Real Estate Attorney vs. Realtor in Brazil: Who Does What?

Quick answer: In Brazil, there are no title companies, no escrow agents, and no closing attorneys in the American sense. The roles are divided: the corretor de imoveis (realtor) finds properties and brings buyer and seller together; the advogado imobiliario (real estate attorney) does the legal due diligence, drafts the contract, and ensures the property can be safely transferred. You need both — and as a foreigner, your attorney is the more critical of the two.

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Why Brazil Has No Title Companies

“The entire burden of verifying that a Brazilian property is safe to buy falls on you and your attorney. There are no title companies, no escrow agents, and no title insurance. If you skip the attorney, nobody is protecting you.” — Zachariah Zagol, OAB/SP 351.356

If you’ve bought property in the United States, you’re used to a system where a title company does the heavy lifting: title search, title insurance, escrow management, and closing coordination. The buyer’s attorney (if there is one) plays a relatively minor role.

Brazil has none of this. There is no title insurance industry. There is no escrow system (funds go directly from buyer to seller, or sometimes through the notary). There is no centralized title search service.

The Brazilian system relies on:

1. The Cartorio de Registro de Imoveis — the public registry that records property ownership and encumbrances
2. Certidoes (clearance certificates) from various government agencies — verifying the seller’s legal status
3. Your attorney — who compiles, reviews, and interprets all of this information

This means the entire burden of verifying that the property is safe to buy falls on you (and your attorney). If you skip the attorney, nobody is protecting you.

The Corretor de Imoveis (Realtor)

What They Do

The corretor finds properties, shows them, and facilitates negotiation between buyer and seller. They’re licensed by CRECI (Conselho Regional de Corretores de Imoveis) and must carry valid registration.

Legitimate services:

• Access to property listings (many are not on public portals)
• Market knowledge — pricing, neighborhood dynamics, development plans
• Scheduling visits and coordinating with sellers
• Price negotiation
• Preparing the initial proposal (proposta de compra)
• Accompanying you to the notary for the escritura

The Fiduciary Problem

Here’s something most foreigners don’t realize: in a typical Brazilian transaction, the same corretor represents both buyer and seller. There’s no tradition of “buyer’s agent” vs. “seller’s agent” as in the US.

The corretor is paid a commission (corretagem) of 5-6% of the sale price, almost always by the seller. Their financial incentive is to close the deal at the highest possible price as quickly as possible. They are NOT your fiduciary in the way a buyer’s agent might be in the US.

What this means for you:

• The corretor wants you to buy, not to walk away
• The corretor will downplay property problems
• The corretor is not qualified to do legal due diligence (and isn’t liable if they miss something)
• The corretor’s “contract template” protects the deal, not you specifically

I’m not saying all corretores are bad — many are honest and professional. But their role is intermediation, not protection. That’s what your attorney is for.

How to Find a Good Corretor

• Verify CRECI registration (check at www.cofeci.gov.br)
• Ask for references from other foreign buyers
• Choose someone who specializes in your target area
• Prefer corretores affiliated with reputable agencies (but independent corretores can be excellent too)
• Ask how many foreign clients they’ve served — cultural and language familiarity matters

Commission: Who Pays and How Much

Standard commission: 5-6% of the sale price. By convention and usually by contract, the seller pays. However:

• For new construction (na planta), the developer pays the corretor — the commission is built into the price
• Some buyers negotiate to work with an “exclusive buyer’s corretor” and pay a separate fee — this is rare but growing
• The commission is negotiable, especially for high-value properties (R$2M+)

Important: The corretor’s commission is due when the deal closes (escritura signed). If the deal falls through after a signed purchase contract (compromisso), the corretor may still claim their commission — this is settled by CC Art. 725 and case law.

