Brazil, Brazil

1. Brazil, Brazil T e r r a M a r a v i l h o s a

2. Fast Facts • Population: 184,184,000 • Capital: Brasília; • Area: 8,547,403 square kilometers (3,300,169 square miles) • Language: Portuguese • Religion: Roman Catholic • Currency: Real • Life Expectancy: 69 • GDP per Capita: U.S. $7,600 • Literacy Percent: 86

3. Brokers • BrokersIn Brazil Licensing is required. Brokers go through training and pass a state exam prior to becoming licensed.

4. Listings • Listings Contracts can be exclusive or non-exclusive. There is no MLS. Most Listing contracts by default grant exclusive rights to sell to listing broker with commission due even if the seller finds buyer directly. If seller desires to grant only exclusive agency with commission due only if the listing agent finds buyer, then the clause has to be explicitly stated.

5. Commissions • Commission - Commission is called Honorario. It is paid by either seller or buyer. Rates range from 5% to 10% of transaction amount. - The commission is paid when the transaction becomes eminent, i.e. when the intent to purchase or similar document has been signed. - CRECI, the regulatory body for real estate, sets the percentage amounts. It varies from State to state.

6. Practitioner Code of Ethics • The Real Estate Agents Law imposes a Code of Ethics over all professionals and companies operating in the segment. There are internal disciplinary processes, with sanctions ranging from fines to violator's license suspension and cancellation. Sanctions are imposed by COFECI, through the CRECIs.

7. Entrance/Licensing Requirements • All real estate agents must enroll with the Real Estate Agents Regional Councils. All real estate agencies (legal persons) must have a real estate agent partner as technical responsible. To enroll, the applicant must take the Real Estate Transactions Technician (High School) course. The enrollments or licenses do not need to be renewed periodically, but annually all professionals and companies undertake to pay an annuity to their Regional Council.

8. Foreign Ownership in Brazil • There are no restrictions for foreign real estate purchasers.

9. Land Registration System • Real estate registration in Brazil is carried out by private notary publics, under the form of a public permission, under Justice control. All real estate registries in Brazil are under control and fiscalization of a State Judge. The real estate registry system in Brazil is quite developed and safe, in which each real estate can only be registered at a single registry, which keeps the entire commercial history and the physical identification of each property. The access to all information of a real estate, including those concerning its owners, mortgages and other burdens, is public. In the most important cities, these services are already automated.

10. Other Industry Professionals • To close a sale, it is necessary a public deed drafted by the public notary, and its registration by the real estate registrar. The sales can be entered into directly between sellers and purchasers, but in case of intermediation such activity can only be carried out by real estate agents or agencies accredited by the CRECIs. Lawyers are not mandatory, but they are not prohibited in transactions either, and can only represent any of the parties as attorneys-in-fact, just like any other person.

11. Buying property in Brazil • Buying in Brazil is not for the faint hearted, but can be very lucrative.  There is a process to buying in Brazil which is clearly defined.  The following steps will guide you through the process: • You need a CPF (Cadastro das Pessoas Fisicas), a Brazilian ID • To get a CPF you need to have your birth certificate translated into Portuguese and legalized by the Brazilian Embassy in your country see www.brasil.org.uk for the UK embassy instructions on CPFs • You will then go to the Banco de Brasil with your passport and Birth certificate and formally apply for your CPF number, a fee is payable for this. • Within a few days you go the Receita Federal to receive your CPF number. • The CPF card will then be mailed to a Brazilian address within a few months •  Many developers will process the application for the CPF for buyers at a nominal charge. • All contracts are written in Portuguese and English with a written and binding guarantee of full title. • A standard deposit will be 10% but this can vary between 5% and 25%. Stamp duty of 5% is payable, as well as 4-5% of the purchase price for property transfer fees. Buyers can also expect to pay between 1-2% of the purchase price for legal fees. • At present, mortgages in Brazil available to international investors carry interest rates of up to 35%, so raising finance in the UK is encouraged.

12. Brazilian Regions

13. Hot Spots • The Northeast is with no doubt a place to invest in Real Estate in Brazil today Hot States in the Northeast include: Ceara, Rio Grande do Norte, Paraiba, and certainly Bhaia.

14. Hot SpotsO Rio de Janeiro Continua Lindo… • Rio de Janeiro is…Rio de Janeiro! Several Projects in Rio. Worldwide corporations make certain to be present in Brazil and Rio is the ultimate “must have” address. In the residential area things are similar. Ipanema, Copacabana, and Barra da Tijuca are some of the “eternal hot” areas to be if “location, location, location” is the call of action.

15. Obrigada See you all in Rio de Janeiro and Paraiba, Brazil in October! A Trip Organized by your Tampa Bay International Real Estate Council

16. Brazil, Brazil T e r r a M a r a v i l h o s a