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 may be required to provide a downpayment under its terms. The downpayment may be provided at the same time the Agreement is signed. For buyers abroad, a safer starting point is that the downpayment is paid after the Purchase and Sale Agreement is signed by both parties. Have a licensed Brazilian lawyer check the agreement and the seller and property documents before you commit or send money.

Reviewed by Luciano Oliveira, Esq., LL.M. · October 2026

An initial payment may be described as an “entrada” (part of the price paid upfront) or “sinal” or “arras” (a deposit that can have specific legal consequences). These labels do not always mean the same thing. Have your lawyer explain how your payment will be treated, when it counts toward the price, and what happens if the purchase does not go ahead.

The specifics often emerge from negotiations between the buyer and seller. Have the result recorded clearly in the agreement.

This guide is general information, not legal advice. Before acting on it, retain your own lawyer licensed in Brazil to assess your circumstances and advise you.

U.S. earnest money and Brazil’s sinal: similar purpose, different rules

If you have bought a home in the United States, you may think of the Brazilian sinal as “earnest money.” Both can show that the buyer is committed and count toward the purchase price. That does not mean they come with the same protections or cancellation rights.

What the Brazilian names mean

• Sinal: the everyday term commonly used for a deposit that confirms the deal.
• Arras: the legal term used alongside sinal in Brazil’s Civil Code. It is not necessarily a separate payment. The legal consequences depend on the agreement and the circumstances, not just the name on the receipt.
• Entrada: the upfront part of the purchase price. It may include the sinal, but the whole entrada is not automatically treated as arras.

Who holds the money, and when can you get it back?

In many U.S. purchases, earnest money is held by an escrow or title company, broker, or other agreed holder while the purchase moves toward closing. Contract conditions—often called contingencies—may allow a refund if financing, inspection, or another agreed requirement fails. The buyer must follow the contract’s deadlines and notice rules. State law and the contract matter; earnest money is not always refundable, and it is not always the limit of the buyer’s liability.

In Brazil, the sinal is almost always paid directly to the seller. Do not assume an independent holder will keep it separate until closing. Escrow arrangements exist, but the majority of transactions in Brazil do not use escrow. If you want that protection, its availability and terms must be specifically checked and arranged. A refund clause does not mean money already paid to the seller will be easy to recover.

The Brazilian contract should explain what happens if document checks reveal a problem, financing fails, or either side refuses to complete the purchase. Do not assume a U.S.-style inspection or financing cancellation right carries over to Brazil.

Two types of arras you may see in a contract

Arras confirmatórias confirm the commitment to complete the deal. They do not, by themselves, let either side walk away simply by losing or returning the deposit. A party who breaks the agreement may face consequences beyond that amount.

Arras penitenciais apply when the contract expressly allows withdrawal. The party withdrawing generally loses the arras paid or returns the arras received plus an equal amount. Under this deposit rule, further compensation is not due for exercising that agreed withdrawal right. Have your lawyer check whether the clause actually gives you that choice.

Before paying, ask your Brazilian lawyer: Who will hold this money, what kind of payment is it, and exactly when can I get it back? The refund section below explains the main situations.

1. Negotiate the amount, not just the price

You may encounter requests around 5% to 10% of the total amount as a downpayment, but this is a negotiating reference, not a legal requirement or a nationwide rule. To minimize risks, consider paying 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 requested amount. Ask whether any part of the payment will go toward the realtor’s commission, who owes it, and how that affects a refund.

These figures can fluctuate based on the region, type of property, and the terms agreed upon between the buyer and seller. A resale, a financed purchase, and a developer’s installment plan may have very different payment schedules. Do not assume the same percentage is appropriate for all three.

Avoid providing full payment at an early stage. For a typical resale, most of the balance should be paid at closing under a sequence checked by your lawyer.

If you pay in full early on or even if you provide a large payment, you can lose much of your leverage to make the seller attend the formal closing. Paying or signing the deed does not by itself transfer ownership. In a normal property sale, the transfer document must be registered at the property registry.

