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

The house was perfect, the price was below market and the seller “needed to sell fast”. Six months after moving in, the court summons arrives: the property was attached in an enforcement action against the previous owner, and the sale may be declared ineffective as fraud against creditors. Stories like this are not bad luck — they come from skipped steps. For most families, buying a home means the largest asset of a lifetime; and the market punishes those who treat legal security as a detail.

Real estate due diligence is the prior investigation of the property and the seller before you sign anything. In this article, we walk through the 5 steps that shield the purchase — from the property record to registration — and what each one saves you in real money.

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

Because the property record is the property's “birth certificate”: it shows the true owner, attachments, mortgages, usufructs and freezing orders. Request the up-to-date property record (no older than 30 days) from the competent Real Estate Registry office and check: is the seller listed as the owner? Are there registered liens? Do the area and the description match reality? Whoever buys “by contract” from someone who is not the registered owner is, legally speaking, buying a problem.

Step 2 — Which seller certificates should I demand?

The seller's personal certificates reveal risks the property record does not show: civil and tax enforcement court dockets (state and federal), Labor Courts, protested debts and, if the seller is a company, certificates for the legal entity and its partners. The goal is to rule out fraud against creditors (art. 792 of the Code of Civil Procedure): if the seller faces lawsuits that could drive them into insolvency, the sale can be deemed ineffective against the creditors — and you are the one who loses the property. Married seller? Require the spouse's consent (art. 1,647 of the Brazilian Civil Code).

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

IPTU property tax and condominium fees are propter rem obligations: they follow the property, not the owner. The previous owner's condominium debt can be charged to the buyer — and units have gone to auction over it. Demand a condominium fee clearance certificate signed by the building manager and the municipal real estate tax certificate from the City of São Paulo. For houses, also check that the construction is regular (occupancy permit and annotated built area).

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

The contract is where the negotiation becomes protection: full identification of the parties, description matching the property record, price and payment terms with a condition precedent tied to the certificates, a deadline for handing over possession, a penalty for breach and liability for prior debts. A down payment made before the contract is reviewed is the classic mistake: earnest money (arts. 417 to 420 of the Brazilian Civil Code) has its own legal regime, and backing out can cost double the down payment — know what you are signing.

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

Because “if you don't register, you don't own”: ownership only transfers with the registration of the public deed on the property record (art. 1,245 of the Brazilian Civil Code). Between the deed and the registration, the property still answers for the seller's debts. In the city of São Paulo, set aside around 3% for the ITBI transfer tax plus deed and registration fees — on a R$ 600,000 property, something around R$ 25,000, which needs to be budgeted outside the financing.

A concrete example: the Ribeiros' purchase

Marcos and Júlia found a R$ 650,000 apartment in Perdizes. The due diligence revealed a clean property record, but R$ 38,000 in unpaid condominium fees and a labor enforcement action against the seller. The negotiated solution: the condominium debt was settled with part of the price held back, and the seller proved he kept enough assets to cover the enforcement action — all documented in the contract. The purchase closed safely and ended up R$ 15,000 cheaper. Without the steps, they would have bought the debt along with the keys.

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. Accepting an unregistered “side contract” (contrato de gaveta). Risk: spending decades without formal ownership — and depending on adverse possession to fix it.
3. Taking the broker's word on debts. Risk: inheriting overdue condominium fees and IPTU through propter rem liability.
4. Postponing registration to “save money”. Risk: an attachment registered before your registration beats your deed.

An actionable checklist for a safe purchase

• Up-to-date property record (30 days) — owner, liens and description checked;
• Seller's certificates: civil, tax, labor, protested debts (and the spouse's);
• Property certificates: IPTU, condominium fees, occupancy permit/annotations;
• Contract with a condition precedent, penalty clause and liability for prior debts;
• ITBI (3% in São Paulo) and registry fees budgeted; immediate registration of the deed.

Frequently asked questions

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

The essentials: an up-to-date property record (matrícula) for the property (issued within the last 30 days by the Real Estate Registry office), the seller's personal certificates (civil, tax, labor and protested debts), the municipal IPTU property tax debt certificate and a clearance statement for condominium fees. Together they reveal who the real owner is, hidden liens and debts that follow the property.

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

No. A side contract binds the parties to each other, but does not transfer ownership — that only changes with registration on the property record (art. 1,245 of the Brazilian Civil Code). The buyer stays exposed to attachments against the seller, double sales and disputes with heirs. It is the origin of a large share of the irregular properties that can later only be fixed through adverse possession or court-ordered title.

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?

In the state capital, the ITBI transfer tax is 3% of the transaction value (or the municipal reference value, if higher), plus deed and registration fees, set by value brackets. On a R$ 600,000 property, the package comes to around R$ 25,000 — an amount that must be budgeted outside the financing.

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

Before paying the down payment. That is the stage when due diligence on the certificates and careful contract drafting can prevent fraud against creditors, hidden debts and abusive clauses. The cost of the legal review is a tiny fraction of the property's value — and it is the only step that can prevent, rather than merely remedy, the loss of your investment.

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

The 5 steps — property record, seller certificates, property debts, a strong contract and immediate registration — form a simple funnel that filters out practically every relevant risk in a purchase. Skipping any of them means betting the biggest investment of your life on luck.

At Falchet e Marques Sociedade de Advogados, a law firm in São Paulo (Av. Paulista), we run complete due diligence on properties and sellers and draft the purchase and sale agreement — so your acquisition reaches registration with no surprises.

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.