The Advogado Imobiliario (Real Estate Attorney)

What They Do

Your real estate attorney is your protector in the transaction. Their role:

1. Due Diligence

This is the core function and involves:

• Matricula analysis: Review the complete history of the property registry — chain of ownership, encumbrances, notations, irregular transfers
• Certidoes negativas: Obtain and analyze clearance certificates for the property and the seller (federal, state, municipal, labor, civil, bankruptcy)
• Fiscal due diligence: Verify IPTU payment status, condominium fees, any tax liens
• Zoning verification: Confirm the property complies with municipal zoning laws
• Environmental checks: For larger properties, verify no environmental restrictions or contamination issues
• SPU verification: For coastal property, confirm terreno de marinha status
• Rural classification: For properties near urban/rural boundaries, confirm classification
• Registration status: Confirm the property is properly registered (not a contrato de gaveta situation)

2. Contract Drafting and Review

Your attorney drafts or reviews:

• Compromisso de compra e venda (purchase agreement) — the binding contract
• Escritura publica (notary deed) — coordinates with the Tabelionato de Notas
• Condominium transfer documentation (if applicable)
• Payment terms, conditions, penalties for breach

The attorney ensures the contract protects YOUR interests — not the seller’s, not the corretor’s. Standard “template” contracts are almost always seller-favorable.

3. Foreign Buyer Specific Services

For foreign clients, the attorney also handles:

• BACEN registration of foreign investment — essential for later repatriation of funds
• Power of attorney preparation if buying remotely (apostille coordination)
• Tax planning — individual vs. company purchase, holding company structuring
• CPF assistance if needed
• Coordination with foreign legal/tax advisors for cross-border implications

4. Closing Coordination

The attorney coordinates the closing process:

• Schedules the escritura at the notary
• Ensures all documents are in order
• Verifies payment has been made (or coordinates payment at closing)
• Submits the escritura for registration at the Cartorio de Registro de Imoveis
• Follows up until registration is complete and the updated matricula is issued in the buyer’s name

Attorney Fees

Real estate attorney fees in Brazil are typically:

• Fixed fee: R$3,000-15,000 depending on complexity
• Percentage of property value: 1-2% (common for higher-value properties)
• Hourly rate: R$500-1,500/hour (less common for transactions)

For a R$1,000,000 property purchase with standard due diligence, expect R$8,000-20,000 in legal fees. For complex transactions (rural property, terreno de marinha, holding company structuring, cross-border elements), fees may be higher.

Is this worth it? Consider: the due diligence that your attorney performs would cost R$200,000+ in the US (title search, title insurance premium, escrow fees, closing attorney). In Brazil, you get more comprehensive protection for R$10,000-20,000.

Common Mistakes Foreigners Make

“Due diligence costs R$3,000-15,000. Buying a property with hidden liens or registration irregularities can cost R$50,000-500,000 to fix. I have seen foreigners lose entire investments because they skipped R$5,000 in due diligence.” — Zachariah Zagol, OAB/SP 351.356

Mistake 1: Relying on the Corretor for Legal Advice

The corretor tells you: “The property is clean, don’t worry, I’ve seen the documents.” This is meaningless. The corretor is not trained to analyze a matricula, verify certidoes, or identify legal risks. They may genuinely believe the property is fine — and be wrong.

Always hire your own attorney. The corretor finds the property; the attorney tells you whether it’s safe to buy.

Mistake 2: Using the Seller’s Attorney

Some sellers offer to have “their” attorney handle both sides. This is a conflict of interest. The seller’s attorney works for the seller. They will not flag issues that favor you — for example, a below-market price declaration, unclear boundary descriptions, or risky contract terms.

Always have your own independent attorney.

Mistake 3: Skipping Due Diligence to Save Money

Due diligence costs R$3,000-15,000. Buying a property with hidden liens, unpaid debts, or registration irregularities can cost R$50,000-500,000+ to fix. I’ve seen foreigners lose entire investments because they skipped R$5,000 in due diligence. This is the worst place to cut costs.

