Buying Real Estate in Brazil: The Risks of Purchasing Without a “Matrícula” (Property Registry)

Are you a foreigner interested in buying real estate in Brazil? It’s an attractive market, but it’s crucial to understand the local legal rules to avoid costly mistakes. One of the main risks involves buying a property without a “matrícula” – the official property registry in Brazil.

Properties Without “Matrícula” in Rural or Remote Areas

In some rural areas or locations far from major cities, it is common to find properties that do not have a matrícula, meaning they are not officially registered in the property registry. Many of these properties are offered at more competitive prices, which can attract buyers looking for a good deal. However, before purchasing a property with such characteristics, it is essential to follow our legal recommendations to ensure the security and legality of your investment.

What Is the “Matrícula” in Brazil?

In Brazil, every property must be recorded in a Real Estate Registry Office (Cartório de Registro de Imóveis). This registration, known as the matrícula, is a unique legal document that officially identifies the property.

The matrícula includes:

• The exact location of the property;

• Its area (land or built-up);

• Ownership history;

• Any encumbrances, debts, or legal disputes affecting the property.

In other words, the matrícula is the property’s legal identity card. Without it, it is legally uncertain whether the seller is the true owner, and whether you can safely acquire the property.

Thus, ownership is not legally recognized if the property lacks a matrícula, even if you have a notarized deed (escritura pública).

Can You Buy Property Without a Matrícula in Brazil?

Yes, but with significant legal and financial risks. Some older or rural properties may be sold only with a public deed of sale (escritura pública de compra e venda), without having been registered in the property registry. This is considered a legally fragile situation and should be approached with caution.

The 5 Main Risks of Buying Property Without a Matrícula

1. No legal proof of ownership: Without a matrícula, you are not legally recognized as the owner.

2. Potential legal disputes: Third parties may claim ownership, and the sale could be legally challenged or annulled.

3. No access to bank financing: Banks usually refuse to finance or process payments for unregistered properties.

4. Blocked international transfers: Many financial institutions require clear documentation. Without a matrícula, international payments can be blocked.

5. Difficult or impossible resale: A property without a matrícula cannot be easily resold or legally transferred in the future.

   
   

Why This Topic Is Crucial for Foreign Buyers

Many foreigners believe that signing a public deed before a notary is enough to secure a property purchase in Brazil. This is not true. Only a properly registered matrícula legally guarantees your ownership.

Moreover, if you intend to transfer money from abroad, banks and regulatory authorities may demand formal proof that you are investing in a legally compliant and registered property.

Our Legal Advice for Safe Property Purchases in Brazil

Before completing a property purchase in Brazil, make sure to follow these steps:

• Request an up-to-date matrícula certificate;

• Check for any debts, encumbrances, or legal disputes involving the property;

• Have all documents reviewed by a lawyer specialized in Brazilian real estate law;

• Never sign a private contract or even a notarized deed without ensuring the property is duly registered.

Conclusion

Even if a deal seems attractive at first glance, the legal risks are significant. For a safe, transparent, and legally valid purchase, always ensure the property has a valid matrícula.

For legal assistance with real estate purchases in Brazil, please contact: iurevieira@pontesvieira.com.br