Brazil Owners: Introduce Yourselves!!

[debzor]

Originally Posted by beenthere

My experiences were recent, plus I have seen plenty of brazilian brokers bumping the prices up by 50% or more, there is no regulation against that ....

Hi beenthere

There is slight ambiguity in your point:

1/ It is quite possible, and from the seller's point highly desirable, for a broker to value a house at more than the seller's own estimated value. This is OK, and happens all over the world. It is what estate agents do!

2/ It is equally possible that an established broker recognises a bargain and buys a property for his own resale purposes, with or without rennovations. This is also OK and happens everywhere.

3/ For a broker to offer a property for sale at one price and pay the seller substantially less is not possible, nor OK!

Brazilian brokers have their own estate agents professional code of ethics, and in 3/ a court action would result in a loss of license and possibly prison, as he would have breached a number of regulations - not least failing to make clear his commission up front.

I say it is not possible because here the buyer transfers the money into the seller's own bank account before completion (the seller cannot actually touch it), and so the seller must know the amount of the funds even if he cannot read the sales contract!

Hope this clears it up?

[beenthere]

Originally Posted by debzor

Hi beenthere

There is slight ambiguity in your point:

1/ It is quite possible, and from the seller's point highly desirable, for a broker to value a house at more than the seller's own estimated value. This is OK, and happens all over the world. It is what estate agents do!

2/ It is equally possible that an established broker recognises a bargain and buys a property for his own resale purposes, with or without rennovations. This is also OK and happens everywhere.

3/ For a broker to offer a property for sale at one price and pay the seller substantially less is not possible, nor OK!

Brazilian brokers have their own estate agents professional code of ethics, and in 3/ a court action would result in a loss of license and possibly prison, as he would have breached a number of regulations - not least failing to make clear his commission up front.

I say it is not possible because here the buyer transfers the money into the seller's own bank account before completion (the seller cannot actually touch it), and so the seller must know the amount of the funds even if he cannot read the sales contract!

Hope this clears it up?

You are forgetting number four, the broker and seller colluding to put the price up by 50% or more and splitting the windfall.

[Jose C. Santiago, Esq.]

Originally Posted by debzor

Well, there you have it, folks...

A British citizen (resident in NE Brazil who is experienced in all matters 'real estate' and who has been through the whole immigration process), and an esteemed attorney, with great Brazilian experience, both agree 100% on all the above matters.

Could it be that we are both wrong?

I should also make it clear that, while I have heard of Jose Santiago and have even read some of his excellent articles during my research, we have never met or even communicated before.

Thank you, Jose, for your ringing endorsements of my comments, and I hope some readers may knock on your door to ensure that they satisfy Brazillian law with their investments. It is necessary that us Europeans learn how things are done here in Brazil, and not assume it is the same as in the EU.

By the way, Jose, where are your offices? I may have some business for you in the future...!

Hello there, my main office is in Sao Paulo, although I am admitted to practice Law in every state of Brazil and despite the fact that I mostly represent foreigners buying real estate in NE and RJ, my main office is in Sao Paulo. Simply click on the site listed below for addresses and contact information.

Thank you in anticipation for your referrals.

[debzor]

Originally Posted by beenthere

You are forgetting number four, the broker and seller colluding to put the price up by 50% or more and splitting the windfall.

Hi

Proof on other string!!

Yes, it is possible for a seller and broker to collude, but highly unlikely as a lot of Brazilians do not trust brokers from previous times, and some even refuse to sell through one believing that all estate agents are money grabbing sharks that will overinflate their property price and actually prevent a sale!

Suffice to say: emptor caveat, buyer beware

OK?

[michaelbush]

I am concerned an surprised by the answer regarding transfers of currency from Jose Santiago. My information with my banks has not changed recently. You cannot send reais from Europe to Brasil. You send euros or dollars and when it arrives it is changed. If I want to fix the rate for sending pounds to Spain for example I can do so, but reais to Brasil - NO - no bank in the UK or Spain will do it. The central Bank clears your transfer as investment and your bank's Casa de Cambio (Exchange House) will convert the currency for you, or the recipient after sight of contract, at the rate pertaining at that time. My last transfer of funds was delayed some time in the exchange system losing me some 10 cents to the pound! I was livid, but could do nothing. If someone can show me a different way to fix the rate in advance I am very interested to hear from them!!

[debzor]

Originally Posted by michaelbush

I am concerned an surprised by the answer regarding transfers of currency from Jose Santiago. My information with my banks has not changed recently. You cannot send reais from Europe to Brasil. You send euros or dollars and when it arrives it is changed. If I want to fix the rate for sending pounds to Spain for example I can do so, but reais to Brasil - NO - no bank in the UK or Spain will do it. The central Bank clears your transfer as investment and your bank's Casa de Cambio (Exchange House) will convert the currency for you, or the recipient after sight of contract, at the rate pertaining at that time. My last transfer of funds was delayed some time in the exchange system losing me some 10 cents to the pound! I was livid, but could do nothing. If someone can show me a different way to fix the rate in advance I am very interested to hear from them!!

Sorry, my friend, but you can send Reais to Brazil from the UK. I did it. Not with the high street clearing banks, but with someone like Interchange, or one of the other similar companies. Phone them up, get a quoted rate and transfer your money to them, and they send the reais to Brazil direct into the bank account you specify.

If you use high street banks then, yes, you must send $ or Euros.

[mitico67]

Originally Posted by debzor

Sorry, my friend, but you can send Reais to Brazil from the UK. I did it. Not with the high street clearing banks, but with someone like Interchange, or one of the other similar companies. Phone them up, get a quoted rate and transfer your money to them, and they send the reais to Brazil direct into the bank account you specify.

If you use high street banks then, yes, you must send $ or Euros.

Hi I've just spoke with Interchange and they confirmed can send Reais directly from uk. The only problem is for transaction under £100K you cannot make a forward contract, the only option is a spot rate.

[michaelbush]

Ok- now you are telling me that you send and fix the rate with an exchange house. Did anyone here know that this money enters without being registered at the central Bank of Brasil? I know this because I was persuaded to do just that because of the higher exchange rate, and am still trying to register the money with the Receita Federal as "clean" money over a year later! I am told that it is illegal to use these routes and unless it is purely for living costs and you are spending it, you will not be able to repatriate it as capital introduced as they will have no record of it. You would not believe the problem I am having to regularise these transactions!

[KDJX]

Originally Posted by mitico67

Hi I've just spoke with Interchange and they confirmed can send Reais directly from uk. The only problem is for transaction under £100K you cannot make a forward contract, the only option is a spot rate.

Try Sterling Exchange.

I bought £20000 worth of dollars for a year in advance on a deposit of £1000. Might be differeent with Reais I guess !

K

[debzor]

Please can anyone give more information, description, etc for the gent referred to frequently as 'Keifer' or 'Keith' here and elsewhere. A British man named Keith John or Keith Griffin has started to rip British people off in the Pernambucco area over the past 18 months or so, with vastly over inflated property prices and immigration promises. We know he is due at Natal airport to collect some 'clients' on Thurs 15/11, but he is so smooth he must have experience from elsewhere?

Apparently his wife still lives in Spain, he travels with his Brazilian secretary/PA, Marly, and he drives a white Mondeo.