Brazil Real Estate Due Diligence Checklist: What to Verify Before You Pay Anything
Buying property in Brazil can be amazing — but you don’t want to “learn the system” with your own money.
Due diligence is simply the process of checking the property and the seller before you sign, pay a deposit, or wire a large amount.
This checklist is written for foreigners and Brazilians living abroad, with practical steps you can follow even if you’re not on the ground in Brazil.
What “due diligence” means in Brazil
In simple terms: you’re trying to answer two questions.
- Is the property legally clean to sell?
- Is the seller legally able to sell it?
Most problems people face come from skipping this stage or rushing it.
Start here: the matrícula and registry checks
Your first step is getting the most recent property registry record (matrícula) from the correct Cartório de Registro de Imóveis.
If you want a simple explanation of registry checks, see: Verification of Property Records and Deeds in Brazil
At this stage, you’re looking for red flags like:
- Seller is not the current registered owner
- Mortgages or liens that haven’t been cleared
- Usufruct (someone else has usage rights)
- Restrictions that prevent a normal sale
- Odd transfers that don’t make sense (fast flips, gaps, unclear chain of title)
Property-level checks
1) Liens and encumbrances (ônus reais)
Ask for proof that the property is free of encumbrances or that any encumbrance will be properly cleared at closing. Don’t rely on verbal promises.
2) Local taxes: IPTU and related municipal items
For urban property, one common check is whether local property tax (IPTU) is paid and up to date. Unpaid amounts can create headaches later.
3) Condo/HOA situation (if it’s an apartment or gated community)
Ask for proof that condo fees are paid and that there are no unusual assessments or disputes.
If the seller avoids this topic or can’t provide a clear statement, treat it as a warning sign.
4) Zoning and building regularity (case-by-case)
For houses, renovations, or new builds, you may need extra checks (permits, occupancy certificates, technical notes). This depends on the property and the city.
Here’s a practical list of documents and certificates that can come up depending on the situation: Examples of documents and certificates required
Seller-level checks
In Brazil, it’s common to verify not only the property, but the seller’s legal and financial situation. The details depend on whether the seller is an individual or a company.
Examples of what buyers often request include:
- Certificates showing no relevant legal claims or debts that could affect the transaction
- Confirmation of identity and marital status (and spouse consent when needed)
- Proof the signatory has authority if the seller is a company
Contract-level checks: don’t treat the purchase agreement like a formality
A purchase and sale agreement is not just a “reservation.” It can lock you into timelines, penalties, and payment obligations.
If you want to see what’s typically included in a Brazilian purchase agreement, read: Draft and Review Property Purchase & Sale Agreements in Brazil
Make sure the agreement clearly covers:
- The exact property description (matching the registry)
- Payment schedule and currency details
- What happens if a certificate comes back negative (or not negative)
- Who pays which costs (ITBI, notary fees, registry fees, broker fees)
- Deadlines and penalties (and what counts as default)
Money movement checks (yes, this is part of due diligence)
Even if the property is clean, your transfer can still be delayed if the bank or FX provider can’t match the transfer to a legitimate purpose.
For a full overview of transfer routes, see: How to Send Money to Brazil in 2023 – The Definitive Guide
Practical tips:
- Keep your purchase agreement and seller’s details ready to share with the bank if asked.
- Avoid sending from unrelated third parties.
- Don’t split transfers just to “get under a limit” — that can backfire with compliance.
A simple due diligence timeline (how most safe deals flow)
- Stage 1 (before deposit): Get the matrícula, basic certificates, and confirm seller identity.
- Stage 2 (before signing final deed): Finalize all certificates, confirm payment logistics, confirm closing requirements with the cartório.
- Stage 3 (closing + registration): Sign the escritura, pay ITBI and fees, register ownership, and obtain updated registry proof.
For a closing-focused checklist, see: How to Prepare for a Real Estate Closing in Brazil
Frequently Asked Questions
1. Do I need a lawyer for due diligence in Brazil?
If the property is a major investment for you, or if anything looks unusual, legal review is strongly recommended. Due diligence is where you prevent problems, not where you fight them later.
2. Can I do due diligence remotely?
Parts of it, yes — especially requesting registry documents and checking certificates. But local support often speeds things up.
3. What’s the biggest red flag?
When someone rushes you to pay before documents are checked. A legitimate seller should understand why you need verification.
4. What if the seller says “no problem, we’ll fix it after the deposit”?
Treat that carefully. It’s safer to solve title and certificate issues before you send meaningful money.
Recommended reading
- Verification of Property Records and Deeds in Brazil
- Examples of documents and certificates required
- Draft and Review Property Purchase & Sale Agreements in Brazil
- How to Prepare for a Real Estate Closing in Brazil
Important note: Brazil Safe Closing provides administrative assistance only. We do not provide legal, tax, financial, or immigration advice. If you need legal advice, talk to a licensed professional.