Allow time for the money to arrive

The timeline for downpayment will depend on how you will move your funds. For buyers with funds already in Brazil, this could take a couple of days. For buyers transferring money from abroad, allow time for account setup, document checks, conversion, and receipt of the funds. Confirm the actual timetable with the institutions involved before agreeing a payment deadline.

The timeline will depend on how you are remitting the funds. Banks and other authorized institutions may ask for documents and explanations before opening a bank account or releasing your funds. The Central Bank regulates the system; it does not personally approve each buyer’s wire transfer. Sending the money is not the same as the seller receiving it. Agree what counts as payment on time.

2. Confirm how the money will reach the seller

When purchasing real estate in Brazil, understanding the available downpayment methods is important, especially for buyers unfamiliar with Brazilian banks. Agree the amount, recipient, payment deadline, and refund terms in the contract.

This initial payment is typically made via a bank transfer, and for international buyers, this means utilizing wire transfers through their home banks or internationally recognized financial institutions. For the Brazilian currency-exchange part, use an institution authorized to handle it. Check the required documents and receiving arrangements before sending the funds.

Also confirm the associated fees, conversion rates, and any potential taxes when determining the most cost-effective and efficient downpayment method. Ask the payment provider for a full quote and your lawyer to check that the payment plan matches the agreement.

3. Put payment safeguards in writing

Do not send money just to “hold” the property without legal advice. A small reservation payment can still create commitments. Your lawyer should confirm what checks must be completed before payment and what happens if a problem is found.

One common pitfall is underestimating the time needed for international funds transfer, as Brazil has specific regulations governing these transactions. An authorized institution can explain its requirements, but cannot guarantee that there will be no delays. Also allow for changing conversion rates, as even small shifts can significantly affect the amount being transferred, especially when dealing with large amounts.

Another risk is miscommunication or misunderstandings regarding the agreed downpayment percentage and timing of such payment. This can be due to language barriers, cultural differences in negotiation styles, or simply not being familiar with the payment process in Brazil. To avoid such issues, international buyers should always insist on having clear, written agreements detailing the downpayment terms, drafted or reviewed by an independent Brazilian lawyer.

Verify the recipient’s name and account details through a trusted contact before paying. Independently check any last-minute change of bank details. If money is to go to a broker, another person, or several accounts, have your lawyer confirm the authority and written instructions. Keep the signed agreement, transfer records, and the seller’s written acknowledgment of receipt.

4. Understand what happens if the purchase stops

A deposit is not automatically refundable. Ask your lawyer whether the payment is simply part of the price or also functions as arras (a deposit governed by specific rules). The contract, the reason the sale stops, and any special rules for the purchase all matter.

• If the buyer breaks the agreement: the seller may be entitled to keep the arras. In some cases, further compensation or completion of the agreement may be sought. Losing the deposit is not always the limit of the buyer’s exposure.
• If the seller breaks the agreement: the buyer may be entitled to the return of the arras plus an equivalent amount, with other amounts potentially due under the law. Your lawyer should explain which remedy fits the case.
• If the contract allows a right to withdraw: the party withdrawing generally loses the arras it paid or returns the arras it received plus an equal amount. Your lawyer should confirm that the contract actually grants this right; it is not an automatic cancellation option.
• If an agreed condition fails: for example, an unresolved problem found in the documents, the agreement should explain whether you may stop and receive a refund, by when, and from whom.

Developer and off-plan purchases may follow additional rules. Do not assume the same refund terms apply to every property. A right to a refund also does not mean the money will be returned promptly or without a dispute.

Watch: How to provide a downpayment

Use the video as an introduction alongside the updated guidance above. Confirm the amount, timing, and legal consequences with your lawyer before paying.

Sources and related guide pages

Checked October 15, 2026: Brazilian Civil Code, articles 417–420 and 1,245 (deposits and ownership registration); Central Bank guidance on international transfers; currency-exchange documents; and Itaú’s escrow service (evidence of availability, not a recommendation or confirmation of eligibility).

Continue with legalizing and translating documents, or review the guides to the purchase agreement and sending money to Brazil.

U.S. comparison: National Association of REALTORS® — Escrow and Earnest Money. U.S. practice varies by state and contract; this comparison does not replace advice for either jurisdiction.