Due diligence for buying land in Brazil (guide)

Authored by the expert who managed and guided the team behind the Brazil Property Pack

Everything you need to know before buying real estate is included in our Brazil Property Pack

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THELATINVESTOR

A team specialized in real estate investing in Latin America (Brazil, Mexico, Colombia, Argentina, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Brazil. If you'd like to learn more about us, you can check our presentation page.

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Laura Beatriz de Oliveira 🇧🇷

Commercial, Vokkan

Laura is a seasoned real estate professional with extensive knowledge of Brazil's evolving property market. From high-growth urban centers to exclusive coastal retreats, she helps clients identify strategic investment opportunities across the country. With a strong focus on sustainability and long-term value, Laura provides expert guidance on navigating Brazil's regulatory environment, emerging hotspots, and luxury developments, ensuring her clients maximize their real estate potential.

What are the exact coordinates and size of the land, and do they match what's in the official documents?

Property boundaries and size verification starts with comparing the seller's topographic survey against the official documentation registered at the Cartório de Registro de Imóveis.

The official property deed (escritura) contains the legal description with coordinates, dimensions, and boundary markers that must align perfectly with the physical survey. In Brazil, coordinates are typically recorded using the SIRGAS 2000 geodetic system, which replaced SAD 69 in 2014.

Request a recent topographic survey (levantamento topográfico) conducted by a licensed surveyor that shows GPS coordinates, total area in square meters or hectares, and all boundary markers. This survey should match the matricula (property registration) data within acceptable tolerance levels of 1-2 meters for rural properties.

Common discrepancies occur when old properties were registered using approximate measurements or when neighboring properties encroach on boundaries. The INCRA (National Institute for Colonization and Agrarian Reform) maintains the National Rural Environmental Registry (SICAR) where you can cross-reference rural property boundaries.

It's something we develop in our Brazil property pack.

Who is the current legal owner of the land, and are there any disputes or claims against it?

Legal ownership verification requires obtaining the complete ownership chain (cadeia dominial) from the Cartório de Registro de Imóveis where the property is registered.

The current matricula shows the registered owner's full name, CPF (individual taxpayer number) or CNPJ (corporate taxpayer number), marital status, and percentage of ownership if multiple owners exist. For married owners, verify if both spouses are listed, as Brazilian law requires spousal consent for property sales.

Check for any ongoing legal disputes by searching court records at the state judiciary website and requesting a Certidão de Ações Reais e Pessoais Reipersecutórias. This certificate reveals any lawsuits affecting the property, including possession disputes, foreclosure proceedings, or inheritance claims.

Review the ownership history for at least 20 years to identify potential irregularities in previous transfers. Look for suspicious patterns like rapid ownership changes, below-market sale prices, or transfers involving individuals with the same surname, which might indicate fraudulent transactions.

The Federal Revenue Service's CPF database can verify if the current owner is deceased or has tax irregularities that could complicate the sale process.

Is the land properly registered with the local real estate registry (Cartório de Registro de Imóveis)?

All Brazilian real estate must be registered at the competent Cartório de Registro de Imóveis to have legal validity and provide ownership security.

Request the updated matricula (property registration certificate) directly from the registry office, which serves as the definitive proof of legal ownership. This document shows the complete ownership history, encumbrances, liens, and any restrictions affecting the property.

Verify that the property has a unique matricula number and is not registered under an older transcription system. Properties registered before 1976 may still use the transcription system, which offers less legal security than the current matricula system.

Cross-check the matricula information against the seller's identification documents and ensure all data matches exactly. Pay special attention to property boundaries, area measurements, and any annotations regarding easements or building restrictions.

Unregistered properties (terrenos irregulares) cannot be legally sold and may face regularization procedures that can take years to complete and cost significantly more than anticipated.

Are there any existing debts, liens, or mortgages attached to the land?

Debt verification requires checking multiple government databases to ensure the property is free from financial encumbrances that transfer to new owners.

Obtain these certificates within 30 days of the planned purchase, as they have limited validity periods. Some municipalities offer online verification systems, while others require in-person visits to tax offices.

For rural properties, verify compliance with environmental and labor regulations, as violations can result in liens that attach to the land regardless of ownership changes.

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Is the land zoned appropriately for the intended use (residential, agricultural, commercial, etc.)?

