Which lawyer to use for which location? Can my Sao Paulo lawyer close/title real estate in Rio?

This is a common cause of confusion with clients. Understandbly so given what we see in the marketplace. We are based in Fortaleza and can close/title on properties anywhere in Brazil using our network.  So far, so good. But many Brazilian lawyers do not have this network and ability and as a result we commonly hear from lawyers in Lisbon, Sau Paulo, London that have a client closing on Fortaleza Real Estate and need us to do the key elements of the work for them. This adds to the cost to the client and it also leaves us dependent on a 3rd party to manage the process. In some instances as well as us carrying out the work, the remote lawyer has also flown to Fortaleza at the cost of the client.  It is important that you check with your Brazilian legal firm and ensure they can close/title without needing the services of an additional local lawyer. We have an extremely effective  solution for dealing with titles in all major cities in Brazil without additional expense to the client. I am sure it is an easy argument to make that it is better to pay one lawyer and not two.

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Don’t trust your friends (too much).

It is with some reservation we make the above statement. Of course our friends have good intentions and wish the best for us. However, as good as their intentions may be, their knowledge of the situation can often be lacking. We see many instances of real estate investors who have invested based solely on a friends recommendation, assuming they will have checked everything out before doing so. They have foregone typical legal due diligence and based the investment purely on trust. Trust is an excellent starting point for any investment but without proper due diligence, it is not enough to warrant investing. It is essential you seek the services of a Brazilian lawyer when investing in Brazil. Apart from the obvious risk of losing money, many casual deals are not correctly structured and leave the foreign real estate investor unduly exposed to taxes and with issues in existing their real estate investment. A good friend will understand that you need to check details with a Brazilian lawyer. Please, we would far prefer to see you as a client before your investment, rather than one after your investment.

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Due Diligence in Brazil, is it thorough enough?

Many buyers ask us if buying real estate in Brazil is safe. The answer is yes, it is safe but only as long as your due diligence is adequate. In our 7 years of experience within the Fortaleza real estate market we have been involved in numerous transactions. We have identified a fundamental fault in the Brazilian land transfer process that normal due diligence will not uncover. Most due diligence in Brazil is carried out with the assumption that the Brazilian transfer process is as well administered and as strong as those in developed countries such as United States, United Kingdom or Australia. This is simply not the case. The Brazilian system has several weaknesses that unless correctly checked can lead to a high risk transaction.  As a result we have designed additional steps into the typical Brazilian Lawyer due diligence process to correctly protect foreign buyers. We are confident our due diligence checks will uncover issues that have proven to slip past other lawyers in Brazil. Our objective is to be more thorough, more practical and more diligent regarding your investment to ensure you are fully protected. Then and only then, can you take advantage of the great investment opportunities that are present in the Brazilian real estate sector.

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