Three Ways to Protect Yourself When Buying Brazilian Real Estate

Americans are looking to escape and Brazil is one of a few target destinations. For many in the US, a house or condo in Brazil will serve both as an investment and a vacation getaway. Perhaps the greatest factor influencing foreign buyers right now is the exchange rate. The US dollar is worth more than five times the value of the Brazilian real.

But the process of buying real estate in Brazil isn’t always smooth sailing, particularly for US buyers. Before taking the dive, you need to make sure that you know what you’re getting. And this means confirming that the seller actually owns the property and there aren’t any outstanding liens or tax debts.

In the US, title companies routinely run title searches to ensure that title to the property is clean. The concept is the same in Brazil. You need to know who owns the property, if there are any liens, and if there are any tax debts. The challenge, however, is that Brazil doesn’t have a single, central database that can be quickly and easily searched.

And this is where law firms and service companies can play an important role. They can obtain documents from government agencies and notary offices that will help confirm ownership, liens, and tax debts. Think of it as necessary due diligence before you get started to determine whether the transaction is worth the investment or not.

If you’re thinking about buying a property in Brazil, consider starting with our Real Estate Due Diligence Package. It’s an all-in-one solution designed to protect US buyers of real estate in Brazil.