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       Countryside Real Estate Acquisitions by Foreign Individuals in Brazil.                                                                               Brazil • Lawyers

The Law nº 5.709, of October 7 of 1971 and the Decree 74.965, of November 26th of 1974 are the Brazilian laws currently in force when it comes to the acquisition of countryside properties by both foreign companies and individuals.

The most relevant rules pertaining to any countryside real estate acquisition in Brazil by a foreigner individual according to these laws are:

a) Only foreign individuals with official Brazilian residency can acquire countryside real estate properties, limited in extension by the equivalent of 50 land modules (maximum extension limit for a single property, or group of properties summed up).

b) The land must be put to productive use.

c) As a rule, the sum of the properties owned by foreigners in the same municipality must not exceed 25% of its total area. Within these 25%, no more than 40% of the land can be owned by companies and individuals of the same nationality.

d) If the property has an extension larger than 3 modules, the acquisition is conditioned by a previous INCRA approval. If the property has more than 20 land modules, a project of use must also be presented for previous analysis.

e) Once the official INCRA permission is granted, the parties have 30 days to have the property title made with the Notary Public (the “escritura”) and additional 15 days to proceed with the title registration. The INCRA approval, when required, must be expressly mentioned in the “escritura”, otherwise the title can’t be registered.

f) The inclusion in the deed of the foreigner’s Brazilian identification card number and official proof of residency in the country is obligatory (the ID for residents is the RNE).

g) The INCRA approval, when required, is conditioned by a declaration from the foreigner stating: 1) if he/she owns other countryside real estate properties; 2) if with this new acquisition the total of 50 land modules won’t be exceeded, and; 3) which is going to be the productive destination of the property in case it’s larger than 20 land modules.

h) Any acquisition deviating from this set of rules is deemed null and void by the Law. If by any chances a property ends up registered despite the outlined legal discipline, the Notary Public and the Title Registrar will be hold responsible for any financial damages suffered by the parties, irrespective of any criminal liabilities for the misuse of their official attributions. The property vendor must refund any monies disbursed by the foreign buyer (Law nº 5.709, art. 15; and Decree 74.965, art. 19).


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