How to Obtain Certificates of Clearance When Buying a Property in Brazil
The main concerns related to the property are unpaid taxes, liens, and litigation (or potential litigation). Some of the certificates obtained at this stage will assess if taxes are paid to date. Other certificates will help you assess if the property has outstanding liens or disputes by third parties.
Timeline:
Certificates can take up to 5 days to be obtained. Realtors usually provide such certificates as part of their services.Notes:(i) some of these certificates will be mandatory for the registration to be completed at the closing at the registration office. In the past these certificates used to be optional.Today, the registration office will require the certificates to be presented in order to reduce the risks for the buyer. Some sellers and realtors will want to provide you with the certificates only after the Purchase and Sale Agreement has been signed and the downpayment provided.The buyer can still obtain the certificates since these documents don’t require the seller’s consent to be issued by the respective authorities.
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Main Certificates Needed Related to the Property
Important to note that the actual list of certificates applicable to a real estate transaction in Brazil will depend on the state where the property is located. For example, while in Rio de Janeiro more than 10 certificates may be required for a closing (for both the property and seller), transactions in Acre will require just a couple.
While the “minimum required” will be enforced by the registry where the closing takes place, buyers are free to ask for more certificates than such minimum. Don’t forget to check the sample list of seller-related certificates here.
Certidão de Ônus Reais: This certificate, often deemed vital for real estate transactions, provides detailed insights about the property’s financial and legal status, like liens, mortgages, or other encumbrances. By obtaining this, buyers can be assured that the property is free from third-party claims, ensuring a smoother transaction.
Certidão de Inteiro Teor: This is a detailed extract of the property’s registration, providing comprehensive information about its history, ownership changes, and other relevant data.
Certidão Negativa de Débito Municipal: Focused on municipal-level financial obligations, this certificate covers any outstanding local taxes such as IPTU (Urban Property Tax). Given that municipal regulations can vary significantly from one city to another, this certificate’s presence provides assurance to buyers that local tax obligations related to the property have been met.
Certidão de Débitos Condominiais: Before buying a property, especially in a condominium, it’s essential to confirm there are no outstanding condominium or homeowners’ association fees. This certificate is proof that the seller has kept up with their monthly dues and other financial obligations to the association. A clear record is a good indication of the property’s financial standing within its community.
Verifying a Property in Brazil?
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[email protected]
(214) 432-8100
+55-21-2018-1225
#1 Contact us to get a free quote, or
#2 Schedule a Consultation now.
Common Questions
What are ‘Certidões Negativas’ in the context of Brazilian real estate?
‘Certidões Negativas’ are essentially negative certificates confirming the absence of debts, liens, or other legal issues related to a property or individual. They play a crucial role in ensuring the property you’re interested in purchasing doesn’t come with hidden liabilities.
Why are these certificates essential for foreign citizens buying property in Brazil?
For foreign citizens, these certificates offer an additional layer of security and transparency. They help ascertain that the property in Brazil is free from local legal entanglements or financial liabilities which might not be immediately evident.
Is the ‘Certidão de Débitos Condominiais’ always necessary?
It’s primarily needed for properties within condominiums. It confirms there are no outstanding homeowners’ association fees, ensuring a buyer doesn’t inherit unpaid dues.
Are property taxes covered in these certificates?
Yes, the ‘Certidão de Débitos de Tributos Imobiliários’ specifically confirms there are no outstanding real estate taxes, ensuring a clear financial path for your purchase.
How does the ‘Certidão de Situação Fiscal do Imóvel’ help in a transaction?
This certificate gives insights into the property’s current tax status. It ensures there are no concealed fiscal liabilities, providing financial clarity for foreign buyers.
How crucial is the ‘Certidão de Inteiro Teor’ in understanding a property’s history?
Vital. It offers a comprehensive view of the property’s past, including ownership changes, ensuring transparency in its transaction history.
Are there certificates for properties outside condominiums regarding monthly dues?
While the ‘Certidão de Débitos Condominiais’ is mainly for condominiums, other properties might have maintenance or community fees. It’s always wise to check for any community-specific financial certificates.
Finally, with so many certificates, should I consult with a local legal expert?
Absolutely. Given the complexity and the importance of these certificates, especially for foreign citizens unfamiliar with Brazilian processes, having a local attorney or real estate expert guide you can be invaluable in your transaction.