How business transactions are conducted in Brazil

1. BASIC TRANSACTION INFORMATION

   Commissions:

   Commissions are paid by the seller and are negotiable. The average commission for both residential and commercial transactions is 6%.

   Property, ownership, title insurance:

   • Investors or buyers need government approval. Buying large areas or special areas like coastline real estate might be prohibited.
   • Deeds document property ownership. It must be signed by both parties, notary and two witnesses. All deeds and mortgages are registered.

   Transaction information systems:

   Similar to MLS there is the SIVA system, which is not very popular yet.

   Real estate trade associations:

   Sindicato de Emprasas de Compras, Venda, Locacao e Administracao de Inoveis Residenciais e Comerciais de San Paulo
   (SECOVI)
   Avenida Brigadeiro Luis Antonio, 2344
   90 Andar, CEP 01465-900, Sao Paulo, BRAZIL
   phone: +5511-285-0122
   fax: +5511-284-3188

   License requirements:

   License is required, but high school education is sufficient.

   Forms of ownership:

   Private ownership is allowed in Brazil. Business partnerships must be registered.

   Contracts:

   Two willing and able participants come together in order to transfer atitle of a specific good or property in consideration of payment by the other party.

   Mortgages:

   Typical duration is 30 years. All mortgages must be registered.

   Financing and lending practices:

   Mortgages, commercial mortgages, rural credit mortgages and industrial credit mortgages are types of bank loans.

   Taxation:

   The tax is between 0.5%-4.0%, depending on the state. Additional rural real estate taxes and urban real estate taxes are possible.

   ---

2. BASIC BUSINESS CULTURE

   Fashion:

   Brazilians are very fashion conscious, preferring European style clothes. In rural regions traditional clothing is common

   Basic cultural skills:

   • Brazilians greet each other with a handshake. Close friends often embrace each other.
   • Thumbs up shows approval. Whistling is considered rude.
   Visiting:If invited to dinner it is common to bring a small gift. It is not rude to be late. It is rude to ask money-related questions.

   Restaurants:

   If the tip is not included in the bill, 10-15% is OK.