigner investment. This has enabled direct foreign investment into real estate in Brazil to soar. A staggering US$1.3 billion was invested by foreigners in 2006 alone.

The fact that Brazilian properties are still available at low prices, combined with a pro-active Government that is taking a long-term attitude to investment into infrastructure improvements and into tourism, will result in inherent rises in property prices, thereby creating a lucrative property market. Additionally, the market is still in its infancy and indicators to its future are highly positive, all aspects that make it a prime emerging market.

Brazil: Purchase Process

Below is the standard purchase process in Brazil, and issues that may affect that purchase:

• Ownership of land and property by foreigners is permitted, and all property is freehold.
• Once a buyer has found a suitable investment property, it is necessary to apply for a certificate known as Certidao de Onus Reais. (This is not required if you are buying an off-plan property).
• For off-plan purchases it is advisable to carry out all due diligence with regards to checking building licenses are in place, the land is properly registered and has 'copia da escritura publica' and a certificate from the notary.
• Once the purchaser receives this for the chosen property and has negotiated an agreed price with the vendor, a small non-refundable deposit is usually paid to the seller.
• A sales contract is then drawn up which details the full conditions of the sale and also acts as a receipt for the deposit paid.
• Finally, it is important to draw up the property

  < Prev		Next >