How to buy property safely? The 5 essential steps to avoid losing money

An attractive price and an urgent seller do not replace documents. Proceedings, restrictions, debts or missing authority can change the transaction. Pre-purchase checks assess these factors before commitments, without guaranteeing no later problems.

Property due diligence investigates the asset, seller and transaction structure before significant commitments. These five steps organise the assessment; their scope depends on the case, and no checklist eliminates every risk.

Step 1 — Why is the property record (matrícula) the most important document?

The property record identifies the registered owner and recorded attachments, mortgages and other rights. Obtain a recent certificate, observing validity requirements for the specific act and proximity to closing. Check title, signing authority, burdens, area and description. An assignment by someone other than the registered owner requires analysis of the rights transferred and the route to complete the chain, not an assumption of ownership transfer.

Step 2 — Which seller certificates should I demand?

Civil, tax, labour and protested-debt certificates may form part of proportionate seller checks. For companies, verify existence and authority; partner checks depend on risk. Law 13,097/2015 article 54 does not make additional court certificates a general condition of validity or good faith. Assess fraude à execução under CPC 792, STJ Súmula 375 and special regimes such as CTN 185 for tax enforcement. For married sellers, check whether spousal consent is required under article 1,647 and its exceptions.

Step 3 — Which of the property's debts “travel” with it?

The purchaser is liable for the transferor’s condominium debts, including interest and penalties (Civil Code 1,345). Property taxes may pass to the purchaser under CTN 130, subject to proof of payment in the instrument; in a judicial auction they attach to the price. Obtain tax status, condominium statements, planning records and building annotations. Buyer–seller clauses do not alone defeat creditors’ rights.

Step 4 — What does a good purchase and sale agreement need?

Identify parties and property, price, payment, possession, outstanding documents, debts and default consequences. Where appropriate, condition effectiveness or payment on documents or financing. Earnest money (arras) follows articles 417–420: a defaulting payer may lose it, while a defaulting recipient may owe repayment plus an equivalent amount. Where a withdrawal right is agreed, article 420 gives the deposit a compensatory function without supplemental damages. Do not assume every buyer withdrawal costs double the deposit.

Step 5 — Why execute the deed and register it without delay?

In an inter vivos purchase, registration of the title instrument transfers ownership (article 1,245); the deed, equivalent instrument or keys alone do not. Coordinate payment and registration to reduce exposure, without assuming every earlier creditor automatically prevails. São Paulo’s general ITBI rate is 3%, with special rules. CTN 38, amended by LC 227/2026, uses market value estimated through disclosed technical criteria and contestable through a counter-valuation procedure. Notarial and registry fees are separate. A hypothetical R$25,000 budget for a R$600,000 property is not a quote: verify the base, fee tables and whether financing covers any expenses.

Hypothetical example: the Ribeiro couple’s purchase

Imagine Marcos and Júlia considering a R$650,000 apartment in Perdizes with no apparent recorded burden, R$38,000 in condominium debt and labour enforcement against the seller. Direct payment from the price, security and examination of remaining assets may form part of a solution depending on the proceedings. A hypothetical R$15,000 discount depends on negotiation and does not itself remove risk. The purchase may need further conditions or be abandoned. Names and amounts illustrate the analysis, not a real result.

The most common (and costly) mistakes

1. Paying the down payment before the certificates. Risk: discovering the problem with the money already in the seller's hands.
2. Stopping at an unregistered private contract. Risk: remaining without registered ownership. A voluntary deed, compulsory conveyance or adverse possession each requires its own conditions; adverse possession is not mandatory.
3. Taking the broker's word on debts. Risk: inheriting overdue condominium fees and IPTU through propter rem liability.
4. Delaying registration. Risk: increased exposure to disputes. Priority, possession, good faith and statutory rules require examination rather than automatic assumptions.

An actionable checklist for a safe purchase

• Recent title certificate valid for the act, with owner, burdens and description checked;
• Seller certificates and authority checked according to risk and marital-property rules;
• Property certificates: IPTU, condominium fees, occupancy permit/annotations;
• Contract with a condition precedent, penalty clause and liability for prior debts;
• Case-specific ITBI and fee calculations; registration coordinated with payment;

Frequently asked questions

Which documents do I need to check before buying a property?

Recent title records, relevant earlier instruments, identity, signing authority and marital status, tax status, condominium statements and planning documents. Select seller certificates according to risk. No universal list guarantees all problems are visible; Law 13,097/2015 article54 also matters.

Is it safe to buy a property with only an unregistered “side contract” (contrato de gaveta)?

A private contract can create obligations but does not alone transfer ownership in an inter vivos sale (article 1,245). Disputes may arise with creditors, other purchasers or successors. A voluntary deed and registration, compulsory conveyance or adverse possession may be considered according to their requirements; there is no single remedy.

Does the previous owner's condominium debt pass to the buyer?

Yes. Condominium debt is a propter rem obligation: it attaches to the property and can be charged to the new owner, including through attachment and auction of the unit. That is why the condominium fee clearance certificate, signed by the building manager or the management company, is an indispensable document before signing.

How much does it cost to transfer a property in São Paulo?

Add ITBI and applicable notarial and registration fees. São Paulo generally charges 3%, with specific exceptions. The base must follow CTN 38/LC227 of 2026, disclosed technical criteria and a counter-valuation procedure, alongside applicable local law. R$25,000 for a R$600,000 property is only a budgeting illustration, not a quote. Confirm fee tables, tax calculation and financing terms.

When should I bring in a lawyer when buying a property?

Before a deposit or binding offer, while documents, conditions and responsibilities can still be adjusted. Advice can reduce risks but does not replace notarial, registry, tax, planning and financial checks or guarantee no litigation.

Safety in a purchase is not a luxury: it is the difference between an asset and a lawsuit

Title records, seller checks, debts, contract and registration organise risk assessment but do not eliminate uncertainty. Read documents together and refresh checks when time passes between offer, deed and registration.

At Falchet e Marques Sociedade de Advogados, in São Paulo on Avenida Paulista, we investigate properties and sellers and draft contracts according to each acquisition’s scope and risks.

Talk to our team on WhatsApp: +55 11 95901-1854 — send us the property's address and the offer you received, and you will get back the verification points for your case.