Another busy week for me in the Brazilian property market here in Natal.We have had clients come over from Holland,Luxembourg,the U.K,Canary islands and Sweden these past 2 weeks and are very near to closing 4 beachfront sales.The rush is on to finalize the payments and ensure that the paperwork is all in order for title transfer.This brings me to the final stage of the purchasing process.....
In the Intro 1 and 2,I explained the initial steps for buying a property in Brazil with standard purchasing agreement and payment of deposit to the sellers account....
1rst step accomplished and you are now well on your way to completing the process!
Next comes the due diligence on the property and payment of transfer taxes.
Your real estate agent or property lawyer will be required to gather the necessary tax,civil,judicial declarations on behalf of the seller (and spouse if married)to submit to the notary office in preparation for the deed.
The seller must ensure that the property is lien free with all property tax paid in full,and that they have a clean bill of health with local,federal tax authorities.The declarations emitted on-line will come up either positive or negative depending on the sellers situation.If negative,the seller will need to resolve the respective problem before he/she can sell the property.
This stringent check on both property and person ensures maximum safety for the buyer as the deed cannot be prepared without full clearance.
The agent/lawyer will also run a check on the property at the local notary office to establish the chain of ownership and confirm registration.
When all the documentation is fully checked out the buyer will need to pay the municipal transfer tax which is 3%of property value.This value is increasingly based on an evaluation of the prefecture at the time of sale and not the sales price.
An official from the prefecture may come out to visit the property to make the evaluation or it maybe calculated on a standard value per m2
When this tax is paid and the receipt submitted to the notary office,the deed can be prepared in one or 2 days.
Final payment can be made at this time to the sellers account.Do not forget to transfer the balance from your personal account if you are buying in your name!Very important!!
You can get a copy of the bank transfer to show the seller as proof of payment.Once the transfer has arrived in the sellers account,you will be called into the notary along with the seller to sign the deed.Now it`s time to savor the moment and celebrate as you have just landed the purchase and have the deeds in your hands!
Don`t take them home just yet though....once signed,they need to be registered in the notary,stamped and written into the ledger.This will take a day or 2 so you need to go back one last time,pay the fees(3%)and pick up your property on paper,fully titled,legalized and registered in your name,Congratulations!
My next blog will cover some of the issues that pop up during the course of purchase.
I`m off to the beach now!
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