How to Provide a Downpayment When Buying a Property in Brazil

Once you are comfortable with the terms of the Purchase and Sale Agreement, you will be required to provide a downpayment. The downpayment may be provided at the same time the Agreement is signed. For clients abroad, we recommend that the downpayment is paid after the Purchase and Sale Agreement is signed by both parties.

Don’t Pay More than 10% Downpayment

In Brazil, sellers usually ask around 5% to 10% of the total amount as a downpayment (parties are free to negotiate). To minimize risks, we suggest you pay as little as possible as a downpayment. Some sellers may be willing to go as low as 3% while others won’t move forward with the deal unless you pay their asked number (note that realtors may push you to pay more since they usually collect their commissions from the downpayment money).

In any circumstance, never provide full payment at an early stage. Most of the balance should be paid at closing, which is the moment when the property actually changes hands. If you pay in full early on or even if you provide a large payment, you will lose most of your leverage to make the seller attend the formal closing at the registration office. Remember that some sellers (unfortunately) will think of you as a “nuisance” after they have your money in their pockets.

Timeline: timeline for downpayment will depend on how you will move your funds. For clients with funds already in Brazil, this could take a couple of days. For clients transferring money from abroad, this could take around 3 to 20 business days.

The timeline will depend on how you are remitting the funds. Keep in mind that regulations for money transfer in Brazil are very complex. Wiretransfers are vetted by the Central Bank and private banks will usually ask you all sorts of documents and explanations before opening a bank account and/or releasing your funds.

Buying a Property in Brazil?
We Can Help You

[email protected]
(214) 432-8100
+55-21-2018-1225

#1  Contact us to get a free quote, or
#2 Schedule a Consultation now.

Watch our YouTube video “How to Provide a Downpayment”

A couple of minutes of watching this video can save you from wasting hundreds of thousands of dollars. Watch it now!

And, don’t forget to access our complete Buying Real Estate Properties in Brazil YouTube playlist.

Become a Pro in Brazil Real Estate!

To learn all about purchasing real estate in Brazil, check our How to Buy Properties in Brazil guide.

Learn about the advantages of buying real estate in Brazil in our Why Buying Real Estate in Brazil guide. Find opportunities and decide where to buy using our Know Where to Buy Real Estate in Brazil guide.

Buying a Property in Brazil?
We Can Help You

[email protected]
(214) 432-8100
+55-21-2018-1225

#1  Contact us to get a free quote, or
#2 Schedule a Consultation now.

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