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Free Guide to Hiring a Real Estate Lawyer
Real estate due diligence in Paraty follows the same basic legal framework that applies across Brazil, but local conditions make some checks especially important. Due diligence is the process of verifying the legal, fiscal, environmental and physical status of a property before you buy, lease or develop it. It seeks to confirm that the seller has good title, that there are no liens or lawsuits affecting the property, that local zoning and heritage rules permit the planned use, and that any environmental or registration obligations have been met.
Key national laws and systems involved include the Civil Code, the Public Records Law (Lei de Registros Públicos - Lei 6.015/1973), the Forest Code (Lei 12.651/2012), and municipal urbanism and heritage rules. In Paraty, a coastal municipality with protected conservation areas and an historic town center, environmental and heritage rules tend to be decisive for what is permitted on the land.
A lawyer who specializes in real estate and environmental law is important to interpret documents, detect hidden risks, and handle filings and negotiations. Common situations when you should hire a lawyer include:
- Buying or selling property, to verify title, review contracts, and handle closing formalities. - Investing in development or renovation, to check licenses, permits and heritage or environmental restrictions. - Acquiring rural land or forested lots, where georreferenciamento, CAR registration and compliance with the Forest Code matter. - Dealing with informal or possessory titles, or properties with long-term occupation issues (including potential usucapião - adverse possession). - Resolving disputes over boundaries, servitudes (servidões), unpaid taxes, or mortgage foreclosures. - For foreign buyers, to comply with specific federal rules and to manage power-of-attorney, translations and document legalization.
Important legal and regulatory issues to check when doing due diligence in Paraty include:
- Title and Registration - Transfers must be done by public deed at a Tabelionato de Notas and registered in the local Cartório de Registro de Imóveis. The propertyâs matricula (registration sheet) records ownership history and encumbrances. - Public Records Law - Lei 6.015/1973 governs the effects of registration and public notice. Registration gives legal protection against third parties in most cases. - Municipal Planning and Zoning - Paratyâs municipal master plan, zoning rules and building codes determine permitted land uses, building heights and density, setbacks and coastal occupation rules. Check the municipal Secretaria de Urbanismo or similar office for restrictions. - Heritage Protection - Parts of Paraty are subject to federal or municipal heritage listing (tombamento) administered by IPHAN or municipal cultural heritage bodies. Tombamento imposes strict limits on alterations, restorations and new construction, and can require prior approvals. - Environmental Law - The Brazilian Forest Code (Lei 12.651/2012) requires preservation of Areas of Permanent Preservation (APPs) and Reserva Legal on rural properties. Coastal and Atlantic Forest fragments near Paraty are highly protected. Environmental licensing for construction or land clearing is required at municipal, state (INEA in Rio de Janeiro) or federal level depending on the case. IBAMA and ICMBio may be involved for federal conservation units. - Rural Property Rules - INCRA and CAR registration may be required for rural properties; georreferenciamento (georeferencing) is mandatory for certain transactions. Federal rules limit foreign acquisition of rural properties in some situations. - Taxes and Fees - Expect ITBI on transfers, IPTU for urban property tax, and potential municipal or state environmental fines if irregularities are found. Notary and registration fees also apply. - Litigation and Encumbrances - Verify existence of mortgages, liens, court actions, tax debts and labor claims that can attach to the property.
Due diligence is the set of checks that confirm a property is legally transferable and suitable for your intended use. In Paraty it matters because environmental protections, heritage listings and municipal zoning can significantly restrict what you can do with a property, and because informal or irregular transfers are more common in coastal and rural areas.
Essential documents include the current matricula (registration sheet) from the Cartório de Registro de Imóveis, negative certificates for encumbrances and taxes (certidões), the public deed or promise contract, IPTU receipts, fiscal certificates, environmental licenses or CAR registration for rural land, and any building permits or habite-se certificates for constructions.
