The Safe Way to Buy Property in Brazil

 Ruban Selvanayagam has written an informative piece on safely purchasing land in Brazil:

However, it should be noted that great care should be undertaken when buying land in Brazil to avoid what is ubiquitously referred to as a golpe (a false transaction created around corrupt/illegal business practices).  The prominent risk is via the purchase of an irregular plot of land – such as in areas which are environmentally protected and not permitted for residential and/or commercial construction.  The article illustrates the case of the Billings, Guarapiranga and Cantareira mountainous regions of São Paulo – when in the 1970s, the government decided to ban construction due to environmental protection obligations.  Although many owners have since been able to negotiate their legal positions of property and land rights, their battles have been long and arduous.

The recommended first step to buying Brazilian land is to request a matrícula individual do lote (individual registration of the lot) – which will show the origin of how the plot was formed; ensure that there are no encumbrances and will effectively guarantee that it is not irregular.  With this document, the buyer can avoid 95 percent of the problems that can often be discovered when purchasing Brazilian land.  It can be obtained at the local cartório (notary office) which has a legal obligation to furnish this information to those who are interested in purchasing.  Another suggestion is to contact the local prefecture (prefeiture) in order to verify any building restrictions which may be in place such as with height (such limitations may affect the future development value of the plot).  Providing this information is also a legal obligation on the part of the local authorities.  In addition to the necessary permits (alvarás) and licences (licenças), checks should be made to ensure that there are no issues related to surrounding infrastructure and utilities (water, gas, electricity, waste disposal, transport etc.). 

Brazil's 2011 Foreign Direct Investment Jumps 20%

FDI is increasing more than expected:

Brazil will likely see foreign direct investment jump to $70 billion this year after reaching $48.5 billion last year, the central bank's monetary-policy director, Aldo Mendes, said Tuesday.

This compares with a previous government estimate of $55 billion in foreign direct investment

Foreign investment in Brazil has jumped as overseas investors seek growing markets due to a global economic slump. 

According to the Instituto de Pesquisa Econômica Aplicada (IPEA), the flow of FDI is not likely to continue:

The IPEA reported last Wednesday that Brazil stands to be a major destination for foreign investment in 2012. The International Perception of Brazil Monitor study found that the likelihood of Brazil receiving foreign investment rose from 35 points in May to 43 points in August.

Further, the percent of interviewees worldwide who consider Brazil one of the top five destinations for foreign investment rose to 70 percent in August – a 14-percent increase from May.