Mistake 4: Assuming the Notary Protects You

The Tabelionato de Notas (notary) that prepares the escritura publica does verify the parties’ identities and basic documentation. But the notary does NOT do comprehensive due diligence. They don’t search for the seller’s debts, pending lawsuits, or liens that haven’t been registered on the matricula. The notary’s role is to formalize the transaction, not to protect you.

Mistake 5: Not Registering the Property

Some foreign buyers complete the escritura but never register it at the Cartorio de Registro de Imoveis — perhaps because they leave Brazil before the registration is processed, or because they don’t understand the importance. As we explain in our registered vs. unregistered property guide, you do not own the property until it’s registered. Your attorney should handle registration and follow up until the updated matricula is in your hands.

Frequently Asked Questions

Do I legally need an attorney to buy property in Brazil?

No — there’s no legal requirement to have an attorney for a real estate transaction. But there’s also no legal requirement to wear a seatbelt on a motorcycle (wait — yes there is). The point is: just because it’s not legally required doesn’t mean it’s optional. For a foreigner buying property in a foreign legal system, an attorney is essential.

Can my attorney also find properties for me?

Some attorneys have real estate networks and can suggest properties, but this isn’t their primary function. For the broadest property search, use a corretor. For legal protection, use an attorney. Some firms (including ours) can recommend trusted corretores who work well with foreign clients.

How do I find a good real estate attorney in Brazil?

• OAB (Order of Attorneys of Brazil) registration is mandatory — verify at www.oab.org.br
• Look for attorneys who specialize in direito imobiliario (real estate law)
• Experience with foreign clients is important — cross-border issues (BACEN, power of attorney, tax treaties) require specific knowledge
• Ask for references from other foreign property buyers
• An attorney who also handles estate planning and holding companies can provide integrated advice

What happens if my attorney misses something in due diligence?

Attorneys in Brazil have professional liability for negligence. If your attorney fails to identify a lien, debt, or legal defect that a competent attorney would have found, you can sue for damages. This is another reason to hire a qualified specialist rather than a generalist.

Can I do the due diligence myself?

Technically, yes — the certidoes are public documents anyone can request. But interpreting them requires legal training. A matricula with 40 years of entries, notations, and legal references is not self-explanatory. A seemingly clean property can have problems visible only to someone who knows what to look for — fraud indicators, incomplete chain of title, irregular subdivisions, expired usufruct rights, and more.

Should I hire an attorney in the city where I’m buying?

Ideally, yes. A local attorney knows the Cartorio staff, the municipal zoning rules, the local SPU office, and the specific quirks of the local real estate market. However, remote representation (via power of attorney) is common and effective for straightforward transactions.

What about property managers — do I need one?

If you’re buying to rent, a property manager (administradora de imoveis) handles tenant sourcing, rent collection, maintenance coordination, and eviction if needed. This is separate from both the corretor and the attorney. Monthly fees: 8-12% of rental income. For foreign owners who don’t live in Brazil, a property manager is essential.

Who Do You Actually Need?

Every transaction: An attorney for due diligence and contract review. Non-negotiable.

Most transactions: A corretor to find the property and negotiate the price. You can skip this if buying directly from a developer (new construction) or at auction.

Investment properties: A property manager for ongoing rental management.

Complex transactions: A tax advisor (your attorney may handle this) for holding company structuring, cross-border tax planning, and BACEN compliance.

How ZS Can Help

At ZS Advogados, real estate transactions for foreign buyers are a core part of our practice. As the first American OAB-registered attorney in Sao Paulo (OAB/SP 351.356), I understand both the Brazilian system and the expectations of foreign clients accustomed to title companies, escrow, and buyer’s agents. We handle comprehensive due diligence, contract negotiation, BACEN registration, notary coordination, Cartorio registration follow-through, and holding company structuring — everything from initial property identification to final registration in your name. Contact us to discuss your property purchase.