Order an official copy of the propertyâs matricula from the local Cartório de Registro de Imóveis. The matricula shows owners, previous transfers, mortgages, liens, easements and annotations of legal actions. Ask the cartório for certidões negativas de ônus and for any averbações. A lawyer can interpret the entries and request additional court certidões to identify litigation.
Check if the land lies in an Area of Permanent Preservation (APP), Reserva Legal, conservation unit or coastal protection zone. Confirm CAR registration for rural properties, and whether licensing was obtained for past or planned clearing or construction. Verify with INEA, IBAMA or the municipal environmental body whether there are pending infractions or fines.
Yes. For full legal protection, transfers of real estate should be made by public deed signed at a Tabelionato de Notas and then registered in the Cartório de Registro de Imóveis. Without registration, the buyer risks losing priority against third parties and may not be recognized as the formal owner.
Typical costs include ITBI (municipal transfer tax, varying by municipality), notary fees for the public deed, and registration fees. You will also inherit or need to clear IPTU arrears if any exist. For income-tax and capital-gains considerations consult an accountant. Exact rates depend on Paratyâs municipal rules and the property value.
Yes, foreigners can normally purchase urban property in Brazil like residents. Acquisition of rural or border properties faces additional federal rules and possible approval requirements. Foreign buyers should arrange document translation and legalization, consider using a local lawyer, and confirm any special approvals needed for the specific parcel.
Usucapião is adverse possession - a legal route to ownership by long-term occupiers in defined circumstances. If the property has irregular occupations, squatters, or a history of informal transfer, a lawyer should investigate potential usucapião claims or other possessory disputes that could affect your title.
Time varies with complexity. A basic urban property check can take a few days to a few weeks. Complex cases involving rural land, environmental licensing, georreferenciamento, or litigation can take several weeks or months. Expect additional time for municipal or state consultations and for obtaining certidões from courts and government bodies.
Options include asking the seller to clear debts and regularize permits before closing, negotiating price reduction or indemnities, including contractual guarantees and warranties, or walking away. In some cases a legal strategy can be used to cure defects, but remedies take time and cost money. Always get a lawyerâs assessment before proceeding.
Useful bodies and organizations to consult or contact when doing due diligence in Paraty include:
- Cartório de Registro de Imóveis local - for the property matricula and registration records. - Tabelionato de Notas local - for deeds, powers of attorney and notarizations. - Prefeitura Municipal de Paraty - municipal planning, zoning and tax information. - Instituto do Patrimônio Histórico e ArtÃstico Nacional (IPHAN) - for heritage listings and restrictions. - Instituto Estadual do Ambiente (INEA) - Rio de Janeiro state environmental agency for licensing and infractions. - IBAMA and ICMBio - for federal environmental and conservation unit matters. - INCRA and the CAR/SICAR systems - for rural land registration and georreferenciamento issues. - Receita Federal - for tax and fiscal registration questions. - Ordem dos Advogados do Brasil - Seccional Rio de Janeiro (OAB-RJ) - to find registered real estate lawyers and check professional standing.
To proceed if you need legal assistance in Paraty:
- Gather basic property documents you already have: contract, deed, receipts, IPTU, and any environmental or building permits. - Engage a local lawyer experienced in real estate and environmental law. Ask about their experience in Paraty, fee structure, and a proposed workplan for due diligence. - Authorize the lawyer in writing to request the matricula, certidões, and searches at the cartório, courts and government agencies. - Ask the lawyer to prepare a due diligence report that lists risks, costs to cure problems, and recommended contractual protections. - Use the report to negotiate the purchase contract with contingencies - for example, seller obligations to regularize title, remove liens, or obtain licenses before closing. - Plan for closing logistics: final deed at a notary, payment of ITBI and other taxes, and registration of the new deed. For remote or foreign buyers, arrange a notarized and legalized power of attorney and certified translations where needed. - Keep copies of all final contracts, the public deed and registration entries in a safe place and update your records if you plan further development or sale.
If you are unsure where to start, a short initial consultation with a local real estate lawyer will identify the main risks and required searches and give you a clearer estimate of time and cost. This preliminary step can save significant time and money later in the transaction.