Zoning verification requires checking the municipal zoning law (Lei de Zoneamento) and obtaining official confirmation from the municipal planning department about permitted land uses.

Request a Certidão de Uso e Ocupação do Solo from the city hall, which specifies the current zoning classification and permitted activities. Brazilian municipalities typically use categories like residential (zona residencial), commercial (zona comercial), industrial (zona industrial), or mixed-use (zona mista).

Review the maximum building coverage ratio (taxa de ocupação), floor area ratio (coeficiente de aproveitamento), and height restrictions that will affect your development plans. These parameters vary significantly between municipalities and can impact the property's investment potential.

For agricultural land, verify if the property is classified as rural or if it's within the urban perimeter where agricultural use may be restricted. The municipal master plan (Plano Diretor) shows planned expansions of urban areas that could affect future agricultural use.

Changes in zoning classification require formal application processes that can take 6-18 months and may face community opposition, making it essential to verify current zoning compatibility before purchase.

Are there any environmental restrictions, protected areas, or indigenous claims affecting the property?

Environmental due diligence involves checking federal, state, and municipal databases for protected areas, indigenous territories, and environmental restrictions that could limit property use.

Consult the SNUC (National System of Conservation Units) database to verify the property doesn't overlap with national parks, biological reserves, or other protected areas. Even properties near protected areas may face buffer zone restrictions affecting development rights.

Check the FUNAI (National Indigenous Foundation) database for indigenous territories and traditional community lands that could affect property rights. Indigenous land claims can take decades to resolve and may result in property expropriation with limited compensation.

Review IBAMA environmental licensing requirements for your intended use, especially for properties near water bodies, forests, or wetlands. Properties within Permanent Preservation Areas (APPs) face strict development restrictions, and violations can result in property seizure.

For rural properties, verify compliance with the Forest Code (Código Florestal), which requires maintaining Legal Reserve areas and APPs. Properties lacking required environmental documentation may face development bans and significant restoration costs.

It's something we develop in our Brazil property pack.

What are the rules and limitations on land use according to the municipal master plan (Plano Diretor)?

The municipal master plan establishes long-term development guidelines that can significantly impact property values and permitted uses over time.

Obtain the current Plano Diretor from the municipal planning department and identify the property's specific zoning designation and any special restrictions or development incentives. Master plans are updated every 10 years, with the next revision cycle beginning in 2025 for most Brazilian municipalities.

Review planned infrastructure projects like new roads, public transportation, or utility expansions that could affect property accessibility and value. Areas designated for future urban expansion may face increased development pressure and higher property taxes.

Check for any special zones like historic districts, environmental protection areas, or economic development zones that impose additional restrictions or offer tax incentives for specific types of development.

Verify minimum lot sizes, setback requirements, and density restrictions that will affect your building plans. Some municipalities have different requirements for corner lots, lots on main streets, or properties in specific neighborhoods.

Are utilities such as electricity, water, sewage, and road access available or feasible to install?

Utility availability significantly affects property development costs and timeline, requiring verification with each service provider and municipal departments.

Contact the local electricity distributor (such as CEMIG, COPEL, or Eletropaulo) to confirm power availability and connection costs. Remote properties may require expensive infrastructure extensions or alternative power solutions like solar panels.

Verify water supply options through the municipal water company (SABESP, SANEPAR, etc.) or confirm if well drilling is permitted and feasible. Obtain a water quality analysis for existing wells and check drilling permit requirements from the state water resources agency.

Check sewage treatment options, as many areas outside major cities lack municipal sewage systems. Properties may require individual septic systems that need environmental permits and regular maintenance.

Assess road access quality and legal status, ensuring the access route has permanent legal right-of-way. Privately owned access roads may face future restrictions or require easement agreements with neighboring properties.

Internet and telecommunications availability increasingly affects property values, especially for residential developments or businesses requiring reliable connectivity.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Brazil versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Is there a valid topographic survey, and has a geotechnical study been conducted if needed?

Technical surveys provide essential information about land conditions and development feasibility that standard property inspections cannot reveal.

Verify the topographic survey was conducted by a licensed surveyor (engenheiro agrimensor) within the last 2 years and includes GPS coordinates, elevation data, existing structures, vegetation, and drainage patterns. The survey should identify any slope instabilities, flood-prone areas, or drainage issues.

