Your Broker’s Lawyer Shouldn’t Be Your Lawyer
More and more foreign buyers of real estate in Brazil are relying on lawyers working for brokers as their legal counsel. It can be helpful (and perhaps less expensive) to have an in-house lawyer at the broker’s office assist with the documentation. But it’s important not to forget who that lawyer ultimately represents. Hint: it’s not you.
Real estate transactions in Brazil that involve foreign buyers, particularly when the funds being used for the purchase originate in the US, present a unique set of challenges. The documentation is all different and even the payment structure and timing can get complicated.
But perhaps the biggest reason to have your own lawyer is to prevent conflicts of interest. Although they may represent you in the deal, the broker is still an interested party. After all, they’re ultimate concern is getting paid their commission. They won’t sign the purchase agreement, but you can be sure they’ve included a “broker payment” clause in there.
Rather, you need someone who is looking out for your best interests. For example, does the purchase agreement contemplate contingencies in case you have trouble making an international wire transfer? Or does it provide exceptions for closing by a certain date if the notary requires additional documents that you don’t have?
Do yourself a favor and have your own lawyer review the purchase agreement before you sign it. An advisor who has worked with other foreign buyers can anticipate issues before they happen and help keep you out of trouble.