For construction projects, especially on rural or undeveloped land, request a geotechnical study (estudo geotécnico) that analyzes soil composition, bearing capacity, water table levels, and foundation requirements. This study is mandatory for buildings over certain sizes or in areas with known soil problems.

Properties in coastal areas require additional studies for salt water intrusion, erosion risks, and compliance with coastal zone management regulations. Mountain properties may need geological stability assessments, especially in areas prone to landslides.

Environmental surveys may be required to identify protected vegetation, water sources, or wildlife habitats that could restrict development. The municipal environment department can specify which studies are required for your intended use.

Survey costs typically range from R$5,000 to R$25,000 depending on property size and complexity, but can prevent much larger problems during construction.

Has the land ever been involved in any legal disputes or judicial proceedings?

Legal history research reveals potential ongoing disputes or resolved issues that could resurface and affect your ownership rights.

Request certified copies of all legal proceedings involving the property from the state court system, including civil, criminal, labor, and administrative cases. Search by property address, matricula number, and previous owners' names for comprehensive coverage.

Review agrarian reform proceedings if the property is rural, as INCRA maintains records of properties subject to expropriation for land reform. Properties with productivity issues or social function violations may face future expropriation claims.

Check municipal tax enforcement actions, building code violations, and environmental penalties that could result in fines, demolition orders, or use restrictions. Unpaid fines often transfer to new owners regardless of their involvement in the original violation.

Inheritance disputes are common in Brazil and can take years to resolve, during which the property cannot be legally sold. Verify all inheritance procedures were properly completed and all heirs consented to the sale.

It's something we develop in our Brazil property pack.

Is the seller willing to sign a binding preliminary contract (Contrato de Promessa de Compra e Venda)?

The preliminary purchase contract (CPCV) provides legal protection for buyers during the due diligence period and secures the purchase terms before final closing.

This contract should specify the final sale price, payment schedule, closing date, and conditions that must be met for completion. Include clauses allowing contract cancellation if due diligence reveals problems like title defects, outstanding debts, or zoning issues.

The contract typically requires a good faith deposit (sinal) of 10-30% of the purchase price, which demonstrates the buyer's serious intent and compensates the seller for taking the property off the market. Ensure deposit refund conditions are clearly defined if legitimate problems are discovered.

Include specific deadlines for document delivery, debt clearance, and municipal approvals to prevent indefinite delays. The seller should provide warranties about the property's legal status and agree to cure any title defects discovered during due diligence.

Professional legal review is essential before signing, as Brazilian contract law heavily favors written agreements over verbal promises. The contract should be registered at the Cartório de Títulos e Documentos for additional legal protection.

Can a local lawyer or notary confirm the land's legal status, and assist with the transfer and registration process?

Professional legal assistance is essential for navigating Brazil's complex property laws and ensuring proper transfer procedures that protect your ownership rights.

Hire a qualified real estate lawyer (advogado especialista em direito imobiliário) licensed by the local OAB (Brazilian Bar Association) who has experience with property transactions in the specific municipality. Legal fees typically range from 1-3% of the property value but provide essential protection against costly mistakes.

The lawyer should conduct independent due diligence verification, review all contracts and documents, negotiate terms, and coordinate the closing process. They ensure compliance with tax obligations, including ITBI (property transfer tax) and capital gains calculations for sellers.

Public notaries (tabeliães) are required for deed execution and must verify all parties' identities, legal capacity, and document authenticity before registering the transfer. Choose a notary office with experience in complex property transactions and good reputation in the local market.

The registration process at the Cartório de Registro de Imóveis typically takes 15-30 days after deed execution and requires payment of registration fees calculated as a percentage of the property value. Your lawyer should track the process and ensure proper registration completion.

Consider hiring professionals who are fluent in your native language if you're not comfortable conducting complex legal proceedings in Portuguese, as misunderstandings can have serious financial consequences.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Real Estate Boundary Measurement and Registry of Deeds
2. Virginia Property Checker - Homeowner Lookup
3. How to Find Out Who Owns a Property
4. How Can I Find a Lien on My Property
5. European e-Justice Portal - Portugal Land Registry
6. Property Liens - Be My Neighbor Mortgage
7. Difference Between Zoning Ordinance and Master Plan
8. Land Claims - The Canadian Encyclopedia
9. Portugal Promissory Contract
10. Lawyer or Notary for Real Estate